Best free credit card: What do I need to know?

What are the different types of credit cards?

There are several types of credit cards. They differ largely in the timing of the charge. If you have a VISA Debit Card or MasterCard Debit Card, the money is debited from your account immediately, similar to your checking card. However, there are also prepaid credit cards. With the prepaid credit card, you have to load it before using it. Here you have the advantage that a prepaid credit card can be issued to all customer groups. That is why they are often called credit card without Schufa or credit card for minors.

The last widely used type of credit card is the “real” credit card or credit card called. Here your bookings are collected and debited from your account once a month. Once again, it is necessary to distinguish between two types of credit card. Namely between the credit card with basic fee and the credit card with interest. With the credit card with basic fee you pay, as the name suggests, only a basic fee, which remains the same regardless of the use of the credit card. In the case of the credit card with interest, you are granted a credit, which normally accrues interest until the time of the debit. Sometimes there is still the possibility to pay the credit card in installments.

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Which credit card for students?

Which credit card is best for students depends entirely on the student’s particular life situation. If you have income, for example, by working as a student trainee or part-time jobs, you may have chances to get a credit card with a credit line. Many direct banks also offer a credit card directly with the current account. Here it is mostly a debit card, but you can also use it for almost all purposes of the normal credit card. Only if you want to rent a car with the debit card, a traditional credit card would be advantageous.

What is the advantage of a prepaid credit card?

The biggest advantage of a prepaid credit card is that it is easy to apply for. You can get a prepaid credit card even without SCHUFA and without income. Even if you are still a pupil or student, there is the possibility for you to get a credit card. In addition, a prepaid credit card can be used, for example, as a parent to easily teach his children how to handle money.

What is the difference between a normal and a golden credit card?

The difference between the “normal” credit card and the gold credit card are mostly the additional services such as insurance. Most normal credit cards do not include insurance, but only provide you with the basic functionalities of a credit card. In Germany, the additional services of credit cards are mostly aimed at frequent travelers. For example, the gold credit card includes a foreign travel health insurance or travel cancellation insurance.

What can a black credit card do?

A black credit card is often a premium credit card of certain providers. Here, special additional services such as a concierge service or access to airport lounges are often coupled with the credit card. However, premium credit cards are often linked to admission conditions. Sometimes you have to pay an entry fee in the 5-digit range or make a certain turnover per year with your credit card. For example, with the probably best-known premium credit card of the black American Express, you have to pay 4,000€ for admission and 2,000€ - 2,500€ per year.

What is a business credit card?

The term business credit card is ambiguous. On the one hand, a business credit card can be described as a credit card that is issued in the name of a company. Also, some employees get a credit card for expenses, which could also be called a business credit card. However, both variants of the credit card have one thing in common: as an employee, you do not pay the credit card bill if you use it legitimately.

What should the best free credit card bring to the table?

If you want the best free credit card in your wallet, make sure that there are no fees at all. You should also be aware of high interest rates. Sometimes the providers promise zero fees but try to come back at you with a bit higher interest rates compared to their competitors.

Security: How secure is a credit card?

How secure is my credit card?

The credit card is considered a secure means of payment. First of all, if you lose it and report it immediately, you are limited to 150€ in damages. In addition, you can reclaim transactions that were made with your credit card. The security of credit cards will improve even more in the near future with the mass distribution of MasterCard SecureCode and Verified by VISA.

Who is liable for credit card loss?

If you lose your credit card, you should have it blocked immediately. If you block your credit card immediately, your liability will be capped at a maximum of €150. If you do not have the credit card blocked immediately, gross negligence can be argued and you could possibly be liable for any damages incurred.

Where is the credit card verification number?

You can find the credit card verification number on the back of your credit card. It is the three-digit number usually next to your signature and is used to verify your information when making a purchase online. Nowadays, the confirmation of a transaction is also often done by the so-called Verified by VISA or MasterCard SecureCode.

What is the CVC?

The CVC is the verification code of the MasterCard. CVC stands for Card Validation Code. With the CVC you legitimize yourself as the owner of the card. When buying goods online, you need it to prove that you really have the card in your hands. The verification numbers for credit cards have recently been replaced more and more with more secure legitimation methods. With these, for example, you still need to enter a PIN, which is sent to your cell phone, online to trigger a payment. Offline, a PIN is usually requested to make sure you are the rightful owner of the card.

What is Verified by VISA?

Verified by VISA is a new verification method for credit card transactions. Here, a PIN is sent via SMS to a stored cell phone number. It is a two-factor authentication, which will become more and more important in the future due to its higher security.

What is MasterCard SecureCode?

MasterCard SecureCode is the name given to two-factor authentication for MasterCard credit cards. In the past, it was common for purchases made with MasterCard to be verified using the CVC code. Nowadays, this verification is also often carried out by MasterCard SecureCode, or Verified by VISA. In this procedure, you receive an SMS with a PIN on your cell phone. With this PIN, you then release the transaction and complete the purchase.

How do I apply for a credit card?

There are many ways to apply for a credit card. Often, so-called “debit cards” are issued with the checking account. With debit cards, the money is immediately debited from your account. You can also apply for a real credit card at most banks. These are usually issued by VISA or MasterCard. Whether you get a credit card depends largely on your credit rating. If you have a good credit rating, chances are high that you will get a real credit card from any bank.

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Who can apply for a credit card?

Due to the numerous versions of the credit card, there is a credit card for everyone. Even people with a low credit rating or minors can enjoy a prepaid credit card.

However, you may only apply for a credit card for your own account. If you do not apply for a credit card through your house bank, you must prove that you are the legal owner of the account from which the bookings are then to be made.