What distinguishes a free credit card?
Yes, there really is: the free credit card. Not on every street corner, sorry, at every bank. However, some providers have not yet followed the general trend of charging a new fee for every service. To find a fee-free Visa or Mastercard, you need a credit card comparison. This is not just about the annual fee, but much more facets.
Credit cards with no annual fee
The basic requirement for a credit card to be considered free of charge is to waive an annual fee. Depending on the bank and card, it is between 20 and sometimes over 100 USD. This amount is often waived for new customers in the first year. Then there is the bad awakening when suddenly fees are charged. So: Always make sure that no annual fee is permanently charged.
The option of being able to withdraw money from ATMs free of charge anywhere with the credit card is just as important. Because: Many providers charge a flat rate for each transaction or a certain percentage of the amount that has been withdrawn. If the cash is made in a foreign currency, a foreign assignment fee may also be added. This results in unexpectedly high costs if you use the credit card to supply cash.
The foreign assignment fee
The foreign transaction fee for transactions that are not made in USD but in another currency or outside the USD area must also be paid for purchases of goods. This fee ranges from 1.0 to over 2.0 percent. Means: If you go shopping in the USA with a credit card, the account for the 100 USD dress is not 100, but sometimes 101.50 USD or more.
The next item on the free credit card list: interest. They are usually required when paying in installments. It is therefore important to always repay the invoice amount in one sum or to have it debited automatically by direct debit. That saves a lot of money.
When comparing credit cards, one should therefore pay attention to the annual fee, the possible fees for cash dispensing at ATMs, the foreign assignment fee and the type of settlement or the amount of interest. Then you are on the best way to secure a free credit card.