Credit Cards in the Netherlands

Credit Cards in the Netherlands

Frugal living is a survival tactic for coping with life in the Netherlands. Dutch culture is debt-averse. Furthermore, they believe in doing things practically and modestly especially; when it comes to handling funds. In addition to that, the Dutch believe in spending what they have. However, even in with that, there are some instances where people need credit cards in the Netherlands.

Notably, many schools in the Netherlands implement financial literacy programs to teach kids to spend responsibly from a young age. Credit cards are acceptable in the Netherlands at hotels and tourist destinations. However, supermarkets rarely accept cards. Unlike many European countries like the United Kingdom, using credit cards in the Netherlands is unpopular.

In the Dutch retail space, MasterCard and visa are the most conventional. Although American Express is accepted, its use is limited to major retailers with an international client base. It is advisable to have a credit card, especially for Dutch who frequently travel, because it pays for flight tickets and gives more consumer protection than other payment methods.

Basic Requirements for Application of Credit Cards in the Netherlands

To begin with, you must be above 18 years old with an identification card as proof. Similarly, you should be living in the Netherlands and working. If you are not working, it will be difficult to convince the providers that you will repay back the money used. However, for foreigners, an additional document of a permanent residence address is essential for approval.

It would be best if you took note of the National Credit Register (BKR). The reason is that for you to get a credit card from any provider in the Netherlands, you should be creditworthy. Importantly, all the credit card providers in the Netherlands are keen to check on the capability of the borrower to repay. Having the requirements in place, you can get started on the application process.

Popular Credit Cards Providers in the Netherlands

There are different companies providing credit cards to the Dutch. The requirements needed before approval also vary from one firm to the other. The following are some of the popular providers:

ABN AMRO Gold Card

ABN AMRO Gold Card is necessary for cardholders who are frequent travelers. It offers insurance on purchases made within 365 days against theft and damage. However, such losses cost 50 Euros, deductible from the card.

Moreover, the insurance only works for residents of the Netherlands. Similarly, it offers a delivery guarantee for all purchases made online or through financial institutions. In case of a failed delivery, the insurance refunds the money within 30 days. Even though this card insures you against delayed flights and theft on your purchases, it will not be accountable for trip cancellation and stolen luggage.

Another card by the same provider (ABN AMRO) is the ABN AMRO Student credit card which works almost like a gold card. ABN AMRO Student cards credit cards give insurance for purchases made within 180 days. Furthermore, using this card, you can rent a car. It is wise to know that you have to pay for the loss in case of an accident or damage within the renting period. For instance, the cost of damage is deductible from your card. Similarly, the card pays for festival tickets.

Revolut MasterCard

A card and digital banking app help you spend and manage money at minimal costs. Revolut MasterCard is an excellent option for cardholders who like traveling because there is nothing like a currency exchange fee. Moreover, the card offers a grace period of 62 days without interest charges on your purchases. The grace period applies to cardholders who repay their balances in time before the next month.

The good news is that you can control your card and account successfully through the Revolut app. The Revolut app helps in locking and unlocking the card. Additionally, the card feature aids in setting preferable monthly spending limits. The spending limits help control expenditure and improve saving habits.

Furthermore, through Revolut’s Vault feature, you can save towards short-term goals by building up funds regularly. Many parents are running for Revolut MasterCard because of Revolut junior feature. Revolut junior is a platform for parents or guardians willing to manage their child’s spending. Furthermore, Revolut junior is a sub-account within the app aimed at children between 7 to 17 years old. 

ICS Go Card

The ICS Go card offers secure card payment at hotels and car rentals globally. Besides, insurance against theft and damage on purchases made within 180 days is another benefit. In cases of failed deliveries on online purchases, the card ensures a delivery guarantee, which is refundable after 30 days of sending the request to the merchants involved. Knowing that you must deposit money to get started before using the ICS GO card is essential.

The Benefits of Having a Credit Card in the Netherlands

First, credit cards are beneficial because of the rewards. Some of the rewards offered include shopper loyalty points anytime you shop or air miles. Also, as a credit card user, you may sometimes get cashback on the purchases that you have made.

Secondly, a credit card enhances satisfaction. As a credit card owner, you do not have to worry about the amount of cash you have. For instance, you may go for a trip and not worry about paying for anything when the cash you had run out because you can use a credit card as an alternative.

Furthermore, in a way, it can improve your credit score. As a responsible user of credit cards, lenders may notice you and this will help you improve your credit score. In the future, lenders may even give you a high amount of money because they know you always pay back.

Lastly, in the Netherlands, most credit card providers provide a 0% interest period. All you must do is ensure that you make a minimum monthly repayment as set by the provider. In short, it means that one can borrow free of charge.