Apply for a credit card and wonder where you stand? The card makes it possible to withdraw money and make payments at millions of points in the world. Where the Dutch bank card is not accepted, the credit card is a handy alternative.
A credit card makes it possible to withdraw money and make payments, up to the spending limit. We have listed a number of characteristics, as well as information about the interest you may pay. On this basis, you can compare the different credit card providers online to make a good choice.
What is a credit card?
Curious about what a credit card actually is? It is a bank card linked to a checking account. When you apply for a credit card, you can choose a spending limit. By default, this is € 1,000 per month, but it is also possible to increase this to, for example, € 5,000 per month. Within that spending limit, it is possible to make expenses or withdraw money. The card works just like a regular debit card. In many of the cases you need a pin code to be able to use a credit card, but this is not always the case (yet) especially abroad.
Characteristics of the credit card
- Withdraw money and make payments
- Credit limit per month
- Flexible repayments on outstanding credit
- Flexible term
- Choose the spending limit yourself
- Repay early at no extra cost
Interest on a credit card
You only pay interest on a credit card when there is an outstanding credit that you cannot pay immediately. Do you have a limit of € 1,000 per month and withdraw € 800 in any month? This means that you will subsequently pay interest on it. However, do you immediately make a payment of € 400? Then there is an outstanding credit of € 400, so that you only have to pay the interest on it.
Do you want to use the credit card without interest? This is possible by immediately paying the bills of the provider as soon as they arrive. It is of course important to keep a close eye on whether you have enough money available to cover the expenses you incur.
Compare credit cards online
Compare multiple credit cards online and wonder what to pay attention to? It is wise to look closely at the spending limit, the fixed costs per month (or per year) and the interest at the moment that an outstanding credit is created. This allows you to make a good comparison between the various credit cards.