These credit card types are available

Apply for a credit cardCredit cards are not all the same. Cards from providers such as Visa or Mastercard come in different types. These usually differ in the type of billing and whether the cardholder is granted a drawing limit. At this point, we will go into detail about the individual credit card types and their advantages and special features, leaving out specials such as motif cards.

The charge card

The charge card is what customers usually mean by a "classic" credit card, where the bank grants the cardholder a spending limit up to a certain credit card limit. Expenditures made by the cardholder are deducted by the bank from the reference account in a total amount on a monthly basis. Alternatively, the cardholder may also transfer the amount. No interest is charged on the deferred payment granted.

Charge cards are still issued most frequently in the USA, according to Visa and Mastercard. The prerequisite for obtaining a "real" credit card is a sufficient credit check and positive credit score. The difference to the revolving card or credit card is that cardholders do not have the option to repay the pre-booked amount in installments.

• Drawdown limit: Depends on the creditworthiness of the applicant.
• Credit score check: Yes
• Individual installment payment: No

The Girocard / Debit Card

A debit card, which most readers should know by the term "Girocard", is not strictly speaking a credit card. This is because the bank does not grant the cardholder a drawing limit. All amounts are debited directly from the account. Nevertheless, the card fulfills all the functions of a classic credit card: With the Girocard it is possible to withdraw money nationally and internationally. Cashless payments and online shopping are also possible.

The advantage of a debit card is that there is no risk of over-indebtedness for the user. They can only use the card for payment until the balance on the associated reference account is used up. For this reason, it is a good alternative for pupils, trainees, students or other people with low credit ratings. When renting a rental car, however, problems can sometimes arise with a Girocard, as many car rental companies do not accept the card due to the lack of coverage guarantee.

• Credit limit: Credit balance basis + granted overdraft facility
• Credit score check: Yes
• Individual installment payment: No

The Credit Card / Revolving Card

Did you know the following?Unlike the Charge-Card or the Girocard, the Credit-Card, also known as the Revolving-Card, has a real credit line. This means that cardholders have the option of repaying their sales in installments. This process usually incurs debit interest of close to 20 percent, depending on the card company. However, owners do not have to resort to this type of settlement. Those who forego partial payment and settle their accounts in one lump sum at the end of a payment period can also use a revolving card interest-free as a charge card.

Revolving credit cards are very widespread in the USA. When choosing a credit card, you should pay attention to which billing mode is preset. This is because many people want to use the card as a classic charge card, but be able to fall back on an installment payment in an emergency.

• Drawdown limit: Depends on the creditworthiness of the applicant.
• Credit score check: Yes
• Individual installment payment: Yes

The prepaid credit card

The prepaid credit card is a credit card on a credit balance basis and a form of debit card. As with cell phone cards of the same name, customers cannot use a prepaid credit card until they have loaded a certain amount onto the card. Depending on the provider and the type of card, top-ups are made using the following options, among others:

• Online banking
• Instant bank transfer
• Cash deposit
• Giropay

With a prepaid credit card, payments are only possible in the amount of the loaded credit; an overdraft is not possible. Customers benefit from good cost control. Due to the lack of a credit line, banks usually issue prepaid credit cards without a prior Credit score check. For this reason, the cards are suitable for people with a weak credit rating, such as pupils, trainees or students. In terms of how they work, there are no differences to charge or revolving cards.

• Credit limit: Credit basis
• Credit score check: No
• Individual installment payment: No