More and more people choose to shop with credit cards. It is not so strange considering all the advantages it entails. But what does a credit card actually mean? How does the credit work? And what insurances are included? We go through the answers to some of the most frequently asked questions. For many, the credit card is a security as it provides the opportunity for an extra buffer in case of unforeseen expenses, it offers safe and flexible payment methods and last but not least – that you actually get something back when you shop with it.
What does a credit card mean?
The basic principle of credit cards is that you trade with borrowed money, your card credit. When you pay with the credit card, you simply use the credit. All your purchases are collected on an invoice that comes at the end of the month and you can then choose to pay the entire amount without interest, or postpone part of the payment and then pay interest on the part you postpone. Just like all other loans, the credit card has an interest rate that varies between different cards.
Your credit card also has a credit limit, normal credit amounts a month. Which credit limit you get is determined by which credit limit you yourself applied for, but also which credit limit the lender believes your finances can handle.
How long will i get interest-free credit?
It varies between different cards and lenders. At collector, you can get up in credit and up to 56 interest-free days.
What insurances are included?
Unlike bank cards, a credit card often comes with some insurance, bonus systems and other benefits. Collector’s credit card offers, among other things, up to 56 days of free credit and an extended warranty of up to one year for new purchases of home electronics and white goods. When shopping online, it may be safer to pay with a credit card to avoid having to provide access to your checking account.
Credit card also has delivery insurance for internet purchases, which means you get compensation if the item you buy doesn’t show up or is damaged when it arrives. The insurance applies from the time a product has been purchased via the internet (from a company registered within the eu) until it has been delivered to the cardholder’s home address. All online card purchases will be made more secure with the help of so-called strong customer authentication. This means that you confirm your purchase using bankid or your four-digit pin code.
What is currency surcharge?
When you shop with a regular bank card abroad, most banks add an extra fee to all your purchases. It is called a currency mark-up or currency exchange mark-up. But with a card without a currency exchange surcharge, you do not have to pay a percentage fee on purchases and cash withdrawals in foreign currency, which can save you a lot of money. When you pay for your trip with credit card, both cancellation protection and supplementary travel insurance with a deductible are included. It also gives 0% in currency surcharge.
Can i have an additional card to my credit card?
Yes, if you have an credit card, you can link a free extra card to it for a possible partner or other family member. In our collector bank app, you can keep track of the current card balance, the latest purchases and the latest invoice. Here, all the joint purchases linked to the card are collected in one and the same place. This way, you can see where the money is going, which in turn makes it easier to set up a savings budget.