Austria comes across as a silent and hidden gem in central Europe bounded by three neighboring countries. When people think of rich countries, Austria may not feature in mind but truth be told, you’ll feel the affluence in the air when there. People drive high end cars, live lavish lives and just seem easy with eevrything good in life. Nowonder those aware of what this country has to offer in terms of personal development as well as other attractions will be quick to move there whenever an opportunity comes up. With the mention of affluence and money comes the talk of credit cards in Austria. You definitely need to get a credit card for ease of borrowing and transactions.
For the longest time, Austria hasn’t been accustomed to using credit cards but as digitalisation gets to a fever pitch and in the aftermath of Covid-19 where cash was demurred, credit cards have become a to go to. But just to be on the safe side, aways harm yourself with some cash or a debit card just in case things don’t turn out well where you are in Austria.
Getting started with credit cards in Austria
You probably have a personal reason for preferring a credit card over a debit car or choosing to have both. Actually, well traveled people would prefer to have both and draw the benefits that each of the options provide. For instance, having a credit card will allow you ease of spending borrowed money and actually tracking expenses.
You’ll however realize that certain outlets, especially the Christmas shops may still be more welcoming to payment in cash. But this should not dwarf the beauty and convenience of credit cards especially for someone arriving in Australia as a first timer with no local bank account.
Talking of credit cards use in Austria should actually start from knowing which of the major ones have a wider use in the country. Nobody wants to be inconvenienced by holding a credit card that can only work in just a few payment points.
The good news with Austria is that more and more service providers and sellers accept payment using credit cards. In large cities of Austria, you won’t be completely stranded with a credit card. Of course one premise may refuse your type of credit card or reject credit cards completely but there’s always a next shop that gladly takes credit card payments.
Austrians just like the rest of European countries that initially never wholly welcomed credit card payments have increasingly embraced it. With more security of transactions, Austrians now have more trust that cases of canceled transactions or breach of security won\t happen.
If you are planning to move to Austria as an expat, you will get different financial institutions offering the service. They offer different credit card options from which you can choose. Since Austria is moving towards being a cashless community, credit cards are important companions.
The following are the widely accepted credit card network
- Diners Club
- Raiffeisen Bank
- UniCredit Bank
- Erste BankBAWAG PSK
Credit card use in Austria
It is important to use the right credit card in Austria. The main providers include Mastercard and Visa. They are the ones who are dominated the market. As a consumer, it is important that you choose the right financial institutions. The factors that you can consider when making your choice include monthly limits, interest rates, transaction fees, annual maintenance fees, and benefits.
In making the most out of your credit card, you can track your spending. This is to ensure that you are spending money on the right things, and you are not overspending. Also, make a budget and ensure that you stay within that budget. Please, only spend the amount of money that you are sure you can repay back.
As a credit card user, to avoid paying more money on the borrowed amount, always check when your credit card is due for payment. In short, make your payments on time. On the issue of security, have two factor authentication.
Credit Card Application
Even though the process of making an application for a credit card varies from one financial institution to another, the first step mostly entails filling in an application. You need to fill in your details then submit the application. Mostly, you will get feedback in 7 days.
In certain situations, the process may take long as the issuer will need to check your credit rating and other information. In case your application is accepted, you will sign it then send it back. After a few days, I will then get your card and the approved overdraft.
The benefits that come with possessing a credit card in Austria
Owning a credit card is flexible and convenient. It eliminates the need to carry cash around. Also, if you use it as a mode of payment, it is seamless. You can make payments anywhere anytime unless the place does not accept credit cards.
Moreover, owning certain types of credit cards comes with rewards. As a user, you can get cash back incentives, miles, and points. The rewards can always be redeemed for travel benefits, gifts, as well as discounts.
Owning a credit card also helps you to build your credit history. If you make your payments on time, then it will be a show that you can always pay debts on time. Through that you can get the chance to borrow from other financial institutions.
Safety of Credit Cards in Austria
It is important that you take charge of your credit cards. Otherwise, you may find money missing in your card. To avoid this, you can take varied precautions and one of them is using an ATM in a bank. The reason is because the ATMs that are located in the banks cannot be easily tampered with. Besides, if your credit card is swallowed, then you can easily retrieve it.
Moreover, in enhancing safety, you can have another credit card. An extra one! The backup will help you in case something happens to the main one. For instance, if it gets lost, it means that you can never get stranded. The credit card issuers have also equipped them with advanced security features. They are encrypted and fraud protected.
Credit Card Fees
Interest rate is one of the fees charged when you take out a credit card. Interest rate is the amount of money charged on what you have borrowed. Compared to the other lending institutions such as banks and unions, the fees (interest rates) can be more. Failure to repay can also make one to be in a debt cycle. This is because you will be borrowing Tom to pay Peter and the cycle will continue in case.
Apart from the interest rates fees, you will incur additional fees. For instance, if you do not pay your debt on time, then a penalty will be put. Besides, if you go over the put limit, you will be charged additional fees.
The other fees that you may incur for owning a credit card are monthly and annual fees. Remember, if you are using a credit card abroad, know that you will incur exchange rate fees. This will make it more expensive.