Credit Cards In Germany For Expats (2024 Guide)

When purchasing in Germany, it is common to hear someone inquire, “Kann ich mit Karte zahlen?” This usually refers to using a debit or Girocard instead of a credit card. In Germany, the word “credit card” (Kreditkarte) is frequently used to refer to a variety of services. These four types of credit cards are available in Germany.

1. 1. 1. Charge Credit Card: In Germany, charge credit cards are the most popular kind of credit card. It collects all your payments in 30 days. You will receive a credit card statement at the end of those 30 days, and your linked bank account will be debited for the full amount. If there are insufficient funds in your bank account, you will experience an overdraft on your balance. Overdraft interest rates are lower than those of revolving credit cards. The process may appear strange to you because it does not give you credit. Charge credit cards are typically issued by conventional banks like Deutsche Bank or Commerzbank.
      2. Revolving Credit Card: Most likely, the revolving credit card better suits your definition of a credit card, as it allows you actual credit, let us say of 2.500 euros. Every purchase you make is reduced from that allowance. At the end of the month, you will receive your credit card bill which will include all amounts of purchases. You will not be charged interest if you choose to wire transfer the entire amount from your bank account at that point. Despite this, most revolving credit card issuers allow you to pay in instalments in return for high interest rates on the outstanding balance.
      3. Debit Card: Even though we are aware that a debit card is not the same as a credit card, we still want to bring it up because, in Germany, debit cards are the most widely used kind of banking card. Mobile banks such as N26 only provide debit cards; they do not offer credit cards. Every purchase made with a debit card will automatically come out of your bank account. This can happen instantly or over a day, depending on your bank. As a result, you do not have a “true” credit.

1. 1. Prepaid Credit Card: A prepaid credit card is only valid if you transfer money from your checking account before use. This is great for controlling your spending or setting yourself a budget; however, you do not have a ‘true’ credit. A prepaid credit card is also a great option in case you do not have a SCHUFA score yet or your score is bad. For more information, read our guide below.

Here are a few good reasons to have a prepaid credit card in Germany: The reasons to have a prepaid credit card are not any different from why it is good to have a regular credit card. 

International Payments

You can make purchases outside of the Eurozone with a credit card. If you have a regular German bank account, the old-fashioned German giro card you receive will either not be accepted or cost you a lot of money.

Money Withdrawal Abroad

Depending on what country you are travelling to, you should carry some cash with you. With a credit card, you can withdraw cash at any ATM worldwide.

Online Payments

You may need to use a debit or credit card when shopping online, depending on the product and online retailer you choose.

Consumer Protection

If a payment was made with a false or fraudulent amount, you have up to eight weeks to request that your credit card company reverse it. There are fewer opportunities for you to remember to make the payment when you pay by direct debit.

Theft Protection

While it feels bad, when you get robbed or lose your credit card, a prepaid credit card has the benefit that the balance and possible fraudulent use are capped to the balance on the card. Depending on the credit limit on your card, potential misuse of a regular credit card could result in more significant financial harm.

Deposits and Large Payments

Suppose you would like to rent a car in Germany or overseas. Only in cases where you can provide a credit card for the deposit is it feasible. You must first wire sufficient funds onto your prepaid credit card to use it for these kinds of transactions. When there was enough money on the card, I was able to use it to rent a car. However, you should check with the rental company beforehand because sometimes the cards are rejected.

How to Increase Your Credit Card Limit?

When you get a credit card, you get a set limit. This limit is usually based on an algorithm that takes all your personal information, income, Schufa score, and other factors into notice. Sometimes this limit can be relatively low.

Frequent use of the card is the best way to raise your limit. After a few months, if your salary exceeds your limit, you can contact customer service and submit your last three payslips as proof that you can manage a higher limit. In our experience, using this method allowed for a limit increase.