The credit card as a means of payment is of course a practical helper, but it is important that you do not simply accept the next offer that is offered to you. If you do not bother to check certain things before submitting the application, you can also pay for it with a credit card and then have to pay a tuition fee, which would not have been necessary. The credit card market is large and since many of the cards can already be obtained online today, it often takes just a few clicks to complete the application. If you don’t take the trouble to check a few points, you will quickly notice that you are putting your foot in it.
With a credit card, not only the annual fee plays a role
even if this is suggested to the customer. Anyone who reads that a card is available free of charge will be happy to grab it and forget to take a look at the other conditions. But precisely these conditions can quickly cause a broken leg in the financial area. But where does a credit card actually cost money? What many do not know, the following points can cause high costs:
- Cashless payments abroad
- Withdraw cash
- annual fees
- Use of a partner card
- Loss of card
It is therefore particularly important to have these conditions in mind before signing a contract. If you are looking for a credit card, you should find out about the fees involved and compare different offers. In this way, it is possible to permanently save fees that you might not have noticed at first glance. The bad awakening often comes with the first billing, which can be higher than expected.
Why fees are to be expected
Anyone who previously thought that cashless payment with a credit card is free of charge was mistaken. Not only abroad, but also at home costs may well be incurred. This is especially the case if something has bought in a foreign currency. So if you order online abroad and want to pay the costs by credit card, you may have to expect additional costs here.
Since the credit card is particularly popular when on vacation, it should also be borne in mind that costs are also payable when withdrawing cash. Within Germany, these costs average up to USD 7.50 per withdrawal. However, if you withdraw cash in foreign currency abroad, you still have the problem that in addition to the cost of the withdrawal, there may also be costs for the conversion.
Another point is the annual fee. Is this free of charge?
Then better take a closer look here. Perhaps it is only free of charge because the credit card company demands a certain annual turnover. If this is not adhered to, additional costs can quickly arise. The conditions of the provider determine whether annual turnover is necessary. Sometimes only the first year is free, which is not always clear from the offer. In the second year of using the credit card, the surprise is great when an amount is suddenly debited from the account.
It is not the case with every credit card that the entire amount used is debited once a month. Payment in installments is also possible in some cases. Sounds good? But not always, because the debit interest on a credit card is significantly higher than that of a classic loan. Interest rates in a double-digit range are not uncommon and provide a surprise when the installments are paid off gradually, but the amount used does not decrease by the same amount.