There’s a variety of different bank cards that you can get in Sweden. It’s important for a bank client to understand the difference between these and to know which type of financial product will be best suited to their needs and preferences.
The research on this matter can be done by the client but it should also be done with the assistance of a bank you’re planning to take your business to. That way you get to make a call based on all the relevant information.
Knowing the Difference
Before a bank client decides to get and use a product there, it’s best to be positive about their financial status and the plans they have regarding the bank itself. There are also resources online such as Basta Kreditkort, where you can study, review and compare different cards.
It’s also important to note that there’s a lot of difference between different cards of the same type since many different banks are offering their features and their benefits related to the cards they plan to issue.
Debit Cards
Debit cards are the most commonly used type of bank card out there. Unlike loan-related cards such as those from Remember Flex, debit cards aren’t there to help you borrow money. They are just a card connected with a bank account and used to make and transfer payments.
There’s usually an annual fee that comes with using these cards and there are charges related to using them. For instance, you may get a charge for checking your bank statement or for withdrawing cash with a debit card. This is the card to use if you only plan to spend the money you currently have on your account.
Credit Cards
Credit cards are another common type of card and they are in frequent use in Sweden and beyond. These cards, such as the ones offered by Coop Medmera Mastercard are used to borrow money that would then be repaid from your account in installments and often with interest.
There are also many different options and benefits that such cards offer beyond just the ability to pay off your debt in installments. For instance, there are cashback programs, and special rates offered to those who pay off their credit card bills on time and in full.
Revolving Payment Cards
Revolving payment cards are also credit cards but with a twist. They allow you to defer repayment of debt and deal with it in periodic installments. These installments can come in the form of a percentage of overall debt, and or in the form of a fixed amount, you’ll pay each month until the full sum is paid off.
As is the case with other credit cards, these cards also offer a variety of different bonuses and special features, such as a cash back option and better rates for those who pay off their debts on time, and in full.
Prepaid Cards
Prepaid cards are best used as gifts since they come with a prepaid amount on them and that’s the only amount a person using them can spend. That way you can give someone a cash gift without giving them actual cash which some may find to be undignified.
After the prepaid amount has been spent the person using the card can further add funds to it and use it as they would any other card. There are no charges for it and there’s no way to use the card to borrow money. The amounts you can deposit on such a card vary greatly.
Reward Credit Cards
Reward credit cards are similar to any other type of credit card out there but it offers a point system for rewarding the users that spend a certain amount and repay their debts on time. The reward can come in all shapes and sizes and it’s sometimes a discount on a certain product or a cashback reward.
In some cases, the reward can be a better interest rate you could get after using a card for a certain amount of time or after spending a certain amount of money.
A Virtual Card
A virtual card can be any of the cards we’ve mentioned above but there’s no physical card to speak of. All other attributes of a bank card such as a serial number, pin code, and CVV code are still there, so the card can be used to make purchases online and to pay in installments.
These cards often come with a QR code that you can install on your phone. That way you can even use a digital card at a payment terminal and have it read as you would with any other card.
Which One to Use?
There’s no one simple answer to that question. It depends on what you plan to use the card for and how much you’re able to borrow if you plan to use one of the cards that are made for that purpose. It’s also useful to consider the additional features and benefits when choosing between cards of the same type.
It’s also possible to have more than one card and to use them when their purpose suits your needs and your goals. Make sure to inquire about all of the options available to you before making a long-term commitment to any card or bank, especially if there are fees for using a card.
