Free credit cards are especially popular if you already know that you only want to use your credit card occasionally, don't need any special additional services, or want to get one for the first time. Customers can now choose from a variety of free credit cards.
Because of this, a credit card is free.
What's the difference between a major credit card and a free one? Credit cards are generally considered “free” if the card-issuing bank renounce an annual basic fee, the so-called annual fee . Providers charge an annual fee, especially if the credit card offer includes additional services such as insurance or bonus programs.
The annual fee is charged regardless of actual payment card usage. As with other offers, may apply usage fees to a free credit card. In addition to the annual fee, the best free deals also waive the foreign transaction fee and cash withdrawal fees. You can read below in the guide what fees may apply to a free credit card.
Who are free credit cards for?
Basically, free credit cards are suitable for everyone. In their primary function as a means of payment, they are in no way inferior to fee-based credit cards. This means that cardholders can use free credit cards for card payments and cash withdrawals with a high level of acceptance around the world.
However, users often have to forego additional services offered by credit cards with an annual fee. However, the services can be contracted independently of the credit card, if necessary. In order for a credit card with an annual fee to pay off, the additional services included must be used in full.
Free MasterCard and Visa credit cards
You can request a MasterCard for free, as well as a Visa credit card. In addition, the selection is also very large with providers, you must find out in advance. Think about how you would like to use the free credit card later.
For example, would you like to withdraw cash worldwide for free, or is it more important to you that you can use your credit card for cashless payments? The question of whether you need a credit card with a line of credit must also be answered by yourself. Especially if you would like your children to use your credit card, for example, it is advisable to use a card that is only included in your credit balance.
Free credit cards also come at a price.
Customers should always be aware of fees that may apply when using credit cards. Because in some cases even free templates have their price. Here's a small checklist of what's important:
- What is the debt interest rate if free credit card account is overdrawn? Debt interest always accrues when the credit line is used and the borrowed money is not repaid with the total invoice, but in installments. In principle, this is only possible if you opt for a credit card with a real line of credit. Debt interest rates in Brazil are between ten percent and 15 percent. Of course, it's best to settle your credit card bill all at once. With so-called prepaid credit cards, which are only listed on credit, you cannot use a line of credit.
- Which are the fees due when paying at home and abroad ? This is called the implantation rate. Payment is free in the euro zone. However, banks generally charge a fee for countries outside the euro area – and this varies significantly. This foreign transaction fee is currently 1.75% on average.
- you can cash out money for free with the free credit card ? This is particularly important if you cannot often pay by credit card when you are abroad and therefore always need to have cash on hand.
The most recommended FREE credit card on our website is Santander Free, see its advantages and request yours!
