If you are a student and living in Germany, you might want to have a credit card. However, when looking for the best credit card in Germany for students, you can easily get confused.
That’s why this comprehensive guide can be your best friend when choosing the best and free credit card in Germany. Because the banking system here is quite different from what many international students might be used to, and finding the right credit card can be a challenge.
In this guide, we’ll explore the best credit card options available in Germany for students, helping you make an informed decision that suits your financial needs.
Best Credit Card in Germany for Students: Some Options
Are you looking for the best credit card in Germany for students? Navigating the world of credit cards can be very hard, especially for students in a new country like Germany.
But here in Germany, there are some popular credit card options including the Gebührenfrei MasterCard GOLD, TFBank MasterCard GOLD, American Express PAYBACK, awa7 Visa Credit Card etc. They offer low fees and student-friendly benefits.
In addition to low fees, these credit cards often come with perks like cashback, flexible payment options, and online account management. Students can also benefit from no foreign transaction fees, making them ideal for travel.
Other options include the Santander Visa Card and the Barclaycard Visa, both offering competitive interest rates and rewards programs.
Many of these cards require proof of student status and a German bank account for eligibility. They are designed to help students build credit responsibly while offering financial flexibility during their studies.
Why Do Students in Germany Need a Credit Card?
While a debit card might suffice for everyday transactions, a credit card offers several advantages, particularly for students. Here are some reasons why you might need a credit card in Germany:
Building Credit History: Establishing a good credit score (Schufa score) is crucial in Germany. It can affect your ability to rent an apartment, secure a phone contract, or even get a job.
Travel Benefits: Many credit cards offer perks like free currency conversion, travel insurance, and cashback on international purchases, which are especially useful for students who travel frequently.
Emergency Funds: A credit card can provide a financial safety net in case of unexpected expenses.
Online Shopping: Certain online transactions, such as booking flights or hotels, may require a credit card rather than a debit card.
Security and Fraud Protection: Credit cards often offer better protection against fraud compared to debit cards. If your card is compromised, credit card companies usually have robust systems to dispute unauthorized charges.
Rewards and Perks: Many credit cards come with rewards programs, including points, cashback, and discounts. These rewards can be especially beneficial for students who are mindful of their spending.
7 Top Credit Cards for Students in Germany: 100% Free!
After evaluating various options, here are the top 6 credit cards for students in Germany. Because these all are totally free. This means they have no yearly charge. So, you can use them without any extra tension.
However, to avoid extra charges or interest just give the bill before the date they’re mentioning in the monthly invoice. So, which are those credit cards in Germany that have no monthly or yearly fees? Here is our list for you:
- TFBank MasterCard GOLD
- awa7 Visa Credit Card
- Gebührenfrei MasterCard GOLD
- Consors Finanz Mastercard
- American Express PAYBACK
- Bank Norwegian Visa Credit Card
- Extra Credit Card (MasterCard)
TFBank MasterCard GOLD
The TF Bank Mastercard Gold is another excellent option, especially for students who are looking for a card with extensive travel insurance and cashback rewards.
Features of TF Bank Mastercard Gold
No Annual Fees: No fees for using the card, making it a cost-effective option.
Up to 51 Days Interest-Free: Offers a long interest-free period on purchases.
Extensive Insurance: Includes foreign travel health insurance, trip cancellation insurance, and more.
Cashback: Offers 5% cashback on travel bookings made through the card.
Drawbacks of TF Bank Mastercard Gold
High Interest Rates: If you don’t pay off the balance in full, the interest rates can be quite high.
No Auto-Pay: Like the Advanzia card, this card also requires manual repayment.
awa7 Visa Credit Card
The awa7 Visa Credit Card is a strong choice for those who are eco-conscious and want a credit card that supports environmental initiatives while offering a variety of useful features. This card is particularly appealing due to its no-fee structure and global usability.
Features of awa7 Visa Credit Card
No Annual Fees: The card has no annual fees, making it an affordable choice for those looking to avoid extra costs.
Worldwide Fee-Free Transactions: You can use the card worldwide without any foreign transaction fees, making it ideal for travelers.
Free Cash Withdrawals Abroad: Enjoy free cash withdrawals when traveling internationally, though fees apply within Germany.
Eco-Friendly Impact: For every €100 spent, a tree is planted in collaboration with WeForest, contributing to global reforestation efforts.
Flexible Repayment Options: The card allows for repayment in small, flexible installments, giving you control over your finances.
