Cashback Credit Cards in Finland

In Finland, cashback credit cards are a smart way for consumers to maximize the value of their purchases. By offering a percentage of spending back to the cardholder, these cards transform everyday transactions into opportunities for savings. Whether you’re grocery shopping, filling up the tank, or dining out, a cashback card can provide financial rewards that add up over time.

We take a look into the best cashback cards available in Finland, highlighting their features, benefits, and how to choose the one that aligns with your spending habits and financial goals. With the right cashback card, every purchase you make can contribute to your financial well-being, turning routine spending into a rewarding experience.

Best CashBack Credit Cards in 2024

The Bank Norwegian Credit Card offers a cashback reward system that provides a straightforward benefit for cardholders in Finland.

1. Cashback Mechanism: Cardholders earn cashback when they use their credit card, where 1 cashback point equals 1 euro.
2. Usage: The accumulated cashback can be utilized to pay off the credit card bill.
3. Flexibility: Users can switch between collecting CashPoints and cashback, retaining accumulated CashPoints when opting for cashback.
4. Accrual Rate: A standard rate of 0.5% cashback is applied to card purchases.
5. No Expiry: Earned cashback does not expire and can be applied directly to the credit card.
6. Annual Cap: Cashback is accumulated up to a total spend of 15,000 euros in a calendar year, a limit that applies collectively to both cashback and CashPoints.
7. Tracking: Cardholders can monitor their cashback accumulation through the mobile app or online profile.
8. Exclusions: No cashback is earned on cash withdrawals, bill payments, money transfers, or purchases from other airlines.
9. Conversion: Users have the option to convert their rewards between cashback and CashPoints, with changes taking effect immediately.

This cashback feature of the Bank Norwegian Credit Card aligns with those seeking tangible rewards from their spending, offering a simple and flexible way to earn money back on everyday purchases.

What is a Cashback Credit Card?

A cashback credit card rewards users by returning a percentage of their spending back to them. This cashback is typically calculated based on the amount of money spent on eligible purchases.

The concept is straightforward: the more you use the card, the more cash you get back.

Here are some key aspects of cashback credit cards:

1. Percentage of Cashback: Different cards offer varying cashback rates, which can range from 1% to 5% or even higher on specific categories or purchases.
2. Eligible Purchases: Not all transactions may qualify for cashback. Common eligible categories include groceries, gas, dining, and travel, but this can vary significantly between cards.
3. Redemption Options: The accrued cashback can usually be redeemed for statement credits, direct deposits, gift cards, or even merchandise, depending on the card issuer’s policies.
4. Bonus Offers: Some cashback cards come with introductory offers, providing an increased cashback rate or a lump-sum bonus after reaching a certain spending threshold within the first few months.
5. Annual Fees: While some cashback cards have no annual fee, others might charge a fee that could offset the benefits if not managed wisely.
6. Impact on Spending: The allure of earning cashback can encourage more spending, so it’s crucial to use these cards responsibly, ensuring that earning rewards doesn’t lead to unnecessary purchases.

Cashback credit cards offer a simple and effective way to earn money back on your regular spending, making them a popular choice for financially savvy individuals in Finland looking to optimize their expenses.

Types of cash back credit cards

Cash-back credit cards in Finland can be categorized based on how the cash-back rewards are structured.

Here are the three main types.

Flat Rate

These cards offer a fixed cash-back rate on all purchases, regardless of the category. For example, a card might offer a consistent 1.5% cash back on every purchase you make. The simplicity and predictability of flat-rate cards make them a popular choice for users who prefer straightforward rewards without having to track spending categories.

Tiered

Tiered cash-back cards provide different cash-back rates depending on the purchase category. For instance, a card might offer 3% back on groceries, 2% back on gas, and 1% back on other purchases. These cards are ideal for individuals who spend consistently in higher cash-back categories, allowing them to maximize their rewards.

Rotating Categories

These cards offer higher cash-back rates (such as 5%) in specific categories that change every quarter. Cardholders may need to activate the offer each quarter to receive the bonus rate. This type is suitable for users who don’t mind keeping track of changing categories and can adapt their spending to maximize rewards.

