How Can You Responsibly Handle Your Kredittramme Kredittkort?

For most credit card customers, a very large credit limit is not necessary. However, the structure you are given isn’t always the best fit, and there can be instances where you need to make adjustments.

This page contains all the information you want on credit limit amounts, credit limit modifications, and helpful advice on selecting and utilizing credit cards.

Which credit line do you receive?

The top limit varies based on the credit account company and is often around $50,000 and $150,000. Still, this does not imply that if you obtain the card in question, you will immediately be eligible for the maximum limit.

A credit card featuring a great loyalty program

Useful financing option with a generous credit limit, several set savings options, complimentary travel insurance, and more perks. By not using cash and always paying off the whole amount owed by the due date, you may avoid incurring interest on credit cards.

Cards with no credit limit on them

Very few individuals actually need unlimited credit. Since these cards might be costly to own, you should stay away from them if you have a disorderly spending habit. The readily accessible, limitless credit cards in Norway are really referred to as payment cards.

A few of the cards that SAS has produced in collaboration with American Express are typical examples. When using a payment card, all unused credit must be paid off at the following maturity. Stated differently, you are unable to split the cost into many payments as you would with a standard credit card.

Payment cards have the benefit of not charging interest until the next bill matures—even on withdrawals. The drawback is that there is a significant chance of accruing large debt, the fees are sometimes expensive, and there is frequently a hefty yearly cost. Furthermore, debt collection cases are likely to follow if you fail to reimburse all unused credit by the deadline.

Ask for a lower credit limit

It is simple to decrease. Typical examples are a couple of the cards issued by SAS in cooperation with American Express. Payment cards mean that all used credit must be settled at the next maturity. In other words, you cannot divide the bill into several installments, as you can with regular credit cards.

The advantage of payment cards is that interest is not calculated, even on withdrawals, until the maturity of the next bill. You can view your rate options at kredittkortinfo.no/kredittramme/ and verify your interest calculation date. 

The disadvantage is that the fees are often high, they often have a high annual fee, and the risk of getting into high debt is great. And, if you do not repay all used credit by the due date, the road is short to debt collection cases.

You can easily reduce, if you would like, your credit limit. This is completed via the online banking platform and often takes effect very instantly. No application procedure is necessary, and the card company’s permission is not needed.

Keep in mind that you may often raise your credit limit later on, but not below what you originally had.

Request a higher credit limit

You have to apply every time you want your credit limit raised. Similar to how you may lower the limit on your own, this is also done with the online banking solution. You have to prove that you constitute a secure payer before you can use most credit card firms. Generally, in order to raise the card, you have to have had it for six months.

Hold on to your information, and be aware that the processing of your application could occasionally take several days. If you would like more credit before your vacation, for instance, you should apply a minimum of one week in advance.

Before a borrowing limit may be raised, a bank or mortgage firm must conduct a fresh credit evaluation. The ratio of debt to income will be reevaluated in this case, among other things, to make sure your overall debt does not exceed the amount of five times the amount you make. 

Along with the payment record at the business where you obtained the credit card, it will also consider your capacity to make additional payments. For instance, if you haven’t paid the bill for

your credit card activity, which might result in the application being denied.

Having a solid payment history is advantageous. Then, when your credit score rises, obtaining finance with less interest rates will become simpler in the future.

Certain credit providers raise their clients’ credit limits if they think it appropriate or if the client appears to need it. This isn’t always a wise approach, and it occasionally leads to people having a lot of credit card debt. 

Furthermore, there’s a danger involved with having a large credit limit. The amount might be large if a card is taken and used improperly. Should it transpire that you have carelessly kept the card, you can be held liable for its loss.

There is going to be a chance to choose not to have your credit limit increased by the corporations who do this on their own. Usually, the page where you apply for more credit will also include a box for you to check.

What Act says what about financial contracts?

Credit providers cannot raise your credit limit without your permission, according to the Financial Contracts Act. When the credit bureau does this, it usually indicates that you executed the credit agreement accepting the possibility of an increase.

When you obtain a credit card for the first time, you ought to become aware of this and wish to avoid having your credit grow as you want. Enter your online banking solution in this situation and make a reservation to protect yourself against changes.

Crucial information on the credit limit

The amount you are eligible for, say, on a mortgage, will be reduced by the total credit balance on all of your credit cards. All unsecured credit and loan accounts are presently listed in the recently launched debt registry (created in summer 2019). 

Even if you haven’t used up all of your credit limit, the credit limit on the card in question, or the overall maximum if you have credit on many cards, may be seen as debt.

The entire credit limit can therefore be subtracted from the maximum loan amount you are eligible for if you plan to apply seeking an advance in another setting. This is because loans that result in debt over five times one’s income are prohibited by government regulations from being extended by banks.

As a result, it will frequently be essential to either cancel at least one card or drastically lower credit limits. To ensure that your actual credit limit and what is recorded in the debt register match, you should get in touch with the appropriate credit firm in this situation.

Notably, your debt-to-income ratio will not be computed if you have a single credit card with a maximum credit limit of NOK 25,000.

Selecting an appropriate credit card

The size of the credit card will usually be adequate, and the amount of the upper limit shouldn’t typically be what makes you select one card ahead of the other. It would be more suitable to concentrate on the financial conditions and the advantages the card offers.

Here are some suggestions for things to consider:

When you buy products and services, will you pay interest? If you pay off the whole credit balance before the due date, you will be able to avoid paying interest on the items and services you have purchased. If you are aware that interest will be charged, get a credit card featuring a low interest rate.

Must you use the card to make cash withdrawals? All cash transactions are computed interest-bearing from the outset, including postal payments, bill payments, and account transfers. Select a credit card with minimal fees or no interest rates in order to

withdrawals.

Should you use the card to exchange capital goods? Select a credit card that provides set discounts and/or cashback on products that you are certain you will purchase.

How much gasoline do you use? Select a credit card that offers you cashback or set savings on gasoline, diesel, and other regular purchases you make at gas stations.

Is a travel card necessary? In many situations, credit card numbers are the easiest and most convenient way to make payments, particularly when abroad. Select a credit card that offers complimentary travel insurance along with any additional insurance you may require. 

If you’d like, you may simply lower the credit limit on your own. You will need to apply for a greater credit limit, after which you will undergo another credit assessment. Your capacity to borrow money is impacted by your total credit limit. It is crucial to be aware of this, particularly for those who intend on applying for larger loans, such as mortgages.

The majority of individuals have adequate credit accessible, therefore when selecting a new card, they should pay more attention to the features it offers and its rules regarding payments.