How to Get a Credit Card in Germany: A Complete Guide for Foreigners
If you’re new to Germany or have been living here as an expatriate for a while, getting a credit card can make managing your finances easier. Whether it’s for day-to-day expenses, building your credit score, or making larger purchases, having a credit card is often necessary. However, the process and requirements for getting a credit card in Germany can be quite different from other countries. In this detailed guide, we’ll walk you through everything you need to know about how to apply for a credit card in Germany as a foreigner, the types of cards available, and tips for choosing the right one.
Types of Credit Cards in Germany for Foreigners
When exploring credit card options in Germany for expatriates and foreigners, it’s essential to understand that Germany’s credit card system differs from those of other countries. In Germany, the term “credit card” can mean different things, and you’ll find several types of payment cards available:
1. Charge Credit Cards (Chargekarte)
A charge card is one of the most common types of credit cards in Germany. Unlike traditional credit cards in other countries, charge cards require you to pay off your balance in full at the end of each billing cycle. There’s no option to carry a balance or make minimum payments, meaning you won’t accumulate interest, but you also won’t have the flexibility to spread payments over time.
2. Revolving Credit Cards (Revolvierende Kreditkarte)
A revolving credit card is more like the credit cards familiar to people from countries such as the U.S. or the U.K. These cards allow you to carry a balance month to month, making minimum payments while accruing interest on any outstanding amount. Revolving credit cards are relatively less common in Germany but offer more flexibility if you need to spread out payments over a longer period.
3. Debit Cards (EC-Karte/Girokarte)
Though not technically a credit card, the Girokarte (formerly EC-Karte) is widely used in Germany. It directly debits money from your bank account when you make a purchase. While it’s ideal for everyday transactions, it doesn’t provide credit. It’s common for residents in Germany to use a Girokarte for most purchases.
4. Prepaid Credit Cards (Prepaid-Kreditkarte)
A prepaid credit card allows you to load money onto the card in advance and use it until the balance is depleted. This type of card is great for people who don’t have a strong credit history or those who prefer to avoid accumulating debt. It’s also a common option for expatriates and students who may not initially qualify for other types of credit cards in Germany.
Requirements for Getting a Credit Card in Germany
When applying for a credit card in Germany as a foreigner, you’ll need to meet certain criteria and provide the necessary documentation. Here are the standard requirements:
1. German Residency
One of the main requirements is that you must have a registered address in Germany. You will need to provide proof of residency (Anmeldung) as part of the application process.
2. German Bank Account (Girokonto)
You’ll also need a German bank account (Girokonto) to apply for a credit card. Most credit cards are linked to your bank account for direct debits, making it necessary to have one in place before applying.
3. SCHUFA Credit Check
Germany uses the SCHUFA credit bureau to assess your creditworthiness. A SCHUFA score is similar to credit scores in other countries, tracking your payment history, outstanding debts, and overall financial behavior. When you apply for a credit card, the bank will likely request your SCHUFA report to determine if you qualify for credit.
4. Proof of Income
Some credit card providers require proof of a stable income to issue a credit card, particularly for revolving credit cards. Common documents include recent salary slips, an employment contract, or proof of regular earnings.
5. Age Requirement
You must be at least 18 years old to apply for a credit card in Germany. This is a standard legal requirement, regardless of your residency status.
How to Get a Credit Card in Germany: Step-by-Step Process
If you meet the requirements, the next step is to start the application process. Follow these steps to successfully apply for a credit card in Germany as a foreigner:
1. Open a German Bank Account
Before applying for a credit card, ensure you have a Girokonto (German bank account), as it’s essential for making payments and linking your credit card. Some popular banks for foreigners include N26, Commerzbank, Deutsche Bank, and DKB. Many of these banks offer English-language services, making it easier for non-German speakers.
