Is it easy to get a credit card in Germany?

Navigating Credit Cards in Germany: A Guide for Expats

As an expat in Germany, navigating the intricacies of credit cards can be daunting. However, understanding the unique features and requirements can ease the process.

Types of Credit Cards in Germany

Germany offers three main types of credit cards:

• Charge Cards: Require full payment of the balance each month. They do not offer a revolving credit line.
• Revolving Cards: Allow for carrying over balances from month to month, though interest charges may apply.
• Prepaid Cards: Loadable with funds in advance and used like a debit card. They do not require credit approval.

Eligibility Requirements

Securing a credit card in Germany typically hinges on several factors:

• Residency: Most banks require expats to have a registered address in Germany.
• German Bank Account: A German bank account is usually a prerequisite for issuing a credit card.
• SCHUFA Credit Report: Germany uses the SCHUFA system to assess creditworthiness. A positive SCHUFA score is crucial for obtaining a credit card.

Banks for International Clients

Several banks in Germany cater specifically to international clients, simplifying the application process:

• Deutsche Bank: Offers a range of credit cards tailored to expats, including the “Expat Visa Card” and “Expat Mastercard.”
• Commerzbank: Provides several credit cards for international customers, such as the “Global Visa Card” and “Global Mastercard.”
• DKB Bank: Known for its “DKB Visa Card,” which is widely accepted among expats and offers low foreign transaction fees.

Application Process

The application process for a German credit card involves:

• Submitting an application form
• Providing proof of residency and employment
• Undergoing a SCHUFA credit check
• Receiving a decision, which can take several weeks

Conclusion

Obtaining a credit card in Germany as an expat can be achievable by understanding the different card types, eligibility requirements, and options for international clients. By ensuring residency, maintaining a positive SCHUFA credit report, and choosing a bank that caters to international customers, expats can navigate the German credit card landscape and access convenient financial solutions.