What does a good credit card have to offer? This credit card checklist helps you tick off the must-haves and optional benefits.
A credit card checklist helps you find the best credit card that suits your personal needs and financial possibilities. While some cards offer exclusive advantages and benefits, hidden costs and fees can make using them unattractive. We’ll look at some of the most important criteria and show which advantages are the norm and which ones can sometimes be added.
The credit card checklist: an overview
There are a variety of credit cards on the market, each with its own specific advantages and disadvantages. When choosing a credit card, you should first be clear about what you want to use it for. Should the card be used for everyday payments, offer practical advantages when traveling, or score points through cashback and bonus programs? A clear definition of your own needs helps to narrow down the selection considerably. In addition, interest rates and fee structures are key points when choosing a credit card. It is therefore important to take a close look at these aspects and compare cards with one another.
The consumer advice center has summarized some questions that can serve as comparison points:
- Is a credit card really needed – if so, what exactly for? (travel or rental car bookings, shopping, etc.)
- Is there already a credit card for the existing checking account or does a new account have to be opened?
- Is there an annual fee – if so, how much is it? If the card is free – are there conditions for free use? Are there follow-up costs, for example after one year of use?
- Are there any additional, “hidden” costs beyond the annual fee?
- Are there any additional costs, such as withdrawal fees or foreign transaction fees?
- Is there an interest rate on the loan and if so, how much is it?
- Are there any additional services?
There are many credit cards that charge an annual fee. However, there are also numerous free credit cards. With these, you should make sure that the fees for withdrawing money or paying are not too high – especially abroad. The disadvantage of the free versions: additional services or bonus programs are often not included.
An example of a permanently free credit card is the Amex Blue Card. There is currently even a starting credit of 25 euros for new customers. However, 1,200 euros must be spent within the first six months of activating the card. Customers can also participate in bonus programs such as the Membership Rewards program from American Express. However, there are costs involved: there is a fee of 30 euros per year for participation in the Membership Rewards program. There are also fees for using the card abroad.
Checklist – these are the benefits every credit card should have
Credit cards offer a number of advantages that can make everyday life and travel easier. First of all, they allow for flexible payment methods. Whether in a store or online, a credit card is accepted in many places. In addition, many credit cards offer protection, for example if the card is lost or stolen. This is a particular advantage when traveling. Every credit card today offers these advantages:
- Flexibility when paying worldwide: Credit cards are accepted worldwide, making it easier to pay abroad. However, users should be aware of any fees.
- Safety and protection: Credit card companies invest a lot in protecting their cards from misuse, and users are usually liable for up to 150 euros. There are also cards where customers are not liable at all.
- Easy management and overview of finances via online banking apps: Transactions usually appear in the app in real time, so you always have control over your transactions.
A credit card that costs an annual fee of 99 euros but has a number of additional benefits in addition to the basic services is the Barclays Platinum Double. It offers greater financial flexibility when paying back transactions and an insurance package for travel and shopping. Furthermore, withdrawing money and making payments worldwide is free with this card. Those who invest a little more in the credit card often receive a few additional services and benefits.
Checklist – additional benefits
A positive aspect of many credit cards are additional extras and additional services. These can range from travel insurance and access to airport lounges to exclusive event invitations. For frequent travelers, additional insurance such as international health insurance, baggage insurance or travel cancellation insurance can be worthwhile. Some cards also offer shopping discounts or extended warranties on purchased products. These additional services can often be the deciding factor in choosing a particular credit card. However, these premium credit cards are often expensive – if you accept the sometimes high fees, you should definitely do the math and use the additional services. These are common benefits of premium credit cards:
- New customer bonus when opening the card, such as points or credit
- Comprehensive insurance packages for travel and shopping
- Credit for travel, rental cars, restaurants and shopping
- Cashback options
- Airport lounge access
- Participation in bonus programs
One card that includes the entire range of benefits is the Platinum Card from American Express. However, this costs 720 euros per year, which is not a small amount. As with the free Blue Card, withdrawal and foreign currency fees are also charged. However, the Amex Platinum Card offers a lot, such as a credit for shopping, travel and restaurants worth 440 euros per year (redeemable only at selected partners). There are also two Priority Pass memberships and an insurance package. There is currently a welcome bonus of 55,000 for new customers. Membership Rewards points. To do this, however, cardholders must first spend 13,000 euros in the first six months.
Conclusion
A credit card checklist helps you find the ideal card for your individual needs. You should consider both the desired benefits and the hidden costs and fees. Extras and additional services can be another factor that influences the choice of credit card. With a comprehensive comparison and consideration of all relevant aspects, it becomes easier to make a decision.
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Source: Stern