Choosing the right type of cash-back credit card depends on your spending habits and preferences for managing your rewards. Whether you opt for the simplicity of a flat rate, the targeted rewards of a tiered system, or the dynamic earning potential of rotating categories, there’s a cash-back card in Finland that can align with your financial strategy.

Common bonus categories for cashback credit cards

Cashback credit cards often offer bonus categories where you can earn higher cashback rates compared to general purchases. These categories are tailored to common spending areas, providing an opportunity to maximize rewards on everyday transactions. Here are some of the most common cashback bonus categories:

• Groceries: Many cards offer increased cashback rates on supermarket purchases, making this category particularly lucrative for families and individuals who spend a significant portion on groceries.
• Dining and Restaurants: If you enjoy dining out or ordering takeout, some cashback cards focus on giving higher rewards for spending at restaurants, cafes, and fast-food outlets.
• Gas and Fuel: For those who drive regularly, earning extra cashback on gas station purchases can lead to significant savings over time.
• Travel: This category can include a wide range of expenses, from airfare and hotel bookings to car rentals and public transportation, appealing to frequent travelers.
• Utilities and Bills: Some cards allow you to earn more cashback on recurring payments like phone bills, internet, and other household utilities.
• Entertainment: Spending on movies, concerts, amusement parks, and other entertainment venues can also earn higher rewards with certain cashback cards.
• Online Shopping: With the rise of e-commerce, some cards offer additional cashback for purchases made online, covering a broad range of products and services.

Cashback cards vs. Travel cards

When choosing between a cashback card and a travel card in Finland, it’s essential to consider your spending habits and lifestyle preferences. Here’s a comparison to help you understand the key differences:

• Reward Structure: Cashback cards offer rewards in the form of money back on your purchases, which can be straightforward and versatile. Travel cards, on the other hand, provide points or miles that can be redeemed for travel-related expenses, often offering higher value when redeemed for flights or hotels.
• Bonus Categories: Cashback cards typically have bonus categories that include everyday spending like groceries or gas. Travel cards might offer extra points for travel and dining expenses.
• Redemption Options: With cashback cards, you can usually redeem your rewards as a statement credit, check, or sometimes even direct deposit. Travel card rewards are typically redeemed for travel bookings through the card issuer’s portal or transferred to travel partners.
• Additional Perks: Travel cards often come with travel-specific benefits such as travel insurance, airport lounge access, and no foreign transaction fees. Cashback cards may have fewer perks but are generally more straightforward to use and manage.
• Annual Fees: Travel cards can have higher annual fees due to their added perks. Cashback cards often have no or low annual fees, making them more cost-effective for those who don’t travel frequently.
• Suitability: If you’re a frequent traveler and can make use of the travel perks and rewards, a travel card might offer more value. If you prefer simplicity and flexibility, or if your spending is more domestic and varied, a cashback card could be more beneficial.

Tips for getting the most out of your cashback credit card

To maximize the benefits of cashback credit cards, it’s crucial to use them strategically.

1. Pay in Full: To avoid interest charges that can negate your cashback rewards, aim to pay off your balance in full each month.
2. Know Your Categories: If your card offers higher cashback rates on specific categories, make sure you’re familiar with them and plan your purchases accordingly to maximize rewards.
3. Use as Primary Payment Method: Consider using your cashback card for most of your daily expenses to accumulate rewards quickly. However, ensure you’re spending within your budget.
4. Track Your Spending: Keep an eye on your expenditures to avoid overspending just to earn cashback. Use budgeting tools or apps to monitor your purchases.
5. Sign Up for Bonuses: If your card requires activation for rotating categories or special offers, make sure to sign up each quarter or promotional period to qualify for these bonuses.
6. Redeem Rewards Regularly: Don’t let your cashback accumulate indefinitely. Regular redemption ensures that you’re effectively utilizing the benefits of your card.
7. Review the Terms: Cashback rates, categories, and terms can change. Regularly review your card’s terms and conditions to stay updated on any modifications that might affect your rewards.
8. Consider Multiple Cards: Using different cashback cards for various spending categories can maximize your overall rewards. Ensure you can manage multiple cards responsibly before adopting this strategy.