Bonus : Credit Cards
Credit Cards can offer a range of rewards to customers such as airlines miles, cashback on purchases (small percentage of the amount is returned to you like for instance 0,5%) or insurances. Using Credit Cards for daily expenses can be a part of your daily expenses saving strategies in some countries. A very attractive offer, so why does not everyone use them?
History
The most common cards in Denmark are those called "Debit Card" or "Dankort", where the money is directly debited from your bank account. Credit Cards, on the other hand is borrowed money until the due date, which usually is the end of the month. This can become dangerous if you live paycheck to paycheck or have a record of beeing in debt, since you won't notice your daily expenses directly your bank account and might be in for a suprise at the end of the month that now you owe thousands of DKK. Moroever, you are basically taking out a "quickloan" if you fail to pay the credit card provider, since interest rates can be a staggering 20% per year. Hence, only use Credit Cards with clear concience and remeber to incalculate your debt when you're looking at your bank account.
Meanwhile, Credit Card providers also make a lot of money in some countries like the USA. Here, they can charge the shop a staggering 2% (not you) for each transaction, called interchange fee. That's why they are happy to give you all these rewards to make you spend more. In Europe, this is capped at 0,2% by the 2016 Regulation on interchange fees to prevent shops offloading additional fees on you to cover credit card interchange fees. Due to this fact, high rewards as you might have heard of in the USA or other countries do not really exist in Europe, especially in Denmark since we on top of that have the Dankort.
Dankort is Denmark's own payment card without any incetivising practices such as insurance and rewards, with transaction fees lower than 0,2%. "Forbrugerrådet Tænk", an independent consumer organization that works to promote consumer rights, actively fights for the preservation of Dankort, something Financial Institutions have less of an interest in since they are not making a lot of money on them.
All of this makes Denmark an uninteresting market, with minimal competition for Credit Cards with reward programs. Just ask any danish person, most of them have only a Debit Card or Dankort and don't even know about Credit Cards with rewards.
Credit Cards in Denmark
That said, there are however some few Credit Cards with rewards like airlines miles, cashback on purchases or insurances in Denmark.
Many danish banks offer premium credit cards, mainly a Mastercard Gold (Danske Bank, Nykredit, Nordea, ...), with a yearly price of up to 800 DKK depending on your customer status, that only gives you a travel insurance. Most also have a Platinum Mastercard, costing 1.500 DKK/year with better travel insurance coverage and airport lounge access.
However, there are also completely free alternatives, that offer similar services. We'll mention them soon in the comparison below.
Airline Rewards Cards
In Denmark, there are only two airline rewards Credit Cards at your disposal:
- Bank Norwegian Credit Card (Free)
- SAS EuroBonus Credit Cards:
- Lunar EuroBonus Credit Card (39 DKK/month)
- SAS EuroBonus Mastercards:
- Basic: 35 DKK/month
- Premium: 195 DKK/month
The SAS EuroBonus Mastercards a bit more, but they have monthly fees and no insurances like you get with the Bank Norwegian Credit Card.
If you don’t fly with SAS often, the Bank Norwegian Card is the better choice. For every 133 DKK you spend, you get 1 Norwegian Cashpoint, worth 0.63 DKK.
You’d be missing out if you didn’t take advantage of the free Bank Norwegian Credit Card to earn free travel rewards and insurance perks.
Comparing Credit Cards
Considering all of the above options, let's compare them.
We're using Nordea Mastercard Gold for comparison, but it should be noted that the offering may vary from Bank to Bank. For instance, Nordea Mastercard Gold insures you worldwide, whereas Danske Bank Mastercard Gold only covers Europe. It's advsiable to check your banks insurance policies.
