With a credit card you can pay for goods and services at home and abroad. In addition to real personal and business life, you can also use the credit card for online money transactions. Often credit cards are required when booking a flight or when ordering goods from the internet. Here you must specify your 16-digit credit card number, the provider and the durability of your card. If you want to withdraw money, you will also need your PIN number.
In addition to credit card organizations (MasterCard, Visa) the plastic cards are also issued directly by card companies (American Express, Diners, AMEX). The customers also have a certain amount of credit on their cards, which is mostly based on the income of the cardholder.
Different types of credit cards at a glance
The most widespread type of card in Germany is the charge card. With this card sales can be made within a previously agreed availability framework. Once a month, the sales are deducted from the current account of the customer. Besides American Express and Diners Club, many Eurocards and most Visa cards are called charge cards.
In contrast to the charge cards, debit cards are debited directly from the current account. Customers will not be granted credit for this type of credit card. A typical debit card is the widely used debit card.
Another form of credit card is the prepaid card. With this credit card, the customer must first load an amount on the card. This is possible via a cash deposit or by transfer from the Gitokonto. Only in the context of your credit you can do business.
The revolving cards represent a relatively new form of credit cards. Here you can use the credit card limit as you wish and then decide yourself in which monthly installments you will repay the credit. However, here is a small monthly rate, usually around 3 percent of the loan amount, calculated.
Credit cards: What costs do you have to expect?
Depending on which credit card you choose, different costs will apply to you. The different forms of cost offered by the institutions are an annual fee, a commitment fee or a certain obligation to pay by credit card. Domestic credit card usage is mostly free and rewarded with rewards. Abroad, most institutions charge fees for payments or use of the ATM.
Increasingly, there are credit institutions that provide their credit cards for free and also do not charge for use abroad. These cards are often issued in conjunction with checking accounts. Customers can also get high interest rates on their savings. Nevertheless, you should pay particular attention to the fine print in the contract. Not infrequently fees are charged for bank statements or other services. You should also make sure that the credit card is free for the first year only. Many institutes attract with such offers.
What about the security of credit cards?
Despite ever-improving security standards, money losses continue to occur among cardholders. In contrast to the overnight money, fixed-term and giro money forms, the risk does not emanate from the economic situation and the banking business. Here you should pay particular attention to card fraudsters. Only recently has a data breach been reported by some banks, where the data of many customers has been sold.
Especially on the Internet you should handle the credit card carefully and pay attention to the security level SSL. Secure websites start in this case with the abbreviation “https”. In addition, a small padlock is visible in the status bar. Furthermore, you should never reply to emails requesting your PIN or one of your TANs. It is best to do the transactions from your private PC.
In addition, the latest virus program should be installed on it. But not only in the virtual world lurks the dangers. Always cover your PIN as much as possible, do not put any bills in public trash cans and never leave your credit card in public. Often, scammers first offload small, insignificant amounts from your accounts. In this case, have your card immediately blocked. For maximum security, check your bills regularly.