Drawbacks of awa7 Visa Credit Card
Domestic Withdrawal Fees: A fee of €3.95 is charged for cash withdrawals within Germany, which could be a downside for those who frequently need cash.
High Interest Rates on Certain Transactions: High interest rates apply to transactions related to cryptocurrencies, gambling, and securities trading, making the card less suitable for these uses.
Consors Finanz Mastercard
The Consors Finanz Mastercard is a flexible credit card option, particularly beneficial for those seeking a card with no annual fees and a wide range of features suitable for everyday use and travel.
Features of Consors Finanz Mastercard
No Annual Fees: This card comes with no annual fees, making it an affordable option for long-term use.
Interest-Free Period: Offers up to 90 days of interest-free credit, providing a flexible payment period for purchases.
No Foreign Transaction Fees: Ideal for travelers, this card does not charge any fees on foreign currency transactions, making it cost-effective for international use.
Worldwide Cash Withdrawals: You can withdraw cash for free worldwide, provided each withdrawal is at least €300.
High Credit Limit: The card offers a credit limit of up to €5,000, providing substantial flexibility for larger purchases.
Drawbacks of Consors Finanz Mastercard
High Fees for Small Cash Withdrawals: Withdrawals under €300 incur a fee of €3.95, which might be inconvenient for users needing smaller amounts.
Limited Rewards Program: The card does not offer significant cashback or rewards, focusing more on practical features rather than bonuses.
American Express PAYBACK
The American Express PAYBACK Card is an excellent choice for those who want to maximize their reward points with every purchase. This card is particularly appealing for frequent shoppers and those looking to collect PAYBACK points, which can be converted into various rewards or even Miles & More miles.
Features of American Express PAYBACK
No Annual Fees: The card has no annual fees, making it a cost-effective option for anyone looking to earn rewards without additional costs.
Points on Every Purchase: Earn 1 PAYBACK point for every €2 spent, which can be converted 1:1 into Miles & More miles, making it a great choice for those looking to collect travel rewards.
Bonus Points: New cardholders can earn up to 3,000 PAYBACK points as a welcome bonus, providing a strong start to your rewards collection.
Amex Offers & Purchase Protection: Benefit from exclusive offers through Amex Offers and enjoy purchase protection that covers refunds if a retailer refuses to take back a purchase.
Free Additional Card: You can receive a free supplementary card, allowing you to share the benefits with a partner or family member.
Drawbacks of American Express PAYBACK
Foreign Transaction Fees: A 2% fee is charged on all non-Euro transactions, making the card less ideal for frequent international use.
Limited Acceptance: As with other American Express cards, acceptance may be more limited compared to Visa or Mastercard, particularly at smaller retailers.
Fees for Cash Withdrawals: Cash withdrawals incur a fee of 4% of the withdrawal amount, with a minimum charge of €5, which might be costly for those who frequently withdraw cash.
Gebührenfrei MasterCard GOLD
The Advanzia Bank Gebührenfrei Mastercard Gold is a popular choice among students due to its high acceptance rate and no annual fees. It offers several benefits that make it an attractive option for students.
Features of Gebührenfrei MasterCard Gold
No Annual Fees: This card is completely free with no annual or monthly charges.
Interest-Free Period: Up to 7 weeks interest-free if you pay the full amount by the due date.
Travel Insurance: Includes travel cancellation insurance, luggage insurance, and travel health insurance.
High Acceptance Rate: Easy approval process with just a valid German address and mobile number.
Drawbacks of Gebührenfrei MasterCard Gold:
Interest on Cash Withdrawals: Interest is charged from the day of withdrawal until repayment.
Manual Repayment: No auto-pay option, so you must remember to pay the bill manually.
Bank Norwegian Visa Credit Card
The Bank Norwegian Visa Credit Card is particularly appealing to students who value flexibility and automatic repayment features.
Features of Bank Norwegian Visa Credit Card
No Annual Fees: Completely free to use with no hidden charges.
Auto-Repayment Feature: Allows for automatic payment of your monthly balance.
No Interest on Cash Withdrawals: No interest is charged on cash withdrawals if the balance is paid in full.
Flexible Repayment Options: You can add funds to the card to increase your credit limit.
Drawbacks of Bank Norwegian Visa Credit Card
Interest Rates: While the interest-free period is generous, the rates are high if you carry a balance.
Lower Acceptance Rate: The approval process can be more stringent compared to other cards.
