Cashback Credit Cards in Sweden

Choosing a good cashback credit card in Sweden can enhance your spending efficiency by returning a portion of your expenditures directly to you. These cards offer a straightforward way to earn back cash on your daily purchases, from groceries to gas and dining out.

We take a look at the top cashback credit cards available in Sweden, detailing their rewards, features, and selection strategies to match your spending patterns. With the right cashback card, each purchase brings you a step closer to optimizing your financial savings.

Best CashBack Credit Cards in 2024

Bank Norwegian’s Cashback Credit Card allows you to earn cashback on your purchases, providing a flexible rewards system. With this card, you receive 0.5% cashback on your purchases, which can be used to pay down your credit card bill. The cashback earned is equivalent to SEK, with 1 cashback point equaling 1 SEK.

Key features include:

• Easy earnings and straightforward redemption process.
• Ability to switch between cashback and CashPoints at any time.
• Cashback is not earned on cash withdrawals, bill payments, currency purchases, airline purchases, or when exceeding 100,000 SEK in a calendar year.

The cashback can be tracked and managed through the Bank Norwegian app. It’s designed to provide flexibility, allowing you to reduce your outstanding credit card balance. The program has an annual cap of 100,000 SEK for both cashback and CashPoints. This system suits those who prefer cash rewards over travel-related benefits, offering a practical way to save on everyday expenses.

What is a Cashback Credit Card?

A cashback credit card is a type of financial tool that rewards you with a percentage of the money you spend back in the form of cash. This reward system is designed to incentivize users to use their credit card for purchases, offering tangible financial benefits directly linked to their spending. Here’s a more detailed look at cashback credit cards:

Earning Cashback

When you make purchases with a cashback credit card, a certain percentage of the amount spent is returned to you. The rate at which you earn cashback can vary by card and sometimes by the type of purchase or spending category.

Every time you use a cashback credit card for purchases, you earn a percentage of that spending back in cash. The specific percentage can vary based on the card’s terms and may differ across various spending categories. For example, a card might offer 2% back on all purchases but 3% on groceries and fuel.

Redemption

The cashback you earn is typically accumulated in your credit card account. You can redeem it in various ways, depending on the card issuer’s policies, such as statement credits, direct deposits, or even as points.

The accumulated cashback can often be redeemed in several ways: as a statement credit that reduces your credit card balance, directly into a bank account, or sometimes even for gift cards or purchases at specified retailers. The flexibility in redemption adds to the card’s appeal, offering you the freedom to use your rewards as you see fit.

Bonus Categories

Many cashback cards enhance their appeal by offering increased cashback rates in specific spending categories.

These categories might include everyday expenses like dining, groceries, or transportation. Some cards have static bonus categories, while others rotate them quarterly, requiring you to activate the bonus each time.

Sign-up Bonuses

Many cashback cards feature sign-up bonuses, offering a substantial initial cashback reward if you meet specific spending thresholds within the first few months of card ownership.

This initial boost can significantly increase the card’s value in the first year.

Fees and Interest

While the benefits of cashback cards are clear, it’s vital to consider any associated costs, such as annual fees or interest rates.

If you’re someone who doesn’t pay off your balance in full each month, the interest charges could negate the benefits of the cashback earned.

Impact on Spending

The prospect of earning cashback can be enticing, but it’s crucial to maintain responsible spending habits. The goal is to earn cashback on purchases you would make anyway, rather than spending more just to earn rewards.

Responsible use ensures that the cashback you earn is a true benefit, not a lure to overspend.

Tips for using cashback credit cards

To maximize the benefits of your cashback credit card in Sweden, it’s essential to use it strategically. Here are some tips to help you get the most out of your card:

1. Pay in Full: Avoid interest charges that can negate your cashback rewards by paying off your balance in full each month. This way, you benefit from the cashback without accruing additional costs.
2. Know Your Categories: If your card offers higher cashback rates on specific categories, be aware of these and plan your spending to take advantage of the increased rewards. Keep track of any rotating categories and activate them if required.
3. Use as Primary Payment Method: To maximize rewards, use your cashback card for most, if not all, of your daily transactions. However, ensure that this spending aligns with your budget and avoid unnecessary purchases just to earn cashback.
4. Monitor for Special Offers: Some cards offer limited-time bonuses or higher cashback rates on certain categories or merchants. Stay updated with your card’s offers and take advantage of these when they align with your planned spending.
5. Combine with Other Rewards: If you have multiple rewards cards, strategize your spending to use each card where it offers the most benefit. For example, use one card for groceries if it offers higher cashback in that category and another for fuel.
6. Redeem Rewards Regularly: Don’t let your cashback accumulate indefinitely. Regular redemption ensures you’re effectively reducing your expenses. However, check if your cashback expires and plan your redemptions accordingly.
7. Review Annual Fees: If your card has an annual fee, ensure that the benefits you’re getting outweigh the costs. It might be worthwhile if you earn enough cashback to cover the fee and more, but if not, consider a no-fee alternative.