While having a bank account is essential if you plan to take up work in Norway, not everyone decides to apply for a credit card here. Many people believe that foreigners have no chance of getting one in Norway. And the procedure is not complicated at all! A credit card can significantly make your life abroad easier. In Norway, paying with debit and credit cards is part of everyday life. So if you are planning to move to Norway, it is worth checking how to get a credit card issued by a local bank.
Credit cards in Norway
Norwegians are very keen on cashless payments. In this respect, they are global leaders. They definitely prefer paying by card rather than cash. And although in many countries the number of people using debit and credit cards increased due to the pandemic, Norwegians still rank first.
Importantly, not only Norwegians but also foreigners living in Norway can apply for credit cards in Norwegian banks. However, given that getting a credit card is close to taking out credit, you cannot get it instantly. Before offering you such a service, banks will carry out a comprehensive assessment of your financial capacity. Your obligation as a credit card holder is to ensure that you always comply with the conditions stated at the time you sign the card agreement. In practice, this means not only repaying the outstanding balance, but also interest and any additional fees that may be specified in the agreement.
Who can apply for a credit card for foreigners in Norway?
In theory, any adult who has been living in Norway for at least six months can apply for a credit card in Norway. In practice, however, each bank has slightly different requirements, which may also vary depending on the specific offer.
Most Norwegian banks require a tax return when applying for a credit card. This means that you should not only live but also work in Norway. Of course, the amount of your income and how regular it is are also very important. These will be key when the bank sets your credit limit. Also remember that Norway has Gjeldsregisteret, a register covering all unsecured liabilities, such as consumer loans, retail instalment loans and credit cards. It is largely on this basis that banks make their credit decisions.
How to apply for a credit card in Norway?
First of all, you can check what offer the bank where you already have an account has prepared for you. However, if you want to find the most attractive option, it is worth using an advisor’s help. Thanks to this, you will learn about a variety of offers from several banks. You will be able to match them not only to your financial capacity, but also to your needs. Banks offer many additional services connected with credit cards, including various types of insurance or discounts that can be used for products and services.
Pros and cons of a credit card in Norway
Credit cards have both supporters and opponents. Instead of taking a clear side, we prefer to show you what advantages and disadvantages come with having one. Decide for yourself what matters most to you.
Advantages of a credit card in Norway
- Norwegian banks offer credit cards to foreigners as well.
- A credit card can be obtained through a simple and transparent procedure.
- A credit card can provide important support for your household budget if unexpected expenses arise that were not included in your monthly plan.
- With a credit card, you have immediate access to money, including cash.
- Any credit card can be repaid on an ongoing basis without additional fees by using the so-called interest-free period.
- You can always reduce the credit limit or easily opt out of the service entirely, for example when you plan to take out a loan in Norway.
- Credit cards often include additional services, such as insurance or shopping discounts at selected partner locations.
Disadvantages of a credit card
- A credit card is a form of borrowing, most often with a high interest rate.
- You may lose control of spending if you pay for many expenses with a credit card without monitoring your statements.
- To get a credit card, you must confirm stable income with the bank.
- In Norway, having a credit card can be a burden if you plan to take out a loan. The credit limit granted to you (even if fully repaid) is treated by the bank as your debt, which can significantly reduce your creditworthiness.
Do you have questions or doubts? We will be happy to help! Contact our advisors.