Extra Credit Card (MasterCard)
The Extra Credit Card MasterCard is a convenient option for those looking for a credit card with no annual fees and flexible repayment options. It’s especially appealing for individuals who want a card that can be used widely and offers a simple, straightforward way to manage payments.
Features of Extra Credit Card (MasterCard)
No Annual Fees: The card comes without any annual fees, making it a budget-friendly option.
High Acceptance: As a MasterCard, the Extra Credit Card is accepted at over 70 million locations worldwide, ensuring it can be used almost anywhere.
Flexible Repayment Options: Cardholders can choose to pay their balance in monthly installments, offering financial flexibility.
High Credit Limit: The card offers a credit limit of up to €4,000, suitable for various spending needs.
No Foreign Transaction Fees in Eurozone: Enjoy fee-free payments within the Eurozone, making it a good choice for domestic and Eurozone travel.
Quick Application Process: The card features a fast application process with approval within 60 seconds and free card delivery.
Drawbacks of Extra Credit Card (MasterCard)
High Interest Rates: The card carries a high effective annual interest rate of 24.6% on carried balances, which can add up if the balance is not paid in full each month.
Foreign Currency and Cash Withdrawal Fees: There is a 2.99% fee on transactions in foreign currencies and a 3% fee (minimum €3) on cash withdrawals, which may make it less ideal for international travel or frequent cash usage.
No Integration with Digital Wallets: The card does not support Google Pay or Apple Pay, limiting its convenience for mobile payments.
Lack of Additional Benefits: Unlike some other cards, the Extra Credit Card does not offer rewards programs, cashback, or travel insurance, focusing instead on basic credit card functions.
How to Choose the Best Credit Card for Students in Germany
Choosing the right credit card depends on your personal financial habits and needs. Here are some factors to consider:
- Fees and Charges
- Interest Rates
- Annual Percentage Rate (APR)
- Repayment Flexibility
- Credit Limit
- Additional Benefits
Fees and Charges
Always check if there are any hidden fees associated with the card, such as foreign transaction fees or charges for cash withdrawals. While the cards listed here are free, some cards may have costs that aren’t immediately apparent.
Firstly, annual fees are another key factor. Some cards may have annual fees that kick in after the first year. Secondly, the foreign transaction fees can be also another pain.
If you plan to travel, check if the card charges a fee for transactions made in a foreign currency. On the other hand, you should be very careful about cash withdrawal fees. Some cards charge a fee when you withdraw cash from an ATM.
Interest Rates
If you plan on carrying a balance, compare the interest rates. High interest rates can quickly turn small balances into significant debt.
Annual Percentage Rate (APR): This is the annual cost of borrowing, including interest and fees. A lower APR is better if you carry a balance.
Introductory Rates: Some cards offer a lower APR for the first few months, but it’s important to know what the rate will be after this period.
Repayment Flexibility
Consider whether you want a card with automatic repayment options or if you’re comfortable managing manual payments. Automatic repayment can save you from late fees and interest charges.
Payment Options
Full Payment: Ideal if you want to avoid interest charges.
Partial Payment: Offers flexibility but can lead to high-interest costs if not managed carefully.
Auto-Pay: Helps ensure you never miss a payment.
Credit Limit
Your credit limit will depend on your credit score (Schufa score). Students might start with a lower limit, which can increase over time with responsible use.
Managing Your Credit Limit
Start Small: A lower limit helps you manage your spending and avoid debt.
Increase Over Time: If you consistently pay your bill on time, your credit limit may be increased.
Avoid Maxing Out: Using a high percentage of your credit limit can negatively impact your credit score.
Additional Benefits
Look at the extra perks, such as travel insurance, cashback offers, or loyalty programs. These can add significant value, especially if you travel frequently or make large purchases.
Some Popular Benefits of the Best Credit Card in Germany for Students
There are benefits of the best credit card in Germany for students. Since these are free, don’t think that they are not good or haven’t any benefits. These cards are as good as another monthly or yearly-charged credit card in Germany.
So let’s have a look what are the popular benefits of the best free credit card in Germany. There are mainly three types of popular benefits of free credit cards for students. These are:
Travel Insurance: Covers emergencies abroad, such as medical expenses or trip cancellations.
Cashback: Earn money back on everyday purchases.
Rewards Points: Accumulate points that can be redeemed for travel, merchandise, or discounts.
