Whether it is for managing international transactions, booking travel, gaining shopping rewards, or accessing additional cash reserves, the right credit card can make life much easier. For expats in Germany, having a credit card is primarily a convenience, but sometimes it is also necessary.
Germany has long been a cash-focused society – whether for paying at restaurants or shopping for groceries. However, this is starting to change. Digital payments in Germany are on the rise, and credit cards play an essential role.
I am sure you have probably already experienced how difficult it can be to navigate Germany’s financial system. Did you take the first step by opening a German bank account? Getting a credit card comes with its own prerequisites and challenges. That is why I have created this step-by-step guide to help you apply for a credit card in Germany confidently and efficiently. From choosing the right card to activating it, I walk you through each step so you can get started with ease.
Steps to Apply for a Credit Card in Germany
This article on credit card applications is part of our Ultimate Guide to Credit Cards in Germany, which gives detailed insights about each and every aspect expats need to know.
Research and Decide on the Right Credit Card
Before applying, you need to know what you want to get. So, choosing the right credit card is the crucial first step in the application process. From my personal point of view, it is about balancing costs, benefits, and convenience. By understanding your expat needs and priorities, you can find a card that fits your lifestyle—whether it is for managing everyday expenses, earning rewards, or building credit in Germany. In this chapter, I guide you through the key factors to consider and share resources to make your research easier.
Factors to Consider When Choosing a Credit Card
Selecting the right credit card can make all the difference, but it is tough for non-natives to understand the German market. My advice is to ask yourself the following questions according to six factors for choosing a credit card in Germany:
- What will it cost you? Look into both regular fees, like annual base charges or costs for partner cards, and usage fees, such as those for ATM withdrawals or foreign transactions. Reducing unnecessary charges can save you significant money over time.
- What are the credit terms? If you plan to use your credit card to improve liquidity, consider a charge credit card with extended billing cycles and low interest rates. This is especially useful if you want more flexibility in your financial planning.
- What do you gain? Look for cards that offer perks aligned with your lifestyle, such as cashback rewards, frequent flyer miles, discounts, insurance coverage, or airport lounge access. These benefits can add significant value if used wisely.
- Can you use it flexibly? Some cards, like American Express, offer attractive rewards but are less widely accepted than Visa or Mastercard in Germany. A Visa or Mastercard may serve as a better primary card.
- Is it convenient for you? Consider factors like multilingual customer support, intuitive mobile banking apps, or access to in-person branch assistance if these are important to you.
- Do you fulfill the requirements? If you’re new to Germany and lack a credit history or steady income, opt for banks and credit cards with flexible application requirements.
Resources for Research
Once you know what to look for, it is time to compare your options. To help with your research, I gathered some useful resources that can guide you further:
- Dedicated Page on Best Credit Cards: Explore my comprehensive overview of the best credit cards in Germany. It includes:
- Comparisons of free credit cards, credit cards for students, couples, travel, cashback, and rewards, expats with limited credit history, and virtual options.
- Detailed reviews of individual cards to help you choose the best fit for your needs.
- Bank Websites: Use lists of German banks with credit cards to screen their offers, terms, and conditions
- Friends and expat communities: Gather personal advice and hands-on experiences from your social circle.
Fill Out and Submit the Application Form
It is getting serious – time to fill out the application form. While the process is relatively straightforward, I feel that there are some essential details for expats to know about what there is to provide. You can submit your credit card application directly on the bank’s website. Alternatively, you can visit a bank branch to apply in person if you prefer face-to-face interaction.
I guide you step-by-step so you can complete the process smoothly online or in person.
Overview of the Application Form
When you apply for a credit card in Germany, you must provide some key information. From my experience, this is what you need to expect:
- Personal details: Your full name, date and place of birth, and nationality
- Contact information and residential address: You need a local registered address in Germany (“Anmeldung”) and a local phone number. This is essential as banks require proof that you are a resident to ensure your financial solidity. If you recently moved, you must also provide your previous address in Germany or abroad.
- Employment details and income level: Be prepared to provide your employment status, job title, and income level. It helps the bank assess your ability to repay the credit.
- Bank account information: You need to provide the details of a German bank account. German banks typically require a local account to process payments and any potential withdrawals related to the credit card.