| Bank Norwegian | Lunar | Mastercard Gold (Nordea) | Circle K EXTRA Mastercard | |
|---|---|---|---|---|
| Description | In partnership with Norwegian Airlines, Bank Norwegian provides Credit Cards, saving accounts and loans only. Bank Norwegian is a supplementary bank as it lacks normal bank accounts like NemKonto. | A 100% digital bank, providing most services as traditional banks and more, except large amount loans. Lunar doesn't actually offer any Credit Cards, but only Debit Cards with similar rewards to Credit Cards. | Many traditional Banks offer the Mastercard Gold Credit Card, which is a premium Credit Card beside free offers of Visa Debit or Dankorts. | EXTRA is Circle K's reward program, with cashback and savings on fuel. The optional Mastercard gets you additional perks such as insurances. |
| Price | Free | All below listed conditions are only available for Plus (69 DKK/month) or Unlimited subscriptions (139 DKK/month) | Up to 800 DKK/year depending on your customer status and bank. | Free (both EXTRA reward program and Mastercard) |
| Cashback | • 0,5% on normal purchases Can only choose one: Cashback or Airline Miles Rewards) | ❌ | ❌ | • 0,13 - 0,30 DKK per liter fuel when tanking at a Circle K gas station • 0,5% on normal purchases (excluding tobacco, games, value cards, over-the-counter medicine, cash withdrawals and purchases at other petrol companies in Denmark) |
| Airline Miles Rewards | • 0,5% on normal purchases • up to 20% on Norwegian Airlines purchases Can only chose one: Cashback or Airline Miles Rewards | Only with their "SAS Eurobonus Card" costing an additional 39 DKK/month | ❌ | ❌ |
| Airport lounge access | ❌ | ❌ | ❌ (only with Mastercard Platinum) | ❌ |
| Travel Insurance | ✔️ (Provided by Tryg) | ✔️ (Provided by Tryg) | ✔️ (Provided by Tryg) | ❌ |
| - Terms of service | At least 50% of the journey's transport costs have been paid with your Bank Norwegian credit card. If you are traveling in your own car, at least 50% of the travel expenses (fuel, ferry, accommodation, etc.) must be paid with the card | 60% of Hotel and Flight/Train, or 60% of the total transport and travel expenses (fuel, ferry, accommodation, etc.) when traveling in your own car must be purchased with a Lunar payment card. | Flights and package tours must be paid for with your Nordea Gold Master card to be covered by the insurance. For other journeys, it is not a requirement that the journey must be paid for with the card. | ❌ |
| - Covers | • International trips, but not in the country of residence (e.g. if you live in Norway, it does not cover in Norway) • Business trip • Partially covered: Professional sports played against payment are only partially covered. Cover is transport to and from the travel destination as well as during the stay as a private person. | • International trios, but not on holidays in Denmark. | • International trips, also in Denmark if the journey has a minimum of 3 nights. • Business trips • Partially covered: Professional sports played against payment are only partially covered. Cover is transport to and from the travel destination as well as during the stay as a private person. | ❌ |
| - Covers NOT | • Expedition trips in e.g. polar regions, the ice sheet on Greenland and the northernmost part of Canada | • Business travel. Days off between days of commercial work are considered business and are preferably not covered. • Expedition trips in e.g. polar regions, the ice sheet on Greenland and the northernmost part of Canada • Professional sports played for a fee | • Expedition trips in e.g. polar regions, the ice sheet on Greenland and the northernmost part of Canada | ❌ |
| - Excess per reported damage (DK: Selvrisiko per skade) | 1500 DKK (Flight delays, Lost baggages, Emergency Dental treatments, Permanent injury compensations and Accident, Injury or Death compensations are excluded) | 500 DKK | 300 DKK - 2.500 DKK depending on the damage type | ❌ |
| - Maximum covered travel duration | 45 days | 30 days | 90 days | ❌ |
| - Hospital stay and treatment | ✔️ | ✔️ | ✔️ | ❌ |
| - Home transport as a result of an acute illness or injury | ✔️ | ✔️ | ✔️ | ❌ |
| - Permanent injury compensation (DK: rejseulykke | Up to 500.000 DKK/person | Up to 300.000 DKK | ❌ | ❌ |
