Perhaps you are and are considering taking out a loan, or you may need to pull slightly over the map to afford the books to the studio? Either way, you may want to read this guide to what credit is and what types of credit available.

What is credit?

The credit is specifically some money as your bank or financial institution makes available to you. You pay nothing if you do not use credit and you will then not have to pay any interest or fees for use of the credit. It is therefore a good idea to have credit as a backup if you are going to stand with unforeseen costs to be covered here and now, for example, repair of car or bike or a dentist bill.

In Denmark, typically with two types of credit. One is an overdraft facility and the other is credit card debt. In many countries have no such thing as an overdraft, but only credit cards, which typically involves a number of advantages. These can include air miles and cash back. Exactly this you can read more about here .

overdraft

Overdraft is provided by the bank you have your account with. There you can arrange different variables with your bank manager such as amount of credit and the interest rate you'll pay on the coating. Several banks have both overdrafts and credit cards, so check what you need for your needs before making a selection.

Cards with a credit

Cards with a credit - also called credit card, works almost like an overdraft facility, but there are some differences. One of the most popular credit cards are MasterCard Gold, which has a number of advantages as you do not get at a bank overdraft. For example, travel insurance throughout Europe. If you are cheated on the internet or your airline goes bankrupt, you can get your money back.

There is also a special kind of credit card that works only in certain stores. Have you been employed by the Danish Supermarket know you might Salling card where you pay more than your salary, ie on credit, but you can only use the card in Salling. Similarly works Magasin card, where you can shop for 40,000 kroner in all Magasin stores in Denmark, and you get discount benefits on certain weekends each year.

Before you select your card, it's a good idea to explore the merits thoroughly. Is there a purpose to acquire the credit card, but only to cover the aforementioned unforeseen costs, it may be advantageous to choose a credit card with a low interest rate. Do you travel a lot, it can be a great advantage to choose a credit card that gives access to airport lounges world above. It can make the wait at an airport a little more bearable.

Loan vs credit

There is a big difference between when credit or a loan will be most beneficial for you. The biggest factor that should influence your decision is the annual percentage rate, also known as APR. In addition, you must consider what the purpose of your loan or your credit is. In the example, you just want to have the credit as a security or whether you need the money for something specific. Should you borrow a larger amount, a loan is often cheaper than using your credit. You may benefit from comparing both credit cards and loans on Samlino.dk and see what is the best and cheapest solution for you.