The Best Credit Cards for Unexpected Spending

When life throws you a small but unexpected financial emergency, a credit card can help. A quick flick of the wrist or a click on the app makes it easy to manage unforeseen expenses without distracting you from the essential things.

This article’ll examine the credit cards available today and which is best for you. Let’s take a look at what the banking sector and other lenders have to offer. Let’s compare credit card terms with an illustrative example if you suddenly need around €500.

What credit cards are there?

Unlike a personal loan, a credit card is geared towards smaller amounts and differs from a fast loan in that it can be used repeatedly. Credit cards have the advantage that purchases or services can be paid immediately without transferring money between accounts.

As the credit industry has evolved with the times, the popularity of contactless payments has encouraged lenders to turn conventional credit cards into virtual ones. The difference is that you don’t feel the virtual card in your hand; you pay for everything with your phone, watch, or ring, for example.

The banking sector’s offer

All banks in Latvia offer their customers the possibility to apply for a credit card if they need one. Of course, it is as easy to use as a regular debit card. However, credit cards have their own nuances, especially if they are offered by a bank with higher requirements.

For example, Swedbank offers 3 types of cards with fees ranging from €1.7 to €17 per month and interest rates of up to 33% per year. The difference between them is that the card with the highest fee includes all benefits such as purchase, travel, and KASKO insurance, as well as a credit limit starting from €2,000.

Credit cards from non-bank lenders

Credit cards offered by other lenders are not very different from bank cards, but a few details differ. For example, non-bank lenders do not usually offer travel, purchase or car rental insurance. Interest rates may also be higher, but the application process is much quicker and more relaxed than with a bank.

Banknote virtual card

The well-known pawnshop Banknote now offers a credit card, regular loans, and loans against collateral. However, you won’t be able to swipe this virtual card with a credit line; it’s only available in your mobile wallet.

Key features of the Banknote Virtual Card:

up to €2,000 available with a repayment term of up to 5 years;
only the amount used is charged, starting from €10, with no other monthly fees;
annual interest rate of up to 54%.

If you are modern and like to pay for purchases with your phone or watch, and sometimes your funds are insufficient, you can use the Banknote offer in the Google Play app. In a few clicks, your new card will be on your phone in minutes.

Different Creditea credit cards

Another non-bank lender also offers a credit card to its customers. Unlike Banknote, they are willing to produce a plastic card for those uncomfortable with mobile payments. Creditea also offers a loyalty program, which Banknote cannot boast of yet.

The main conditions of the Creditea credit card:

up to €7,000 available with a repayment term of up to 5 years;
plastic and virtual card, depending on your preference;
2% cashback on purchases made with the Creditea card.

Creditea tries to reward its customers for using the card, so it reimburses up to €100 per year for purchases made with the card. In addition, a 30-day interest-free period allows you to repay only the amount you spend in the first month. Their fast processing can help you make an urgently needed purchase.

What is important to remember when choosing a credit card?

The main difference between a credit card and a standard payment card is the interest on the amount used. Even if you decide to put money on a credit card, anything you spend over and above this will have to be repaid with interest. This is handy if you don’t have enough money and don’t want to take out a loan.

There are some differences between what banks and other lenders offer. The speed of issuing credit cards and shipping plastic cards to your address are also different. When applying for a credit card, it is vital that you have a reasonable income, a positive credit history, and that you spend as much as you can quickly repay with interest.

How can I shop affordably with a credit card?

Let’s look at an example of how a credit card can help you make an urgent purchase. Take the example of Kati, whose phone unexpectedly broke at the end of the month, and she has only €100 left in her account. Kate works with her phone, so she needs it urgently.

Using her computer, Kate finds a Creditea credit card offer. After reading all the conditions, she plans to save a little and buy what she wants. The phone she chooses costs €600. She decides to take the Creditea card, spend €500 and add €100 of her own money so that she does not have to buy the phone on instalments. As a bonus, Kate gets €10 back from Creditea and buys herself another treat.

The credit card is your everyday ally

Whichever credit card you choose, its purpose is to help you in times of need. Whether in your wallet, mobile, or natural, it gives you peace of mind in case of unexpected expenses. A fast-processing virtual card or a pre-booked plastic card will also be your safety cushion.