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Die Verwendung einer Kreditkarte ist meistens die passende Lösung, Bild: Teerasak Ladnongkhun / shutterstock

Credit cards compared: Which one is the right one for your holiday?

Nowadays, there are many ways to pay an invoice. Especially abroad, many people are thinking about how best to pay. Using a credit card is usually the right solution. But which one is actually better for the holiday and what do travellers have to pay attention to? In this article, holidaymakers will learn why a credit card is advantageous and what different options exist.

Different credit card types

Credit cards can have different conditions, interest rates, and limits. Therefore, it is important to deal with the different types of credit cards. These two different cards are available:

  • Debit card: Debit cards are usually linked directly to the checking account and immediately withdraw the money from the account once a payment is made. They are like electronic checks and quite convenient to use. However, they don’t always offer the same protection and reward benefits as a credit card.
  • Credit cards: With the credit card, the system works something different. Customers receive a credit line that they can exhaust up to a certain point. This means they borrow money from the bank to make the purchases and pay them back later.
  • Travel credit cards: These are specially designed cards that offer travellers special benefits. Vacationers can earn rewards when they make their travel purchases with them. But they can also come with annual fees and interest if customers don’t pay off their balance in full each month.

Consider destinations and needs

Choosing the right travel credit card depends heavily on the individual destinations and needs of the traveler. On the Internet, consumers can compare the offers with tarifcheck.de free of charge to find the best offer for themselves. All relevant information is listed there in order to be able to make an informed decision and simply apply for the credit card. Here are two key factors to consider:

  • Influence of the destination on the choice of credit card: Each destination may have unique financial requirements and considerations. Some regions prefer to pay with cash, such as Greece, while others favour cashless settlements, such as France or Italy.
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Of course, currencies and exchange rates play a major role in this. Last year, a lot of tourists went on holiday to Turkey due to the optimal exchange rate. Many travelers are therefore careful to choose destinations where they get the most value for their money. Choosing a credit card that is widely accepted in the resort and offers favorable exchange rates can greatly improve the financial travel experience.

  • Travel budget and expense planning: Before the holidays begin, it is advisable to draw up a travel budget. The most essential points are the planned expenses for accommodation, food, activities and shopping. The credit card should be adjusted to this set budget to ensure that it is no longer spent. Holidaymakers must find out in advance about the annual fees and interest rates. In this way, travelers cannot exceed their credit limit and avoid high interest rates.

Rewards and Benefits

A big incentive when choosing a travel credit card is the additional rewards that many banks and credit institutions advertise. On the one hand, this creates the incentive to buy more than is actually necessary. While on the other hand, many advantages await customers. Credit card users have the following advantages:

  • Cashback offers: This system has existed for quite some time and attracts a lot of customers. The concept of cashback is as follows: Consumers use the card for every purchase and receive money for it. With some credit cards, this is actually possible. This means that users get a percentage of their purchase back, which can add up to significant savings over time. Whether shopping abroad or visiting local stores, cashback islike a small gift that can help with travel expenses.
  • Mileage or point rewards: Many people from America know the principle of miles. It’s another popular type of reward when vacationers make their travel purchases with their credit card. Those who have achieved a certain number of miles or points can later redeem the reward for free flights, hotel stays or other travel experiences. In this way, people who would normally not be able to ice several times a year can fulfill this dream.
  • Travel insurance and protection services: Travel can bring unpredictable events, from delayed flights to medical emergencies. Many travel credit cards offer protections such as trip cancellation insurance, rental car insurance, and emergency medical coverage. This means that holidaymakers can start their holiday with peace of mind and are much more relaxed, knowing that they are protected in emergencies.
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Costs and fees

In addition to all the rewards and rewards, there are of course fees and additional costs that go around with a credit card. The following deductions must be taken into account:

  • Renewal fees: The annual fees are incurred regularly if customers want to continue using the card. Some credit cards do not charge an annual fee, while others charge for it, which can vary depending on the type of card. Many cards that require an annual fee come with additional benefits that can recoup the cost. The credit institutions want to retain their customers and therefore accommodate them in this way.
  • Exchange rate fees: For people who travel abroad where a foreign currency exists, a conversion fee will be charged when purchasing with the credit card. When people abroad pay by credit card, exchange rate fees may apply. These fees are calculated when the home currency is converted to the currency of the country. It makes sense to look for credit cards that charge low or no exchange rate fees. This is because this fee can sometimes be very high.
  • Cash Withdrawal Fees: Sometimes holidaymakers abroad need cash, whether for small expenses or because cards are not accepted everywhere. Withdrawing cash from ATMs is often not free of charge. They can be made up of a fixed amount as well as a percentage of the amount withdrawn. This fee payment is independent of the ATM operator abroad.