| - Accident, Injury or Death compensation | Up to 400.000 DKK/person | Up to 200.000 DKK/person | ❌ | ❌ |
| - Lost Luggage | 2.000 DKK/day (max 2 days) | 1.000 DKK/day (max 3 days) | 6.000 DKK per person or 12.000 DKK in total | ❌ |
| - Personal belongings (Theft, damaged baggage,...) | Max 20.000 DKK per person or 45.000 DKK per damage | Max 10.000 DKK for everything | Covers a lot with high values, but not damaged baggages. | ❌ |
| - Liability insurance | If you incur damage to furniture or building part in a rented hotel room or holiday home. | |||
| - Who is insured | Card holder + Spouse/cohabitant/registered partner and children + up to 3 fellow travelers who must first be indicated in the event of damage. | Card holder + Spouse/cohabitant/registered partner and children, not other fellow travelers. | Card holder + Spouse/cohabitant/registered partner and children, not other fellow travelers. | ❌ |
| - Flight delay (Excludes cancelled flights which usually are compensated by the airlines) | After 4 hours, covers expenses up to 1.000 DKK per person or 2.000 DKK in total. | ❌ | After 4 hours, covers expenses up to DKK 6.000 in total. | ❌ |
| - Flight cancellation (You cancelled the flight, not the airline) | In case of illness or death of a family member, up to 25.000 DKK in total, but with an excess (DK: selvrisiko) of 500 DKK. | In case of illness or death of a family member, up to 10.000 DKK in total (only for Unlimited customers). | In case of illness or death of a family member, up to 15.000 DKK in total. | ❌ |
| - Covers Ski Holiday | ✔️ | ✔️ | ✔️ | ❌ |
| - Emergency Dental treatment | Up to DKK 6.000 DKK (does not cover specialist dental treatment, crowns, root canals and the like.) | Up to DKK 8.000 DKK with a 500 DKK excess (DK: selvrisiko) (does not cover specialist dental treatment, crowns, root canals and the like.) | Up to 10.000 DKK in total. | ❌ |
| Car rental excess insurance (Some car rentals can charge thousands of excess (DK: selvrisiko) in case of a damage) | Must be additionally purchased for 349 DKK/year. Then, up to 20.000 DKK per damage. Rental must be paid with Bank Norwegians Credit Card. Covers any global rental for periods up to 31 days. | ❌ | Up to 10.000 DKK per damage. Rental must be paid with the Mastercard Gold Credit Card, and only covers rentals during travel. | Up to 20.000 DKK per damage or 40.000 per year. Rental must be paid with Circle K Mastercard. Covers rental periods up to 21 days and only covers rental outside of Denmark. |
| Mis-fueling insurance (Filling a car with the wrong fuel) | ❌ | ❌ | ❌ | Up to 5.000 DKK when the mis-fueling happened at a Circle K gas station in DK, SE and NO and was purchased with the Circle K Mastercard |
| Foreign exchange fee | 1,99% | 0% (Free for Plus and Unlimited) | 0,5% for European Currencies1,5% for all others | 2% + any Mastercard surcharges |
| Interest rate for late payments | 22%/year | 0% (Since it's actually a Debit Card and the amount is directly charged from your Lunar Bank account) | 15%/year | 23%/year |
How to Maximize Airline Rewards Cards
1. Use Credit Cards for Everyday Expenses
Pay for groceries, fuel, and other daily expenses with a rewards card like the Bank Norwegian Credit Card. This way, you’ll earn points or cashback on purchases you’d make anyway.
2. Book Flights and Travel with Rewards Cards
Even if you’re not flying with Norwegian Airlines, using the Bank Norwegian Credit Card to pay for flight tickets gives you free global travel insurance, something that otherwhise could cost thousands depending on destination and duration.
3. Fund Investments with Rewards Cards
Some platforms like Saxo (but not Nordnet) allow you to fund investment accounts with credit cards, instead of Bank Transfers. For example:
- Adding 5.000 DKK to your Saxo account earns 25 CashPoints.
- If you invest 100.000 DKK over time, you could earn enough points for a free airline ticket!
Final Recommendation
For the best combination of savings and rewards, get the Bank Norwegian Credit Card. It’s free, offers travel insurance, and earns you airline miles or cashback. Start using it for daily expenses and even investments to maximize your rewards.
With smart use, you could save or earn thousands of DKK per year!