Different credit cards for different situations

The sentence is legendary. He doesn’t come from a celebrity, let alone a particularly respectable personality. Rather, he has simply become “naturalized” in everyday life.
“I pay by credit card!” You can do that. In stores, in hotels, even on the Internet.

To the credit card issuers

To the credit card issuers

Because you don’t have to carry an entire suitcase full of money for every occasion. If you can use the flagship of cashless payments – the credit card. It has long since proven itself worldwide as a means of payment. The 4 major credit card institutions in the industry also have this; Master card; Visa; American Express and Diner’s Club recognized.
The credit card is more than just the status symbol of the top businessman. It has now reached all social classes.

Application made easy

credit loan

The requirements for applying for a credit card are now also manageable. Personal information, proof of income, a (current) account and a PostIdent procedure for legitimation are no longer an insurmountable hurdle for ordinary consumers.
Regardless of whether the provider issues the credit card personally or through partner institutions (Visa; Master Card).

Different types of credit for different situations

You can use the following overview to assess which credit card best suits your needs. There are different types of credit for different situations. For example …

• The Debit Card / EC card
• The money card
• The classic credit card
• The Charge Card
• The Co Branding credit card
• The prepaid card
• The customer card

The Debit Card / EC card

The Debit Card / EC card

One of the most popular cashless payment methods that most people immediately think of is the debit card. It owes its name to the English term for debt (debit) and is actually not a real credit card, although it is used in Germany and large parts of Europe for cashless payment. Because the debit card does not grant a credit line. All sales are immediately or promptly debited from the account by direct debit. The EC card, introduced as a check card in 1972, is nothing more than a debit card.

The money card

The money card

If the EC card also contains an additional integrated chip, it is converted into a cash card. This allows you to top up your EC card by debiting your current account with an amount of up to $ 200. The top-up limit already shows that the cash card is only suitable for paying small amounts (eg at ATMs) or in shops.

Credit card required – the credit card

Credit card required - the credit card

At first glance, all of these variants may make cashless payments easy. However, they do not correspond to a real credit card in the sense of the inventor.  Finally, the classic credit card (Credit Card) grants you a previously agreed credit line. You will be billed monthly for the sales made (debited from your account). With the Credit Card you also have the option of paying in installments. You will also be charged for the interest incurred.

And very important: the minimum repayment amount is usually determined by the card institute.

The Charge Card

The Charge Card

This distinguishes the classic credit card from the most common type of credit card in Germany, the Charge Card. Here you are granted a certain credit limit. However, sales are collected on a special card account. At the end of the month, these will be debited from your account. Payment in installments is not possible.

The Co Branding Credit Card

The Co Branding Credit Card

If you want to combine the pleasant with the useful, you are well advised to use a co-branding credit card. Are you a fan of a football club? Do you like going on trips or concerts? Want to enjoy financial benefits everywhere? This is only possible if you have a co-branding credit card. These credit cards are issued by credit card institutes in cooperation with an association / service company. They are aimed specifically at all people who, due to their personal inclinations, are already committed to certain companies and would like to invest in their performance.

These services (booking concert tickets; collecting points with Payback; legal protection for rental cars, etc.) can thus be used at more favorable terms. In addition to the publisher’s logo, the card also contains the logo of the cooperating company.

The prepaid card

The prepaid card

You may be familiar with the use of a prepaid card from the mobile communications sector. The credit card in the free economy works exactly according to this principle. You pay a certain amount of credit on your prepaid credit card (eg by cash payment or transfer from a current account) and then have this amount available for your business.

The customer card

credit card

The customer card offers you less scope in global payments. It is usually issued by companies as an internal means of payment and attracts with company-internal discounts and special offers. Accordingly, it is only accepted by the company concerned. The debit is made once a month via the current account. You also have the option of paying in installments (including calculating the interest accrued).