Why credit cards saves you money

All the time we can hear a lot of people complain about that credit cards are very expencive to use, that the interest rates on credit cards are too high, and that these cards in general are close to rubbish. These stories aren't entirely true, because if you know how to use a credit card, it will definetly save you some money.

Cashback

In norway we aren't that used to the word cashback, but it is getting more and more into stores and shops now these days. Cashback means basicly that that when you buy something, as a reward you get some of the money you spent back again. As for credit cards, this has now become one of the major ways to get new customers.

If you use a credit card that has cashback when you buy something, like for example gasoline, you will get refunded up to, in some cases as much as 12 %, but the more normal is between 1 and 4 % of the amount. The only thing is that you have to use the spesified credit card when you are paying for your goods or services.

One of the major issuers of credid cards in Norway, the Fokus Bank, have introduced a card that in many test have been said to be the best one of them all. The card, 365Privat, offers cashback when the holders buy fuel, shoes and clothes, and as a lot of people in Norway buy these items, this card will definetly save you some money.

There is a website or blog that has a lot of information about which cards offers which discounts, and what the annual fees are and so on. There you also will find useful tips and how to use your cards to save you as much money as possible. This blog is in norwegian, good luck!

Comments 2 comments

MPChris profile image

MPChris 4 years ago from Atlanta, GA

Very interesting. However, you have to keep in mind that as a business, if a company offers cashback, you will pay for that cash back in interest. With the exception of seasonal promotions or other very special programs. Back in the day, Amex used to offer cashback, as did another card, on all transactions (including moving the money around).

My father told me he once bought a car on one of his early credit cards. He would trade the balance from card to card every day or so; and would pay only the monthly minimums. He said that he paid off about 25% of the loan before he started making regular payments.

Unfortunately, deals like these don't exist anymore. Most companies don't allow you to move cash from credit card to credit card (and will charge a fee for withdrawing money). However, if you get a good card, you can easily withdraw, deposit into a debit, pay on another card, and the cash back will pay out the withdrawl fees.

Great Hub!


seigfried23 profile image

seigfried23 4 years ago

Hello! Thanks for taking the time to write this hub. In any case, the only way to truly take advantage of cash-back when dealing with credit cards is to pay your balance off each month, so that interest never accrues. Because credit card companies are in it to essentially take advantage of people missing payment dates, you can make out quite well if you're very responsible about money.

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