Tips for Completing the Application
- Ensure accuracy: Double-check the information you provide to avoid delays or rejections. Inaccurate details, particularly regarding your income or contact information, can complicate the process.
- Translate technical terms: If the application form is in German and you are not familiar with the language, consider using a translation tool or seeking help to understand the technical terms to avoid misunderstandings.
Credit Check by the Bank
After you submit your application, the bank automatically processes your information and performs a credit check. It helps the bank gauge your ability to repay the credit you’re applying for. In most cases, you receive an immediate result – either an approval or a rejection – based on the assessment of your financial situation.
What Happens During the Credit Check?
- Verification of Submitted Information: The bank first verifies the personal details and documents you’ve provided, such as your correct address and bank account information.
- Bank-Specific Checks: The banks also carry out individual credit checks based on their own criteria. They will especially check whether your employment status and income match their prerequisites.
- Assessment of Your SCHUFA Credit Score: One of the key factors in the approval process is your SCHUFA score—Germany’s national credit rating system. This score reflects your creditworthiness and helps banks determine the level of risk in lending you a credit card. A higher score typically increases your chances of approval. If you are unfamiliar with your SCHUFA score, you can check it at mySCHUFA.de before applying to get an idea of where you stand.
- Improving your creditworthiness: Applying for a credit card is easier if you have a solid income from active employment with an unlimited contract and passed the probation period. If your SCHUFA score is less than ideal, paying bills on time, reducing outstanding debts, or keeping your credit utilization low can improve the score over time. Also, avoid moving addresses frequently or opening new bank accounts.
- Alternatives for those with no credit history: If you are new to Germany and do not have a SCHUFA score or a solid credit history, you can search for special expat credit cards or apply for alternatives like prepaid credit cards or fintech services. These options are easier for newcomers to get approved for.
Identity Verification
Identity verification ensures that your application is legitimate and helps prevent fraud following to German and EU law. This process can be completed remotely or in person, depending on the method you choose.
Documents You Need to Provide
Regardless of the verification method you choose, make sure you have the following documents ready:
- Valid passport or national ID: This is required to confirm your identity.
- Proof of residence in Germany: The Meldebescheinigung (registration certificate) shows your local address. If the address is printed on your ID, you usually do not need this.
- For non-EU citizens: You need to provide your residence permit (Aufenthaltstitel) to prove your legal status in Germany.
- Recent salary statement: Some banks may request to verify your income, especially if you apply for a higher credit limit.
Methods of Identity Verification
There are three options for verifying your identity: VideoIdent, PostIdent, and the new eID. Choosing the identity verification method depends on your preferences, your resources, and nationality.
VideoIdent
With VideoIdent, you complete the identity check via a video call with a bank representative. This option is available to most nationalities and oftentimes available with an English-speaking agent:
- Step 1: After initiating your application, you are directed to a secure video platform or asked to download the mobile app.
- Step 2: During the call, you must photograph your ID and yourself.
- Step 3: The representative verifies your identity and sends a confirmation to the bank.
PostIdent
eID Scan (for German and EU citizens with electronic IDs)
Receive and Activate Your Credit Card
Once your identity is confirmed, you are almost ready to use your credit card. The online banking access credentials, the physical credit card, and the PIN are sent via email or physical mail, respectively. Once you receive your card, you can activate it.
- Log into your online banking portal: Some banks ask you to activate the card online first.
- Change your default PIN: If necessary, or the bank allows, you set a preferred PIN.
- Make a first transaction: Many banks require you to make an initial purchase to completely activate your card.
- Link your card to digital wallets: If you want to use mobile payments, use your bank’s app to set up Google Pay or Apple Pay.
Conclusion
Applying for a credit card in Germany is a five-step process:
- Research and Decide on the Right Credit Card: Understand your needs and priorities to find the best card for you.
- Submit Your Application: Fill out the application form, providing all necessary personal and financial details.
- Credit Check and Approval: The bank will assess your financial standing.
- Verify Your Identity: Choose from available methods to verify your identity, whether online or in person.
- Receive and Activate Your Card: Once approved, you receive your card and online banking access to start using it.
Which card should you get?
Take advantate of our Best Credit Cards in Germany page to explore various options and find the perfect card for you.
