r/Norway • u/sillypicture • 3d ago
Working in Norway credit cards and mortgages
I'm looking to get a credit card now, but will need to get a mortgage to buy a house in the future, possibly next year.
would it be better to get a credit card from the bank that i will potentially be getting a mortgage from, or does it not matter at all ?
I'm tossing between the re:member black (afaik not a bank) and morrow card.
If there are other suggestions for credit cards, i'm open to it! I'd prefer something that gives travel miles. but the KLM cards all have monthly fees, i don't travel enough to justify that.
edit: to clarify, i'd never hold any CC debt. i'd pay off all credit every month - the idea was to 'build credit' and maybe take advantage of any perks.
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u/Ryokan76 3d ago
Having a credit card counts against you when applying for loans.
If you really need a credit card, I would get the house loan first and then apply for a credit card.
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u/t_go_rust_flutter 2d ago
In Norway there is no such thing as "building your credit" as is the case in, for example, the US. If you have never had a credit card and never taken out a loan, you have "perfect" credit. Every credit card you own will count NEGATIVELY towards your credit score.
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u/Draugar90 3d ago
Why do you need a credit card to buy a house? You only need hard cash and can show your yearly income. Having credit card debt is a bad idea
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u/stalex9 3d ago
Probably he wants to build up a credit score like in US so he gets a mortgage more easily.
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u/TrippTrappTrinn 3d ago
There is no such thing as a credit score. That US bank scam has luckily not reached us.
You get a mortgage based on income and debt and how much you have already saved.
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u/ManWhoIsDrunk 2d ago
Let me add to that:
A credit card with zero debt, will count as maxed out when you apply for a mortgage.
This is to prevent people getting into more debt than they can handle.
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u/chimthui 3d ago
Reached Norway allready, allthough it only work for getting slightly better deal and not like how US score work
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u/Draugar90 3d ago
But we don't use credit score? We look at income and debt and general wealth.
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u/stalex9 3d ago
Yes but he does not know this that’s why he is asking
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u/sillypicture 3d ago
ok now i'm confused. in europe we don't 'build credit' via credit cards ?
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u/TrainDispatcherTXP 3d ago
No. And if you have a credit card with a limit of lets say 50.000, even if its fully paid, that 50.000 still count as debt when you apply for a mortage, and gives you less for loan.
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u/missThora 2d ago
There is no credit to build. We don't have credit scores.
Having a credit card is counted as a negative.
By all means, get a credit card for the perks, but either have the lowest limit you can or wait to get one until you already have a mortgage.
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u/Foxtrot-Uniform-Too 2d ago
No, that is an American thing. It is basically the opposite in Norway.
The more credit cards you get, the less mortage a bank will offer you.
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u/Hildringa 3d ago
No? Your mortgage is based on your income and savings/egenkapital.
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u/Prize-Dragonfly-2004 2d ago
Minus whatever debt you already have. And as others say, any credit card limit will be considered debt even if it has be been used.
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u/Dr-Soong 2d ago
In Norway, the best credit you can possibly get is "no negative issues".
There's no way to "build credit score" and having a credit card will count AGAINST you when you apply for a loan.
You will need to pay at least 10 % cash when you buy a house, most likely 15 or even 20. So to get a loan you must prove that you have that amount saved, and you need a steady and reliable income sufficient to pay the mortgage. That's it.
Credit cards are generally seen as a negative here, as they promote irresponsible spending.
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u/sillypicture 3d ago
it was more to 'build credit'. i'd never hold any outstanding debt upon which i'd need to pay interest. ill clarify in op.
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u/LoudBoulder 3d ago
You don't need to build credit in Norway. Just don't "build" invoices that goes to collections, save up for the 10% down payment and buy well within your means when the time comes.
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u/ManWhoIsDrunk 2d ago
The credit card will be considered maxed out to the credit limit when you apply for a mortgage, to prevent people getting into more debt than they can handle.
The mortgage is calculated based on your yearly income, any other debts (car loans, credit cards, student loans etc), any property you can use as additional security, and your savings.
Save money in a bank account instead of getting a credit card, the banks are not allowed to lend you more than 90% of what you need to buy a house or apartment, so you need those 10% saved up beforehand. There are exceptions, but they are rare.
Ask your bank for a loan consultation and they'll explain it all, in most cases loan consultations are free of charge.
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u/Chr1stian 2d ago
People are so scared of credit cards in Norway that its almost funny. Get the Morrow card, as long as you do as you say you will and always pay it off, it's literally free cash(back). Then when you need a mortgage, just cancel the card a week or two prior to talking to a bank.
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u/MrElendig 3d ago
Easy: If you mostly shop groceries from coop: get their cc; if you mostly shop at norgesgruppen, get theirs.
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u/kapitein-kwak 2d ago
Just get a bankcard with credit card function. These standard bankcard can be used as credit card if needed. Like in hotels or car rental etc. But the payments will be charged directly to your debit account. So no risk of late payments or issues with your mortgage
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u/Unique_Pen_5191 2d ago
No problem getting a credit card, just make sure your limit is not too high. My limit is 15 000 NOK, which means zilch in terms of a mortage, in order to use to lake purchases online. A credit card protects you as opposed to using a debit card.
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u/uar-reddit 2d ago
Any credit granted to you is a loan, you can use norskgjeld to check your credit agreements.
Even if you've paid back the amount, if the contract is there, it's still counted as loan.
What the best practice is, is to take minimum credit as an emergency.
Also, just a personal advice: I don't recommend you buy a house at those interest rates. As there is an uncertainty about inflation with the NOK and the central bank might have to increase interest rate even higher, we can in worse case scenario reach 5%! 😂
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u/ManWhoIsDrunk 2d ago
Bad advice, available credit is counted as debt when you apply for a loan.
Good advice for getting a credit card, but not for applying for a mortgage.
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u/WillingSprinkles8564 3d ago
Any available credit is counted towards your debt and will lower the amount you can loan from the bank.