Credit Cards in Germany

Credit Cards in Germany

Germany is one of the most beautiful countries in the world and a top desired destination for many from abroad. Who does not wish to visit the magnificent city of Berlin if only to reconnect with the bad and ugly history of the Berlin Wall. Bet you me, its a great feeling to conjure up such historical facts against the current state to appreciate how far Germany has come. Foreigners who make it to start life in Germany will confirm that aside from a few bad experiences of subtle discirmination, Germany is generally a good place for expats . iNobody will show any aggression to you just because you don’t look like them.

Ideas on which credit cards in Germany works best for you

All that said, I believe anyone who had double thoughts of spending their money or chasing their dreams into Germany can confidently do so. Just grab your luggage, load your credit card, book that long haul flight and glide all the way to Germany. It is waiting for you. Mark you, so many stores, restaurants, retailers accept VISA and Mastercard credit cards which means there can never be aby reasons to worry. The standard of living in Germany is quite high as such you will need to have some credit cards. With credit cards, you will have discipline in your finances. A credit card can work for you whether as a professional worker, entrepreneur, or even a student.

Credit cards come in various forms as such you have to be aware of the best credit cards in Germany. The application requirements might differ from one credit card provider to another. They also come with different interest rates hence it’s important to note those with low-interest rates to save you money.

Getting a Credit Card in Germany

Credit cards are widely accepted in Germany because they are a preferred payment choice. Some situations will prompt you to use a credit card as such it is important to have one. Just like in Slovakia, the requirements for getting a credit card in Germany are basic and the process is quite fast.

Two things will be required when applying for a credit card in Germany. One is your credit score and the other is your permanent residence address. A credit score is critical because the credit card provider must have proof that you will pay your bills without fail. SCHUFA is a German credit agency that provides your credit score. When a credit card company confirms your credit score with SCHUFA, you can be given a credit card.

Different types of Credit Cards in Germany

A credit card is a paramount financial necessity in Germany because of the countless payments it can enable you to make. Besides the fact that this card can help you save additional fees, you are not required to make any yearly fees. Here are the major credit cards used in Germany.

Credit Cards in Germany
With a credit card in your pocket, you can confidently make boss-moves

1. Revolving credit card

With Revolving credit card, you can make a purchase at that very moment but not pay for it. You can choose to pay later whether once or bit by bit. The credit card company goes ahead to gather the money over numerous months. A revolving credit card may seem convenient but it’s costly. Because you make payments in installments, you end up attracting high-interest rates.

2. Prepaid credit card

Prepaid credit card is a great card to have. You have to deposit money early in advance and you can only spend what you have deposited in the account. You can make all kinds of purchases with a prepaid credit card but you cannot spend more than what you have. With this card, you will have discipline in your finances because of limiting your expenses. Besides, it prevents you from spending more than what you have.

Charge credit card

Many people in Germany tend to use the charge credit card. It is quite common because with it you spend while all your spending is recorded throughout the month. After the 30th day, you are charged for all the expenditures. The credit card company will provide you with an invoice for every purchase you made and the amount you owe.

Advantages of having a Credit Card in Germany

Credit cards are essential in our everyday lives because they make payments seem simple. They make life easy. With a credit card, you don’t have to carry bulk cash with you. If you don’t have a credit card you need to consider getting one right away. The application process is also fast as it takes between 5 to 10 minutes to complete an online application. Here are some advantages you will enjoy with a credit card in Germany.

  • Free cash withdrawals – This must be the one thing many people go for a credit card. With this can you can withdraw any amount of cash anywhere in the world free of charge. This is absolutely amazing for any German. No one wants additional fees levied on them and with a credit card, you will enjoy just that.
  • Financial freedom – Credit cards give you financial flexibility which is something we all look forward to. When you have your credit card, you can make payments and carry out any other transaction. The norm of carrying cash with you will be a thing of the past. Also, you do not have to worry about asking money from friends and relatives when you do not have cash. Instead, you can just use the money in your credit card.
  • Acceptability worldwide – Different places in the world have embraced the use of credit cards including restaurants and shopping malls. Having a credit card in Germany is of great advantage because you can use it even outside of Germany. Various business places are equipped with a device for payment hence your card cannot be declined.
  • Convenient secure payment – You will enjoy secure payment when using your credit card. Every transaction made comes with a PIN that you can keep to yourself without sharing. You can also provide extra verification as an alternative that is tied to you only.

Credit Card usage in Germany

As there are advantages to having a credit card in Germany, there are also potential risks that you may face. You must be conversant about the credit card you want to apply for. Do not apply blindly for you may end up facing a lot of risks.

Be wise when using your credit card in Germany. Have a monthly limit. Do not overspend. Always bear in mind the higher cost of whatever payment or transaction you want to make. Extra fees on your credit card can drown you in deeper costs without your knowledge.

In addition, you need to be cautious when sharing your credit card information. Your data should be kept extremely private. Do not disclose to a third party any data especially if the credit card company has not asked for it. Incase your credit card falls into suspicious hands, find out how best to block it immediately.