An In-Depth Guide on Kredittkort (Credit Cards)

Cards like credit and debit cards were made to provide a means of monetary transaction that could be easier, faster, and durable. They are rectangular and made of thin plastics and a few metals, making them easy to carry about. They can only be offered by banks and in some cases, regulated financial service providers. 

The primary aim of getting one is to be able to borrow funds from it faster and repay in a stipulated time frame. This implies that cardholders can easily purchase goods or services using their cards without necessarily having cash in them. According to the law guiding the use of credit cards, users are allowed a repayment period of 21 days. 

After this period, the card issuer begins to accrue interest on the card, depending on the interest rate agreed upon in their policy. Due to this, users are advised to repay borrowed funds before the grace period elapses to avoid extra billings on their cards. In this article, we will discuss extensively the topic of credit cards, the categories of credit cards, and how you can apply for one.

Credit Card: Categories

There are several types of cards. An example is the InstaPay MasterCard. You can check out Kredittkortinfo to see more types of cards used in different parts of the world. 

The major cards offered by banks and several financial institutes are MasterCard, American Express, Discover, and Visa. However, the numbers of credit cards available are over a thousand, making it difficult for us to explain every single one of them. Therefore, we will classify them into three categories: Reward or Store Cards, Secured Cards, and Prepaid Debits Card.

Reward or Store Cards

These kinds of cards are offered by businesses like malls, automobile stores, petrol stations, etc. They are usually offered by brands who want to provide their dedicated customers and clients with the convenience of goods or services purchase. The cards usually carry branded names of the store. 

However, these kinds of cards are only limited to purchases within the product or services of the issuer. For example, if a petrol station offers its customers a Store Card, it would be used in purchasing petrol from the station. Bigger brands can co-brand with MasterCard or any other major card. This now makes it possible for you to use it in other stores. 

Notwithstanding, you can easily get this category of credit cards compared to major bank cards. Most businesses entice their customers with incentives placed on the card usage like discounts on specific products, gift vouchers, etc.  

Secured Cards 

Here, the user is prompted to deposit an amount of money that serves as cash security on the account. Money available for borrowing on the account would be equal to the cash deposit made. The borrowing offerings available to users are limited. Most users of this card have poor credit transactions, which is why they go for this option.

Prepaid Debit 

This is similar to the secured card but instead of depositing funds into a secure account. The user is prompted to link another account with funds to the issued debit card. This category offers more borrowing options together with low-interest rates compared to secured cards.

Credit Card: How to Get One 

Starting your application process for a credit card might seem very tasking. However, it is quite simple to do. This section of the article will guide you on the necessary processes and steps required. The application process is divided into three major steps:

Go Through Your Previous Credit Reports 

You must understand that before credit card issuers approve your application, they ensure to go through your account details and history. They check for information on monthly and annual income, house payments, and most importantly your previous credit scores. 

The scores are determined based on payment histories, how regularly you have applied for them, usage, and duration of borrowed funds. Checking these requirements gives you an idea of the category or class of card you should apply for instead of getting rejected as it could be very discouraging. 

Also, check through for any errors in your transaction history as it could reduce your score without your knowledge. If there are errors, ensure that they are settled with your credit bureau before applying. You click here to know more about credit scores.

Choose Your Preferred Card 

After ensuring that your transaction history is accurate, you can now select from the available card options based on the history requirement stated. In addition, you should be able to understand your reason for getting a credit card. 

For example, would you love to use it for daily purchases? Can you pay annual fees? Would you like a reward for your purchase? Asking yourself these kinds of questions can assist you with your selection process, making it easier to make the right decision.

Complete the Application Form

This is the last step, and it is easier. At this point, you have cross-checked your transaction history and ensured that your score is suitable for the card of your choice. The next step is to complete the form on the issuer’s website. In most cases, you will receive an approval within 24 hours of application submission, whereas some take a few weeks.

Some of the primary fields you will fill include name, your mother’s previous family name, your security number, employment status, contact information, income range, property listings, etc. The minimum age requirement to be eligible for a credit account is 21 years. However, if one can show a reliable income source for credit payments, an account can be opened for them irrespective of their age.

After submitting your application, two things might happen. Your application can either be accepted or denied. If it is accepted, you would have to anticipate the delivery of your card, which would be sent mostly through your mailing address. The limit on your card would also be relayed to you together with your card number which can be used for online transactions.

Application Denied. What Next?

This can be very depressing and discouraging. You may even be tempted to give up all hope. However, understanding the reasons why your application was denied would make it possible for you to make better preparations when reapplying. Unsuccessful applications are mostly due to poor credit histories and low scores, say Experian. This can be because of delayed payments, unpaid borrowed funds, or when you do not have a credit history at all. 

You can also mail the issuing company to reconsider your application and try to prove to them that you can manage borrowed money. If that does not work out well and your application is still declined, you could get someone qualified to apply and fill you as the co-borrower.


Most persons find it difficult applying for a credit card, others probably turn back after the first try when they got rejected. Knowing the state of your credit history and score can help you in determining what kind of account to choose. You might want to be very careful during your application process as continuous application decline reduces your chances of being accepted in the future. In all, try to keep a healthy credit lifestyle by paying off credits earlier.