Credit card for students: what really matters

Can students even get a credit card?

Yes — but usually not a classic credit card with a credit line, since that requires proof of regular income. Students are best served by balance-based debit and prepaid cards as well as direct-bank cards that don't require a minimum income.

These criteria matter for students

When comparing, students should pay particular attention to these points:

• No annual fee — budgets are usually tight
• No foreign currency fee — ideal for semesters abroad and travel
• Free cash withdrawal at home and abroad
• No minimum spend and no minimum income required
• Mobile payment with Apple Pay and Google Pay

Debit or credit card — which is better?

For most students a free debit card is the simpler choice: it's debited from the account immediately, available without a SCHUFA hurdle and protects against debt.

A true credit card has one advantage, though: it's accepted far more often for hotel deposits and car rentals. Frequent travellers do best with a combination of a debit card for everyday use and a free credit card for trips.

Beware of instalment payment

Many free credit cards have instalment payment (revolving) enabled by default. Only a small part of the bill is paid, with the rest charged high interest of often over 17 %. Switch to full payment right after receiving the card to avoid this cost trap.