How does the best credit card work?

by Admin | April 15, 2021
How does the best credit card work?

The financefuel.net credit card comparison not only provides an overview of the current offers, but also a look at the details. In our overview of search results for each credit card, you will find the card's special features to the right. This can be, for example, the possibility to collect payback points with the card, fee-free cash withdrawal worldwide or a fee-free card payment.

  • Product details
  • New customer offer
  • Overview of fees
  • Payment and cash
  • Additional services


In addition, the credit card comparison already shows you in the main overview whether an annual fee is due - in the first or also in the second year. You will also receive transparent information on the APR, which could be decisive for you when making your decision.

How does the best credit card work?

Credit card functionOnly very few credit cards actually grant the holder credit. But why are the cards called that? Here are some smart answers to the question, "What is a credit card?"

First of all, a credit card is a payment card that can be used to make cashless payments. Be it when shopping in a store or shopping online. In addition, the credit card can also be used to withdraw cash at most ATMs. When paying with a credit card, either a signature is required or the entry of a secret code.

How much money can be instructed with the credit card depends on the credit line agreed with the bank. Not only one's own wishes play a role, but above all one's creditworthiness. With a classic charge credit card, the sales are collected for a month and then debited from the current account. The credit card statement comes either by mail to the house or it can be viewed immediately in the account overview in online banking.


Credit cards in comparison - debit card or credit card?

Which credit card makes the most sense for you personally? There are both classic credit cards and so-called debit cards. Strictly speaking, these are not real credit cards, although they are usually marketed as such. For this reason, we would like to take you in connection with a credit card comparison then also and explain briefly.

The biggest differences between debit cards and credit cards are:

  • With debit cards, you are not granted any real credit
  • The transactions made with debit cards are immediately debited from your current account
  • With credit cards you are granted a real credit line
  • The credit card statement is collected once a month

Both variants bring both advantages and disadvantages. While you can make transactions with a credit card even if your checking account is in the red at the time, for example, this is not possible with a debit card. So in the event of short-term liquidity bottlenecks, the credit card is more practical. On the other hand, the risk of falling into the debt trap is lower with a debit card because of the direct debits. With the classic credit card, the risk of over-indebtedness is greater. So you should also take these points into account when making a detailed credit card comparison.

Number of transactions in the USA per year in millions

Credit card costs - Save on annual fees

What can credit cards cost? Many banks charge an annual fee for their credit cards. These are often calculated down to the month and debited monthly pro rata. Direct banks in particular offer credit cards without an annual fee. The best credit card does not necessarily have to cost extra money. In fact, many free credit cards convince in the credit card comparison.

How a credit card worksWith a fee-free card, a lot of money can be saved extrapolated over several years. The fact that the credit card is free does not have to have a negative impact on the support or other things. Find out which are the best offers in the big FinanceFuel credit card comparison. And if you want, you can then apply for your desired credit card right away with a click of the mouse.

When comparing credit cards, you should pay attention to the following fees, among others:

  • Annual fee: The annual fee is incurred once a year and is not paid from the credit card account, but from a clearing account or reference account. As a rule, this account is a normal current account. Some financial institutions offer free credit cards for which no annual fee is payable on a permanent basis. Other banks offer credit cards that are free of charge for at least the first year. Often, the exemption from an annual fee is linked to additional conditions such as a certain annual turnover.
  • Fees when withdrawing money: Depending on the credit institution from which a credit card holder withdraws cash at an ATM, he or she may have to pay fees in some cases. How much the cash withdrawal costs usually depends on the amount withdrawn. Most banks charge between one and 4 percent of the amount as a fee, but at least 4 to 6 dollars. However, many institutions offer credit cards that can be used to withdraw cash from ATMs worldwide free of charge. Nevertheless, further costs may be incurred when withdrawing cash, as some ATM operators charge an additional fee abroad, known as a "surcharge". You can usually see how high this fee is on the ATM display.
  • Fees for payments abroad: Some banks charge cardholders fees when they use their credit card to make payments outside the euro zone. This fee is known as a foreign transaction fee. Outside the euro zone, various ATMs offer direct conversion into euros. Credit card holders should refrain from doing so, as the exchange rate is usually worse than the rate offered by the bank or credit card provider.
  • Credit interest: In the case of a credit card with the option of individual partial payments, monthly interest accrues on the amount that the cardholder has not yet paid when the credit card bill is due. For example, if you buy new clothes at the beginning of the month, book your next vacation a week later and then fail to pay your credit card bill - either by direct debit or bank transfer - you will have to pay credit interest on the outstanding balance. Depending on the bank and credit card, between 6 and 22 percent APR is charged.
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