Credit Cards in Estonia

Credit Cards in Estonia

Despite its efforts and focus on structural reforms to better the country, residents find it hard to meet all the daily financial demands. With the tight budget for monthly expenditure, unexpected financial demands before salary pay will lead to borrowing. Borrowing is common in Estonia; inadequacy of funds is nothing strange here. Come to think of credit cards. With the well-established banking systems in Estonia, foreigners visiting the country are lucky to use their visas and MasterCard.

A credit card is a plastic card issued by banks or financial institutions. The holder can borrow money, which is repayable with interest charges. In Estonia, the credit cards allow you to make purchases and even pay for goods or services either online or at the store. Also, with credit cards, you can make contactless payments and withdraw cash from an ATM machine.

Should You Expect Fee Deductions When Using Credit Cards in Estonia?

Ignorance of Foreign transaction fees is expensive. Foreigners should expect charges on transactions made in Estonia, which normally cost three percent to non-sterling users. Moreover, these charges are deductions made by your home country on every transaction.

Expect deductions known as cash advance fees in cash withdrawals. Even though the charges are to the rooftop, consider ways of avoiding them. For instance, getting a credit card offering commission-free currency will not cost any extra fee.

Credit card fees include cash advances, balance transfers, interest costs, annual fees, and late fees. The annual fees are charged annually, that is, every year whether you use the card or not. However, remember that some of the firms do not charge annual fees. The other fees mainly apply when you use your card for some action like taking a cash advance.

How to Acquire a Credit Card in Estonia

Acquiring a credit card in Estonia is simple just like in the United Kingdom. The first step involves checking your credit scores. After that, you need to know the different types of interest that you can be subjected to as well as the rewards that you qualify for.

The second step is comparing offers. At this stage, you need to find out the credit card brand that suits you best. Also, you need to pay close attention to interest rates as well as annual fees. You may also consider the ones offering bonuses for new cardholders.

The third step entails filling out an online application. Although requirements may differ from one company to the other, they will basically ask for your financial and biographical information. Some of the common requirements from credit card suppliers include Estonian identification, annual income, balance in your bank accounts, address, and name.

After filling out the application, you can now submit your application. After doing that, you should wait for the decision. The time frame of getting feedback differs but it is mainly within 10 to 14 business days. If the application is approved, you will get your card within 14 working days. After that, you can activate your card and commence making purchases.

Adherence to good credit scores and impressive credit history are perfect. Bad credit records can be a hindrance to approval. Additionally, the applicant must have a steady monthly income or agree on security deposits.

Uses of Credit Cards in Estonia

Many people are anxious about how to use their credit cards in Estonia. Essentially, the use of credit cards is widely accepted in many towns of the country. Places such as tourism areas, shopping malls, centers, hotels, and ATMs accept plastic cards. Although the use of credit cards is universal in Estonia, carrying along some extra cash is good. There are places in the local regions that might disappoint you if dependent on credit cards alone.

You can use a credit card as a way of building your credit history. For instance, if you have a poor credit history, you can apply credit card and pay on time to improve your poor credit history. There are two main kinds of credit cards secured and unsecured credit cards. The secured credit cards need a deposit that is refundable and it is equal to one’s credit limit. Besides, they will be used as collateral. On the other hand, unsecured cards do not need collateral. The reason is that they are given based on one’s creditworthiness.

Furthermore, using a credit card is a good way of earning rewards. Some of the credit cards one can choose from include cashback, airline, hotel, and travel. The kind of card that is right for an individual depends on the rewards that you as a customer want to earn.

As an Estonian resident, you may use a credit card to enhance safety thus, avoiding losses from fraud. In case a scammer uses your credit card, then money will immediately miss in your account. However, if your credit card is fraudulently used, then you will not be out of money. Once you notify your credit card company, you will not need to pay for the transactions that you did not make. Basically, you will get a refund of the money used.

Safety Measures Regarding Use of Credit Cards in Estonia

Even though Estonia is popular as a peaceful and modest country, precautions are essential when using a credit card. One of the ways to guard against credit cards is by being watchful in your belongings. Cases of petty theft such as pickpocketing, bag snatching, and mugging are so common along the streets of Estonia. The thieves often group themselves into small sets ready to execute their plans. Be watchful and always keep an eye on them.

Furthermore, always protect your credit card Pin. When making cash withdrawals, your pin code must be confidential. For instance, dial the pin with one hand as you block the keypads with the free hand. Additionally, protect it from prying eyes and hidden cameras.

Credit Card Providers in Estonia

LHV

Holm bank

SEB

TBB pank

Swedbank