A credit card is a very useful means of payment, so you pay richly for it. How much you pay depends on the company from which you use the credit card. A credit card is accepted all over the world as a payment method. The most important characteristic of the pass is that you have to pay later. If you use a traditional debit card, the money will be written directly from your account. That is not the case with a credit card.
The cost of a credit card
A credit card can be compared to taking out a small-scale personal loan. Borrowing money costs money, which means that consumers are charged for using the credit card. It starts with subscription costs that are between 10 euros and 85 euros per year, depending on the company. In general, the costs can be linked to the spending limit that you receive with the credit card. If you use the credit card to a very limited extent, you do not need an expensive card either.
The company that provides the credit card also influences the costs of the credit card. There are three types of credit card providers. Namely:
- Credit card companies
- Stores and / or retailers associations
If you receive a credit card through a bank, it is often part of a payment package. Sometimes the pass is free and sometimes not. It is best to request this information from your bank. If you want a separate credit card, but do not want to have very low subscription costs, the best way to aim is for shops and associations. As a regular customer you often pay little. A good example is the Gamma Visa Card which costs 15 euros per year and the ANWB Mastercard which costs 12 euros per year.
When you use a credit card and borrow money from it, you naturally pay interest on it. The interest rate is quite high and it certainly pays to compare the various credit card loans. However, the loan only comes into view if you do not transfer the money to the issuer of the credit card within a month. You can also opt for a monthly amount that you pay to the company each month. Only then must enough money remain in the account each month to cover these costs. If that does not happen then there are quite a few costs involved. From a legal point of view, interest rates rise to a maximum of 16 percent on an annual basis. There are also credit cards that use a lower interest rate. Consider the Goldcard that ‘only’ asks 10.4 percent interest.
When you make a payment outside of Europe with your credit card. Then it is possible that you also have to pay costs for the price. This also varies by credit card. It is often 1.3 to 2.3 percent. When you withdraw money from an ATM using your credit card, it is actually always expensive. Try to use your credit card as little as possible. Every time you withdraw money with your credit card, at least 4.50 euros extra will be charged. There are providers who do not enter a fixed amount, but a percentage of the amount that you withdraw. And that can be quite high in costs.