2. Choose the Right Type of Credit Card
The next step is to choose the type of credit card that best suits your needs. Consider your financial habits, such as whether you prefer to pay off your balance in full each month or spread payments over time. Popular credit card providers for foreigners include:
- Visa and Mastercard (widely accepted across Germany)
- American Express (less widely accepted but offers strong rewards)
- N26 (a fully digital bank popular among expatriates)
- DKB (a traditional bank offering free Visa cards with a German bank account)
3. Submit Your Application
Once you’ve chosen your card, you can apply online or in person, depending on the provider. You’ll need to provide the following:
- Proof of address (Anmeldung)
- Passport or identification card
- Proof of income (if required)
- SCHUFA report (often checked automatically)
Most applications can be completed online with digital documentation uploads, but some banks may require you to visit a branch to finalize the application.
4. Undergo the SCHUFA Check
Your creditworthiness will likely be assessed using a SCHUFA check. If you don’t have an established credit history in Germany, you may have difficulty getting approved for a standard credit card. In this case, you might need to start with a prepaid credit card or a secured credit card (if available) to build your credit.
5. Receive and Activate Your Credit Card
Once your application is approved, you’ll receive your credit card by mail. Along with the card, you’ll also receive a PIN code (sent separately). You must activate the card before using it, typically via the bank’s online platform or by making a transaction.
Best Credit Cards for in Germany
Here are some of the best credit cards for foreigners in Germany that offer excellent features for expatriates and newcomers:
1. N26 Mastercard
The N26 Mastercard is one of the most popular options for foreigners due to its simplicity, no annual fees, and full English-language support. N26 is a digital bank, meaning you can manage everything from opening your account to applying for a credit card entirely online.
2. DKB Visa Card
The DKB Visa Card offers a free Visa card with no annual fees, making it ideal for both residents and expatriates in Germany. It’s especially great for travelers, as it offers free worldwide ATM withdrawals.
3. Barclaycard Visa
This Barclaycard Visa is an excellent option for those looking for flexibility. It offers no annual fees, allows for payment flexibility (either paying in full or in installments), and comes with free worldwide payments.
4. American Express
Although American Express isn’t accepted everywhere in Germany, it remains a popular option for those seeking rewards, such as cashback, travel points, or exclusive benefits. It’s ideal for expatriates who prefer an international credit card that also works outside of Germany.
Factors to Consider When Choosing a Credit Card in Germany
When choosing the best credit card in Germany, particularly as a foreigner, there are several key factors to consider:
- Annual Fees: Some credit cards come with annual fees, which may vary depending on the type of card and benefits offered. Ensure that the card’s rewards and features outweigh the cost of any annual fee.
- Interest Rates: Pay close attention to the interest rates charged on revolving credit cards if you plan to carry a balance. Interest rates can vary significantly between providers.
- Foreign Transaction Fees: If you frequently travel or make purchases in foreign currencies, look for a card with low or no foreign transaction fees to avoid additional costs.
- Rewards and Benefits: Some credit cards offer cashback, travel rewards, or points. Consider a card that aligns with your spending habits, whether you prioritize everyday cashback or frequent flyer miles.
- Customer Service in English: For expatriates and foreigners, it’s often essential to choose a provider that offers customer support in English. Banks like N26 and DKB provide English-language services, which can be crucial if you’re still learning German.
Building Credit in Germany as a Foreigner
If you’re new to Germany, you may not have an established credit history. Here are some tips for building credit in Germany:
- Pay Bills on Time: Paying your bills promptly, such as rent, utilities, and mobile phone contracts, is crucial for maintaining a good SCHUFA score.
- Use Your Credit Card Regularly: Use your credit card responsibly by making regular purchases and paying off the balance each month. This will help establish a positive payment history.
- Check Your SCHUFA Score: You’re entitled to one free SCHUFA report annually, which allows you to monitor your credit score and ensure there are no errors on your report.
Getting a credit card in Germany as a foreigner can be a straightforward process once you understand the requirements and options available. By choosing the right type of card, whether it’s a charge card, revolving card, or prepaid card, and building your credit responsibly, you can fully integrate into Germany’s financial system. With popular options like N26 and DKB offering flexible services for expatriates, securing a credit card that meets your needs is easier than ever.
Whether you need a card for daily purchases, international travel, or building credit, following this guide will help you navigate the process of getting a credit card in Germany as a foreigner.
