If you need a credit card, do not automatically choose the card that the bank presents you. Comparing credit cards is also worthwhile.
Your bank’s standard credit card is rarely the best credit card.
A disadvantage of your bank’s credit card is that you can never link it to a checking account of another bank, if you wish. Such a card usually also has no extras, such as savings, gifts and insurance.
You are also not free to choose for Visa, Mastercard or American Express. The bank card is usually a Mastercard.
Credit card prices vary widely.
For each credit card you have to pay a kind of subscription price every year – free credit cards do not exist in the Netherlands.
This so-called annual contribution varies enormously per card. For example, you pay 16 USD for the ANWB credit card, and 700 USD for the American Express Platinum Card.
Very expensive credit cards offer many privileges that will give you a wonderful feeling. But you also manage to find a decent basic credit card for two or three decades per year.
Credit cards have presents for new owners.
There are always credit cards with a welcome offer. This can be a nice gift, a discount on the price, a number of loyalty points or a spending credit.
These offers are often interesting and can reduce costs considerably. The Visa World Card, for example, is usually free in the first year. If you also receive a credit on the card, then you have this card almost for nothing for the first two years.
You are free to cancel the credit card again after a year, while retaining a gift or discount. You do not have to pay a fine.
You are insured with some credit cards.
It is often about purchase insurance. This means that many (but certainly not all) items you purchase with your credit card are insured for a while against loss or damage, from three months to a whole year.
With other cards you are insured again for accidents or inconveniences on holiday. Provided you have paid for the trip or stay by credit card.
Often it concerns a reimbursement of unexpected costs due to delays in your flight or luggage. But there are also credit cards with comprehensive comprehensive travel insurance or legal assistance.
Consider whether you find this type of insurance useful. If you do not need them, choose a cheaper credit card without fuss, such as the Mastercard Classic. If you want to know more about credit card insurance, read this article.
Costs for paying abroad can vary considerably.
An important reason for purchasing a credit card is that you need it abroad.
If you go outside the euro zone, you pay in a different currency, for example dollars, pounds or lira’s. The bank or credit card charges you with the so-called exchange rate surcharge for the conversion.
This surcharge is a fixed percentage, but can vary from 1.5% to 2.5% per credit card. On a three-week holiday or a trip around the world, where you will make frequent use of your credit card, this storage makes a substantial difference.
Gold cards usually have the lowest storage, but are more expensive in annual contribution. You already have a gold card for around four or five tens a year (World Card). The price mark is always stated in the reviews on Dazes family.
A few more points for attention
Consider further whether you will opt for Visa, Mastercard or American Express and which limit you need.
There is little difference between Visa and Mastercard. Both are fine, but with Visa your payment chances may be slightly higher.
You cannot go anywhere with American Express. For example, not in smaller stores and web shops. But no doubt in hotels and airports. American Express has other benefits such as extensive savings programs, no predetermined limit and worldwide assistance.
If you are not a big spender, then a credit card with a spending limit of 5,000 USD per month may not make much sense. Such a card is of course also more expensive.
Nowadays you can adjust the limit yourself, but this does not change the costs. If you are going to use the credit card very little, choose a cheap card with a lower limit of 1,250 or 1,500 USD.