Understanding the German Banking System
Before diving into the specifics of credit cards, it’s important to have a basic understanding of the German banking system. In Germany, most people rely on Girokontos (checking accounts) for their everyday banking needs.
When you open a Girokonto, you typically receive a debit card, often referred to as an EC-Karte (Eurocheque card).
However, a debit card is not the same as a credit card. While a debit card allows you to spend money directly from your account, a credit card enables you to borrow money up to a certain limit, which you then pay back later.
This distinction is crucial, especially for students who might need the flexibility that a credit card offers.
Types of Credit Cards in Germany
Before diving into the best credit cards available, it’s essential to understand the different types of credit cards you might encounter:
- Charge Credit Cards
Charge credit cards are the most common type of credit card in Germany. With these cards, you can make purchases and pay the balance in full at the end of each month. There are no interest charges if you pay off the entire amount on time.
Pros: No interest if paid on time, no spending limit.
Cons: Requires full repayment each month, which might be challenging for some students.
- Revolving Credit Cards
Revolving credit cards allow you to carry a balance from month to month, making small payments over time. However, this convenience comes at a cost—interest charges on the unpaid balance.
Pros: Flexible repayment options, useful for managing larger expenses.
Cons: High interest rates, which can lead to significant debt if not managed carefully.
- Prepaid Credit Cards
Prepaid credit cards are not true credit cards, but they function similarly. You load money onto the card before you can use it, so there’s no credit involved. These cards are easy to obtain and are a good option for students who want to avoid the risk of debt.
Pros: No risk of overspending, no interest charges.
Cons: Limited functionality, often no rewards programs.
How to Apply for a Credit Card in Germany as a Student
There are mainly 5-6 steps to apply for a credit card in Germany as a student. However, applying for a credit card in Germany is straightforward, but there are a few steps to ensure you meet the requirements:
Gather Necessary Documents
Before applying, make sure you have all the required documents. These typically include:
Proof of Identity: A valid passport or German ID.
Proof of Residency: A Meldebescheinigung, which is a registration certificate proving your address in Germany.
Bank Statements: Some credit card companies may ask for proof of income or bank statements.
SCHUFA Report: A Schufa report is a credit report that shows your credit history in Germany.
Choose the Right Card
Based on the features and benefits discussed earlier, choose the card that best suits your needs.
Submit Your Application
You can usually apply for a credit card online through the bank’s website. Fill out the application form with your personal details, and submit the required documents.
Verification Process
After submitting your application, the bank will verify your identity and financial status. This may include a Schufa check to assess your creditworthiness.
Approval and Card Issuance
If your application is approved, the credit card will be sent to your registered address. Activation instructions will be included.
Start Using Your Card
Once you receive and activate your card, you can start using it for purchases, cash withdrawals, and other transactions.
Best Credit Card in Germany for Students FAQs
Can international students get a credit card in Germany?
Yes, international students can get a credit card in Germany. However, they might need to provide additional documentation, such as proof of income or a German bank account.
Does using a credit card affect my SCHUFA score?
Yes, your credit card usage can impact your SCHUFA score. Regularly using and promptly repaying your credit card can improve your score, while missed payments or maxing out your credit limit can negatively affect it.
What happens if I miss a payment on my credit card?
Missing a payment can result in late fees, interest charges, and a negative impact on your SCHUFA score. It’s crucial to pay at least the minimum amount due each month.
Is it possible to increase my credit limit as a student?
Yes, your credit limit can increase over time if you consistently use your card responsibly and make on-time payments.
Can I use my German credit card abroad?
Yes, you can use your German credit card abroad. However, be aware of any foreign transaction fees that might apply, although the cards listed in this guide offer favorable conditions for international use.
Are there any hidden fees I should be aware of?
While the credit cards mentioned here have no annual fees, always read the fine print. Watch out for fees related to foreign transactions, cash withdrawals, or late payments.
Conclusion: Which is the Best Credit Card in Germany for Students?
When choosing the best credit card in Germany for students, it’s essential to consider your specific needs and financial situation. However, in our opinion, TFBank MasterCard GOLD, awa7 Visa Credit Card Gebührenfrei MasterCard GOLD, American Express PAYBACK etc are the best credit cards for students in Germany.
In conclusion, we would say, the best credit card for you will depend on your spending habits, travel plans, and how you prefer to manage your finances. Remember to always use credit responsibly to avoid falling into debt and to build a strong credit history in Germany.
If you found this guide helpful, consider sharing it with fellow students living in Germany. Thanks in advance!
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