The Best Credit Cards in Germany 2024

Which type of credit card is the best?

Credit cards can be divided into four main categories: Charge card, revolving card and prepaid credit cards.

• A charge card offers you a fixed credit limit each month, which must be paid off in full by the end of the billing cycle. Unlike traditional credit cards, charge cards don't allow you to pay your balance in installments or make partial payments. As a result, they reduce the risk of accumulating debt and don’t incur interest fees. Charge cards are particularly useful for managing expenses, as they allow you to delay payment from the purchase date to the billing date. This means you can make a large purchase even if you don't have the funds immediately available, and then pay it off when your next paycheck arrives.
• Revolving credit cards, often referred to as "real credit cards," offer a flexible line of credit that you can repay in installments. However, if you don't pay off the balance by the end of the billing cycle, interest fees will be added to your outstanding balance. Revolving credit cards provide a level of financial flexibility unmatched by other types of cards.
• A prepaid card has no credit limit and is not linked to a bank account. Instead, it requires you to load money onto the card before making purchases. Once the available balance is spent, you'll need to reload the card with more money to continue using it. Since a prepaid card doesn’t involve credit, no Schufa check is required when applying for one.
• Debit cards are linked directly to your bank account, allowing you to make purchases or withdraw cash by using the funds you already have. Most debit cards can be used internationally and often come with basic features like contactless payments. However, they usually do not offer the same perks and rewards as credit cards.

Which is the best credit card provider?

American Express, Mastercard, Visa and Diners Club are the world's best-known credit card providers.However, there is no one-size-fits-all answer as to which is ultimately the very best. Each of these providers has their own advantages, which vary depending on personal preference.

All four major credit card providers allow for global payments and cash withdrawals. However, there is a key difference: Mastercard and Visa issue their cards through partner banks, while American Express and Diners Club both issue their own cards and manage their own networks. As a result, Amex and Diners Club cards have lower acceptance rates compared to Mastercard and Visa. To help you choose the best credit card for your needs, let’s explore some key differences between them.

Which is the most accepted credit card?

American Express does not reveal the exact number of its acceptance points. However, American Express and Diners Club fall short in comparison to Visa and Mastercard on a global scale. Visa and Mastercard both have a significantly higher level of acceptance. This is also why Visa and/or Mastercards logos are displayed on ATMs worldwide.

Visa has a few thousand more acceptance points and has issued slightly more cards than Mastercard. But for consumers, there is hardly any difference between Mastercard and Visa in everyday use. Visa and Mastercard are accepted in around 35 million restaurants, shops and petrol stations worldwide.

There is also clear differences between the card providers in different countries. For instance, American Express is widely used in the United States, but it is much less common in Germany.

Having two credit cards is better than one

Choosing the best credit card does not necessarily have to be limited to a single card. In fact, combining two different cards can often be a smarter approach to maximize benefits. Pairing a free credit card with a premium card gives you greater flexibility and access to valuable perks, all while keeping costs low. This way, you will always have the right card on hand for any situation - without unnecessary high fees.

A great example of this strategy is combining American Express Platinum Card with Advanzia Mastercard Gold. The Amex Platinum provides premium benefits like restaurant credits, exclusive airport lounge access, and a rewarding bonus program. However, these premium benefits come with a high annual fee. That's where the Advanzia Mastercard Gold makes the perfect companion: it's completely free, ideal for everyday purchases, and especially useful for travel, offering travel insurance and no foreign currency fees.

Key questions to consider when choosing a credit card

Choosing the right credit card can be challenging, as many factors come into play. The ideal credit card should not only align with your financial needs but also complement your lifestyle and future goals.

To find the right credit card for you, it can help to ask yourself these important questions:

1. How often do you plan to use your credit card? If it's primarily for emergencies or occasional use, a free credit card may be the best option, offering the advantage of no annual cost and therefore being suited for infrequent use. However, if you use your card regularly or for larger transactions, a credit card with extra benefits such as cashback, extended insurance, or discounts might be more beneficial, even if the card comes with an annual fee.
2. Do you prefer to pay with credit or not? If you want the flexibility to make purchases on credit and pay them off later, look for cards with favorable terms, such as long interest-free periods. If you would rather load the card with your own money, prepaid credit cards or debit cards are better options.
3. What benefits are important to you? Different credit cards offer different benefits. Some cards focus on cashback, others on bonus points or special travel benefits. If you're interested in specific perks, such as discounts with partner companies or access to exclusive events, be sure to factor these into your decision-making process.
4. Do you travel often and want to use the card while travelling? If you are travelling regularly, you should pay attention to the fees for currency conversions and cash withdrawals. Some credit cards offer free transactions abroad, helping you save money while traveling. Additionally, a comprehensive travel insurance is a highly valuable benefit to consider.
5. How high are the fees for additional services? Pay attention to fees for additional services such as cash withdrawals, replacement cards or transfers. These costs can vary depending on the card type and provider, so it's important to consider them in your decision to avoid unexpected expenses.
6. Do you have a high or low creditworthiness? Some credit cards are only available to those with high a credit score. If your creditworthiness is lower, consider opting for a card with fewer premium benefits.For those with particularly low credit scores, a prepaid card can be a good alternative, as it doesn't require a credit check during the application process.

Advantages of free credit cards

A credit card without an annual fee is often referred to as a "free credit card." These cards are popular due to the many benefits they offer, with the main advantage being the savings from not paying an annual fee, which can sometimes be as high as several hundred euros per year. By avoiding the annual fee, you do not need to feel pressured to use the card just to justify any costs. This is also suitable if you only plan use you card for emergencies or simply as a financial safety net.

For those new to credit cards, a free credit card is a great low-risk option. You can learn to manage credit without the worry of paying an annual fee. However, it’s important to keep in mind that even free credit cards still charge interest on unpaid balances, so paying off your credit in full is key to keeping your credit card free of charge.

Free credit cards also make it easier to own multiple cards, since there is no extra cost involved. Many of these cards still offer perks such as cashback, insurance, discounts, or bonuses, allowing you to earn rewards without the added expense of an annual fee, making it even more rewarding to use them.