Home » Kredittkort – How to Choose the Right Credit Card

Kredittkort – How to Choose the Right Credit Card

When options become multiple, making a choice becomes quite difficult as you might need to compare the benefits and disadvantages of each option to make the right choice. Most persons usually have some issues with making a credit card choice. There are over ten credit card categories and options to choose from.

Before choosing a credit card, you should first understand the types of credit card categories and the options you have available to you. How do you choose the right credit card for you? Do you need to use all the credit cards to know the beste kredittkort (best credit card) for you? These questions would be answered in the course of this article.

Credit Card Categories

Let’s take a look into the various categories as well as how they might influence your expenses and financial decisions.

Cash Back Cards

These options provide rebates on your expenses. However, the cash backs are given based on the kind of card you have. Depending on the provider, some would offer users percentages of money spent while others might offer points on each fund spent. These points can be used to win travel expenses or dinner in a restaurant of your choice. Other providers offer both methods.

As much as these cash-back cards look very appealing, they usually have annual fees attached to them. Although not all providers charge so much, those with high reward and bonus offers usually charge as much as $100 monthly.

If you mostly use your card at grocery stores or eateries, then you should consider going for a bonus cash back card instead of one with a standard rate. Standard rate cards are suggested for those who have a broad range of spending.

Reward Cards

This is a general classification for all cards that offer rewards. We could group cashback cards into this category. These kinds usually offer bonuses of all kinds. The bonuses are given according to a predetermined percent of your expenses within a particular period. Bonuses are often offered on your expenses in petrol stations, restaurants, and grocery stores.

Making this your choice would be a great step if you plan to spend money on a daily basis. One great advantage of this option over cashback cards is that they offer a wide range of ways in which points can be redeemed. Some ways bonus points are claimed include gift cards, merchandise, dining, etc.

Travel Cards

cards with airplane-toy and glasses

This category is basically for those who intend to earn travel related rewards. These rewards include travel credits that can be used for purchases during travel and points that you can use to pay for your travel ticket or pay hotel bills. Some providers also create programs like flyer programs, hotel loyalty, or ticket raffle draws periodically. 

If you are one whose business or job requires frequent travel, this category would be nice for you. However, you might not necessarily need to travel often to earn travel rewards as some providers offer travel bonuses on purchases that are not travel-related.

Credit Cards for Business

This category helps you to separate your business expenses from personal expenses. Rewards are earned on all business expenses. More interestingly, this can come in various forms like business cash back cards, business reward cards, business travel cards, etc. However, to get approval for this card, you need an active, registered business.  

It usually has features that will make the running of your business smooth. Some features include an expense tracker, budget planner, and exciting rewards. While some card providers reward you regularly for every expense, others give higher rewards for specific expenses like those spent on business trips or internet services. There are generally two methods in which you can redeem rewards; these are through cash backs or on travel tickets.

Credit Cards for Students

woman wondering at credit card

This category refers to beginner credit cards. They are made for those who do not have much credit history. Acquiring this card is not very difficult and easily gets approved compared to other categories.

Additionally, most providers do not charge annual fees on them. They also offer bonuses on little expenses. These cards are meant to develop a good financial habit in younger people. You can read this article for more info about credit cards for students.

Secured Cards

This category is not the most common but is the easiest to be approved. The primary application process involves paying an amount to secure the card. Other cards are not usually secured. As a result, they have stringent procedures in their application process.

However, this category requires paying a sum of money as collateral before you can receive credit. The credit is limited to the amount paid. You may be required to pay a minimum of $50 at first. This category is best for those who want to build a good and disciplined credit history.

Store Card

These are given to customers by retail stores and are meant to inspire sales. They enable customers to make purchases without available funds at the moment, helping them pay gradually. These cannot be used outside the store provider. However, some allow usage within the same stores in different branches.

This category often has steep interest rates. However, there is a deferred interest period. This is a period in which little or no interest is charged on your credit. If this period elapses and you can’t pay off the debts you owe, then you would be charged higher interests from the period. It is, therefore, advisable to pay off debts within the deferred period to avoid been charged that much.

Co-Branded Card

These are offered by most stores but the only difference between them and the above mentioned is that they are usually branded through regular card providers like master card, American Express, or Citi. Rewards in this category are restricted to the brand but are usually very generous and catchy.

Making the Right Choice of Card

The following tips will help you make the right choice of kredittkort:

Go Through Your Previous Credit Score

credit score - poor, average, good

Before heading to make a choice, you should take a step back to review your previous credit score. Doing this will enable you to know your stand and how to proceed. You should note that having an excellent credit score would make it easier and faster to get any card of your choice, travel cards inclusive.

If you have a poor or fair credit score, you might be restricted to several options. For example, you may only be eligible for a secured card. However, you can still boost your score by paying up debts on time as well as reducing the number of credits you use.

Write Your Goals in Black and White

The next step is to understand your purpose for wanting it. Do you want one for your travel expenses, business trips, large rewards, or do you just need low-interest rates? These are a few reasons. Yours could be different. Having the reason at hand can help in your selection process.

Assess your Current Debts

If you have recently accrued high-interest debts or loans, you should consider going for a card that consolidates your loan balance for a while. If you have no debt, then you can go for any other kind of card.

Compare Reward Schemes

If you intend to get a card because of the reward offerings then you should check through the options to see which one offers the best reward for you. For instance, if you want a travel reward you should consider going for a travel card.

Look Out for Charges

Finally, before making a choice, make sure you compare the charges. Check for hidden fees in terms of usage. Also, look out for yearly fees, application costs, late fees, as well as over-limit charges.


You can easily make a credit card choice without going through much stress. You can do this by identifying the various categories and comparing them with your needs. Credit scores and debts are very important criteria in the application process. It is important to maintain a very nice credit score to avoid your application being rejected.

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