Credit card comparison and information about prepaid and golden credit cards. Also, is a credit card useful for children.
The transactions made via the credit card are usually summarized monthly in a credit card bill and deducted from the checking account. The repayment can also be made in installments.
The credit cards are only issued to persons over the age of 18 with an income. When applying, a credit bureau information is obtained. As an alternative for all other people is the prepaid credit card, in the first credit is refilled before the card can be purchased.
For students, some institutes usually issue specially designed credit cards. These have a low or even non-contributory annual fee and, due to the irregular income, do not grant a credit line of any arbitrary size.
Prepaid credit cards
With a prepaid credit card, payments are not made on a credit basis but on a credit balance basis. This means that the card is first charged with a payment (for example, by bank transfer) in order to then freely dispose of it.
A prepaid credit card is available for every person living in Germany from the age of 18 or even from the age of 12 years.
Due to the fact that no examination of credit bureau, creditworthiness or income takes place, it is especially suitable for the following persons:
- pupils and students
- unemployed person
- Persons with negative credit bureau
advantages and disadvantages
- No credit check necessary
- No bank and credit bureauauskunft
- No proof of income
- Worldwide use possible
- Payments only until the credit is used up
- Annual fees are slightly higher than normal credit cards
Prepaid credit cards are virtually a credit card without credit bureau, which can be used to pay on the internet, book hotels or rent a car.
Before shopping or vacation travel should always be provided for a sufficient balance on the prepaid credit card.
Golden credit card
The status of a golden credit card requires a high degree of individual creditworthiness. The card is also suitable for withdrawing higher amounts of cash worldwide.
- Security and Services
- Extensive travel insurance packages
- Special services or bonus models
The providers promise, for example, discounts for car rental or travel companies, special security services such as the replacement of travel documents in an emergency, money back models with high annual sales, or recommendations of special events.
Lock credit cards
In the event of loss or theft, you will block your credit card by turning to the general emergency call if you do not know the direct call number of your credit card issuer. This then conveys them to the relevant blocked number. The blockage is the very first and most important measure.
The banks and savings banks that issue a MasterCard credit card all have their own service hotline, which allows you to have the MasterCard blocked directly.
MasterCard Worldwide itself also has a global global emergency service that will help you solve a problem with your MasterCard from anywhere in the world. Here you will be connected to a member of staff who speaks your language as much as possible (in any case English) in the 24-hour daily service.
Lock America Privelege
In the event of loss or theft of your America Privelege Card, you should call America Privelege immediately.
Within Germany, you can also reach this emergency number daily around the clock.
At America Privelege the maximum liability for loss or theft is 25 usd. In the case of immediate notification, any liability shall lapse unless the cardholder has caused the loss of the card due to gross negligence or intent. America Privelege will provide a replacement card for free within 48 hours worldwide.
Practical tip: Make a note of the blocked number of your destination for your documents. Because in the event of loss or theft, etc., you should have your credit card blocked as soon as possible and reimbursed by the police. It is advisable to note the date and time of the call as well as the name of the caller in the blocking service!
Did you know, that …
… credit card holders are liable if an unknown person withdraws money by credit card and secret number. It is then the assumption that the customer has handled the secret number negligently, as long as the owner can not prove otherwise.
Opinion: Credit card for children?
The little ones pay for their purchases. They should too. If the parents are there or if it’s just a roll or an eraser. But financial institutions see far more potential. Because when young customers are introduced to the adult world only early enough, they get used to a parent’s financial tool: credit cards.
In the prepaid variant, some banks offer these cards even to children and young adolescents. And whether the cards actually have a pure prepaid function, is in the best case in the fine print, in the business or payment terms.
Actually, a meaningful, fair system works like this: 300 usds are for example as credit on the map. And if you have bought for 300 usds, the card is simply empty. Covering is not possible. Your balance has been used up. Immediately.
Nevertheless sees attorney Mike Cali of the consumer center in North the danger with prepaid credit cards in the fact that children and young people slip into the minus: if they pay by direct debit and have no more credits.
“That must not be,” criticizes the consumer advocate. Because the direct debit will be submitted a few days later at the card-issuing bank. At that time the credit could have been used up elsewhere.
“If the direct debit is redeemed, the children are granted a loan,” says Mike Cali “Purely legally, however, this is not possible, because the granting of a loan has to be decided by a guardianship court.” He criticizes that for some providers the GTCs stipulate that the “financial usage limit” is exceeded.
Point out maladministration
And what does that mean in everyday life, when the child has bought something with his card? What consequences does this have for the legal transaction? How should parents behave best – towards the bank and the dealer? “Parents should not approve both the underlying transaction and the debit of the account; the purchased item must therefore be returned. “
In addition, parents should inform the bank of the maladministration of their terms and conditions, but do not wait and see how the bank behaves with any “ins-minus slips”.
But actually, the most important question parents ask in advance is: Why should my child actually have such a card? Because education in financial matters of everyday life may run quietly a bit old-fashioned.
“Parents can also show off how to pay and how to handle money, for example by paying more in cash in stores,” says the financial expert. In addition, in his view, even children and young people should pay with real money.
When paying with a card, the children lose the relation to money – and expenses
Special cases job and abroad
Linked with legal and educational issues is the question of the right age, from which an account including a card can be quite useful. However, you will not find an answer to that.
For example, as a parent they can only orient themselves, for example, on whether the adolescent already has an income of his own – and if it is because of the student job as newspaper apprentice. That should be the case at the age of 14.