Is it hard to get a credit card in Germany?

Navigating Credit Cards in Germany as an Expat

For expats relocating to Germany, obtaining a credit card can be a crucial aspect of financial management. Understanding the types of credit cards available, as well as the criteria required for application, is essential.

Types of Credit Cards in Germany

There are three primary types of credit cards in Germany:

• Charge Cards: These require full payment of the balance each month. They offer the benefit of no interest charges but come with higher credit limits.
• Revolving Cards: Allow for carrying a balance that accumulates interest. Monthly minimum payments are required, and interest rates can vary.
• Prepaid Cards: Similar to debit cards, these are loaded with funds in advance and can only be used for purchases within the available balance.

Eligibility Criteria

To obtain a credit card in Germany as an expat, certain criteria must be met:

• German Bank Account: Most banks require a German bank account to issue a credit card.
• Positive SCHUFA Report: The SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is a credit bureau that evaluates individuals’ creditworthiness. A positive SCHUFA report is typically necessary for credit card approval.
• Proof of Income: Evidence of stable income is often required to demonstrate the ability to make timely payments.
• Residence Permit: For non-EU citizens, a valid residence permit may be necessary.

Banks for International Clients

Several banks in Germany cater specifically to international clients, offering dedicated services and English-language support:

• N26: A mobile-first bank that offers a free basic credit card with no annual fee.
• Comdirect: A subsidiary of Commerzbank that provides online banking and credit card services.
• DKB Bank: A cooperative bank with a wide range of financial products, including credit cards tailored for expats.
• ING DiBa: A leading German online bank that offers credit cards with competitive interest rates.

Tips for Expats

• Establish a German Bank Account: Opening a German bank account is a crucial first step towards obtaining a credit card.
• Build a Positive Credit History: Make timely payments on any existing credit or loans to improve your SCHUFA score.
• Consider a Prepaid Card: If you do not meet the eligibility criteria for a credit card, consider using a prepaid card as an alternative payment method.
• Explore Credit Card Alternatives: Debit cards and German Girocards are widely accepted in Germany and offer similar conveniences to credit cards.

By understanding the types of credit cards available, the eligibility criteria, and the banks that cater to international clients, expats can navigate the German credit card landscape and effectively manage their finances in their new home.