Credit cards in Finland well pass as the greatest way for borrowing money and sending it on the go. Generally, the cost of living in Finland just like the other Nordic countries is comparatively high which then makes it difficult to completely avoid borrowing. People in Finland borrow in different ways to buy a home, purchase a car, buy expensive gifts or just foot their daily bills.
By having a credit card in Finland, you could just be pulling a boss move to borrow money, have it on a credit card and spend without anybody asking questions. With a credit card, borrowing just gets easier, convenient and interesting. I daresay the enjoyability of using credit cards to borrow make holders run the risk of overspending. But all in all, a properly planned credit cards change lives.
Importance of having credit cards in Finland
The bottom-line about credit cards is that they restore dignity of the borrower and saves them the agony of having to fill out loan application forms every now and then. The forms for applying for a credit card which also sets the maximum borrowing is a one off thing. This means that once set up and running, the credit card issuer will not be summoning you to make in presence signing. Once a customer, the credit issuer has your back for all the shortfalls you have in your budget.
Apart from the convenience, credit cards also guarantee you a high level of safe borrowing. After a credit account has been set up and running, the money now becomes yours. All that the credit card issuer does is hold it for you safely and allowing access at every turn. The safety with credit cards become of even much importance for people who travel a lot. It saves the burden of carrying bundles of cash which come with their own risks. The only thing that the holder of a credit card must observe at all times is to avoid overspending and incurring transaction costs that could otherwise be avoided.
As someone having a valid credit card, you don’t need to think twice when you walk into any shop. A lot of point of sale places in Finland accept credit cards as a way of paying for goods and services. With the card in your wallet or at hand, you can be certain to walk out with whatever goods or services needed. In any case, the credit card is your money!
What makes credit cards a darling of so many in Finland are two;
- Credit cards provide extra flexibility because they are widely accepted in different shops
- The cards assure safety and security. A credit card has a PIN which only the owner or the people he designates have. This means that at all times, the money held in the card is out of research by fraudsters.
Common credit cards in Finland
In Finland, most credit cards issued internationally are acceptable. The credit cards in Finland include American Express, Diner’s Club, Eurocard, Access, Master Card and Visa. All these can be used in Finland at hotels, restaurants, larger shops, and department stores. With any of these credit cards, nothing will go wrong with your purchase experience. Importantly, the credit card also gives you a way accounting for your borrowings as an electronically generated sheet will always be available to identify where you spent the money and the amounts spent.
The popularity of credit cards in Finland is not only because of their wide acceptance but also that one can recharge the cards and use money there. To offer an extra layer of security and safety, you will be required to show a photo ID as you pay. This means that the chances of your card being abused is almost nill.
Credit card issuers in Finland
Without a doubt, credit cards are worth their popularity in Finland. They make borrowing secure and convent. But, now that the credit cards in Finland have passed the popularity test, where exactly can someone get them? Look not far, there are various issuers of credit cards in Finland. As long as you meet the set out criteria for eligibility, just contact a representative of the known credit card issuers in Finland and get it processed in due time.
You only need to be attentive to compare which credit card issuer is best for you. Take your sweet time to do a proper comparison to know what the credit card has to offer against your individual needs as a person. Don’t just blindly and randomly choose a credit card. It may turn out as a big gamble if you just pick a credit card without a second thought.
Qualifications for credit cards in Finland
Anyone living in Finland or planning to visit the country with the intention to use credit card as a way f making payment can rest easy. Credit cards are widely used in the country and those issued on a foreign country are no exception. However, to qualify for your first credit card issued by a Finnish lender, you must at the very least meet the set eligibility criteria. As is expected, credit is not something to be given without proper background check on the person applying. So, as a starting point, check again what requirements you must meet to stand a chance of being given a credit card.
- You must have a long term residency in Finland
- There must be documented stable income flowing to you in Finland. You must convince the credit card issuer that there is a regular amount of money that you earn. With this assurance, the credit card issuer gets the comfort that you may not turn out as a bad debtor.
- You must be creditworthy. Credit worthiness means that you will not default in recharging your card when its due. Here, you must not be listed anywhere as having failed to honour credit agreements in Finland. It would be a great recommendation that you build on your credit rating from the word go if the end goal is to get issued with a credit card at the end.
- Some credit card issuers will require that you make a security deposit as a guarantee that surely, you are worth being trusted with the borrowing.
As someone living in Finland and interested in acquiring a credit card, it may require a second thought. It will normally not be possible to get a credit card in Finland if there is no proof of having established a significant bank account and steady employment history.
In the event that you do not have an employment history in Finland or credit history there, the option left for you is pay high security deposit to the credit card issuer. This option, although available is mostly recommended for people who are so much desperate for getting the credit card.
Transaction cost when using credit cards in Finland
At this point, it is now open knowledge that credit cards are commonplace in Finland. Their benefits to holders and convenience that comes with them is already well explained. However, the focus now shifts to how much the holders of credit cards in Finland stand to incur.
You should be informed and watch out for the following costs that are attached to using your credit card in completing transactions in Finland.
- For foreign transactions, you will be charged approximately 3% per transaction
- You also will be charged a merchant currency conversion fees. Your credit card may have money available in a currency other than that in which the payment is being made.
- A card payment surcharge will also be levied on your credit card at any time it’s used. For Visa and Mastercard transactions issued by creditors in EU, the surcharge is not applicable.
- Cash advance fee is also charge in the event that you withdraw money in cash from your credit card.
These charges will vary from one credit card issuer to the next and depending on what exactly the card is used for. For all practical purposes, the costs attached to using credit cards in Finland should not make anyone shun them for the very benefits that are clear. Its up to everybody to make a personal choice if it pays to trade off the benefits of having a credit card in Finland for anything else.
Credit card limits in Finland
People always make the mistake of thinking that credit cards allow them limitless borrowing. I guess it’s a matter of wilful naivety for a holder of credit card to be so careless with spending credit on credit cards. Yes, credit cards are luring and before one realizes, they may have already spent way too much for a night out.
Let’s face it, with cash money in your pocket, it easier to realize when the bunch of notes in your pocket gets smaller. You can easily get alarmed and walk out of that night club to save your little remaining money. But credit card is some other monster. You can find yourself throwing party every other weekend yet moving closer to the set credit card borrowing limit.
You as a credit card holder in Finland must acknowledge three thigs. One is that credit cards are not a luxury but actual borrowing which at some point will need to be repaid. Two is, cost of living and parting in Finland comes at a premium price. Your credit card reading will quickly fall to the minimum sooner that you expect it. Third is that there is a maximum borrowing allowed by the credit card issuer every month. As a practice, you will not be able to exceed this set limit. S as a financial discipline, the ringing bells whenever using credit card is to spend only on things that are worth it.
The maximum borrowing is usually set at the time of application for credit card and varies from one issuer to the other as well as the specific circumstances of the holder. Someone who demonstrates ability to repay more cred will as a matter of reality get access to more.
For example, when the credit card issuer, be it a bank or another creditor sets the maximum credit at $50000, you cannot spend $50001 without a new approval. The credit set on the creditors card is your money, so its up to you to spend it carefully otherwise it gets depleted without notice.