{"id":10596,"date":"2022-11-03T06:01:36","date_gmt":"2022-11-03T06:01:36","guid":{"rendered":"https:\/\/chettioan.com\/?p=10596"},"modified":"2023-01-26T06:52:13","modified_gmt":"2023-01-26T06:52:13","slug":"credit-card-without-annual-fee-which-costs-you","status":"publish","type":"post","link":"https:\/\/chettioan.com\/credit-card-without-annual-fee-which-costs-you-10596.html","title":{"rendered":"Credit card without annual fee – which costs you should nevertheless consider"},"content":{"rendered":"

The credit card without annual fee is no longer a rarity. The ability to pay and withdraw money anywhere without paying a basic fee is something more and more people are taking advantage of. There are important points about credit card without annual fee that you should pay attention to. Because in some circumstances you may still incur very high costs.<\/p>\n

Credit card with no annual fee: these costs might apply<\/h2>\n

Even if a credit card is initially offered free of charge, it is important to check whether the credit card issuer generally does not charge a basic fee or whether it is just a temporary promotion.<\/p>\n

It may well be that there is no basic fee only in the first year. Thus, it would not be a real credit card without annual fee if you want to use it for more than one year. Independently of this, however, there are usually other costs to pay.<\/p>\n

Withdrawal fee<\/h3>\n

Many free credit cards charge a fee if you want to withdraw money from an ATM in Germany or abroad. These fees vary by bank. With some credit cards without an annual fee, you may also be able to benefit from free withdrawals.<\/p>\n

Widely used is also a free withdrawal limit per month. If the limit is 200 euros per month, you will only be charged a fee if the amount exceeds this limit.<\/p>\n

Fees due to automatic machines<\/h3>\n

Do not confuse the withdrawal fee with the fees charged to you by the machine operator. As a rule, credit card issuers work with the largest ATM operators and the largest ATM providers. Banks together to avoid fees for withdrawals or at least keep them as low as possible.<\/p>\n

However, there may be ATMs where you still have to pay fees. Therefore, always pay attention to the ATM operator.<\/p>\n

Credit interest<\/h3>\n

With a credit card, you take out a short-term loan (not to be confused with debit and prepaid cards). Depending on the credit card, you pay an effective debit interest rate of 10 to 20 percent per year. In this case, the interest is charged only for the period used.<\/p>\n

With a credit card bill of 200 euros and an annual interest rate of 10 percent, if you pay off the costs after one month, you pay interest of 1.67 euros 1 200 x 0.1)\/12 .<\/p>\n

With many credit cards with no annual fee, you get a grace period in which you can pay off the credit card bill without interest. How long this period is individual. However, you can expect that the longer the period given, the higher the interest rates will be.<\/p>\n

Currency conversion fee<\/h3>\n

The currency conversion fee is a charge that may apply in the European Economic Area if you need to pay a bill in another currency. Although the credit card issuer converts the currency at an exchange rate set by the European Central Bank, it usually adds a fee to it. The European Economic Area includes the following countries:<\/p>\n