The Advanzia Bank Gebührenfrei Credit Card, also known as the “Gebührenfrei Mastercard Gold,” has been a big deal among expats and international students. For a long time, I have always wondered why as this card comes – for me personally – with some inconveniences.
However, I have started understanding the reasoning behind this card’s popularity in the international community. First of all, Advanzia Bank has a very welcoming application process towards residents with limited credit history in Germany. Hence, people that would usually not have access to a credit card can take advantage. Furthermore, the card is adjusted to the lifestyle of those looking for no annual fees and international transaction flexibility. Whether you are shopping in Germany, traveling abroad, or managing daily expenses, this card promises simplicity and cost-efficiency. However, as I said, it comes with limitations that are crucial to consider. For example, the lack of automatic payment options may require extra diligence to avoid late fees.
In this article, I will delve deeper into who the card is best suited for, its costs, and its perks. Whether you are new to Germany or just looking for a budget-friendly financial tool, this review will help you decide if this card fits your lifestyle. To give you a clear picture, here is a quick overview of its key advantages and drawbacks:
Advanzia Gebührenfrei Credit Card: Product Review in a Nutshell
PROS
CONS
- No annual fee
- No transaction fees in foreign currencies
- Long interest-free period for billl payments (<51 days)
- Expat-friendly credit check and quick application process
- Apple and Google Pay support
- Can be connected to your existing German bank account
- High interest rates for partial payments (over 20%)
- Immediate interest due for cash withdrawals
- Manual bill payment via bank transfer
- No cashback or rewards program
- Customer service and online banking only in German
Who Stands Behind the Gebührenfrei Mastercard Gold?
The “Gebührenfrei Mastercard Gold” is issued by Advanzia Bank, a financial institution based in Luxembourg. Established in 2005, Advanzia Bank provides straightforward financial products focusing on no-frills credit cards. The Gebührenfrei Mastercard Gold is one of its flagship offerings and is widely used across Germany. However, it does not offer full-fledged banking services such as current accounts.
For users, it is reassuring to know that Advanzia Bank operates within the European Union’s regulatory framework, which ensures a high level of consumer protection. The Luxembourg financial regulator (CSSF) also supervises the bank and offers services to multiple countries, including Germany.
In my opinion, Advanzia Bank has established itself as a reliable provider in the credit card market. It is also indirectly supervised by the European central bank through Luxemburg’s banking authority.
However, it is essential to note that the Gebührenfrei Mastercard Gold has faced criticism for certain drawbacks, such as limited customer service accessibility and high interest rates on unpaid balances.
What Does the Advanzia Gebührenfrei Credit Card Cost?
One of the most attractive features of the Advanzia Gebührenfrei Credit Card is its lack of fees for everyday transactions. However, as with any financial product, I always recommend carefully reviewing the cost structure to understand when and how fees may apply:
Annual Fee
The Gebührenfrei Mastercard Gold truly lives up to its name by eliminating yearly fees for cardholders.
Foreign Transaction Fees
The lack of fees for transactions in foreign currencies makes the card highly appealing for expats and frequent travelers, as you can use it abroad without worrying about additional charges for transactions in foreign currencies.
Cash Withdrawals
While cash withdrawals are technically free, interest accrues immediately on the amount withdrawn until it is fully repaid. It can become costly if you cannot pay off the balance quickly for two reasons:
- It is not possible to pre-transfer money and build up a positive balance before withdrawing cash – as with other credit cards. Hence, you will almost always trigger interest fees.
- You can only settle your balance with a manual bank transfer, which could take some days to arrive – especially on weekends and holidays.
Interest
The Annual Percentage Rate (APR) is currently 24.69% (December 2024). The card’s high interest rates come into effect
- For cash withdrawals, immediately
- For purchases, if the entire monthly balance is not paid by the due date
Imagine you are on an extended trip in Asia and withdraw 1,000 Euros in local currency at the beginning of your vacation. You only pay the bill a month later when you return from holiday. You might save on foreign transactions and cash withdrawal fees, but the interest charges are 18.60 Euros.
The Advanzia Gebührenfrei Credit Card is best suited for disciplined users who can pay off their balance before any interest occurs. If you are an expat looking for a cost-effective credit card for international transactions and everyday use, this card can be a great choice – as long as you stay on top of the manual payment process. Otherwise, the high interest rates could outweigh its benefits.
What Perks and Rewards Does the Advanzia Gebührenfrei Credit Card Offer?
Unlike other credit cards, the Advanzia Gebührenfrei Credit Card does not offer a large-scale points-based rewards program or cashback incentives. Whoever is accustomed to reward-heavy credit cards in other countries might be disappointed.
However, it offers some advantages for those who travel – also because of zero-foreign transaction fees – or need a more extended period to settle their balance.
Free Travel Insurance
The card includes travel insurance for trips paid at least 50% with the card. Besides the cardholder, three accompanying travelers are covered for up to 90 days:
- Travel health insurance
- Travel accident insurance
- Travel cancellation insurance
- Luggage insurance
- Liability insurance
Please note that insurance comes with conditions and exclusions, so it is essential to read the fine print to understand the coverage.
Cashback for Travel and Car Rentals
When you book a trip or rental car through Advanzia’s portal, you will get 5% cashback. However, I always suggest checking whether they have the best deal.
Extended Payment Terms
The card offers up to seven weeks of interest-free credit, provided you pay off the balance by the due date. It is one of the most extended durations of all German credit cards. It can give you additional flexibility in managing your cash flow, especially during months with high expenses or if you have to advance costs (e.g., for work equipment or business trips).
How Easy Is It to Manage the Advanzia Gebührenfrei Credit Card?
Ease of management is an essential consideration when choosing a credit card, especially for expats who may already be dealing with a steep learning curve when navigating the German financial system and language.
In my opinion, managing the Advanzia Gebührenfrei Credit Card requires more diligence than other credit cards that offer features like automated payments, fully integrated mobile apps, and easy access to customer service.
Mobile App and Online Banking
Advanzia Bank provides a basic online banking platform that allows you to, e.g.,
- View your transaction history.
- Download monthly statements.
- Initiate payments to clear your balance.
- Manage your customer data.
- Set up Apple Pay or Google Pay.
The card’s mobile app is not considered as advanced as its competitors. However, it enables you to receive instant spending push notifications.
Manual Payments
A key limitation of the Advanzia Gebührenfrei Credit Card is the absence of direct debit functionality. It is a point that a lot of users have complained about. You must manually transfer the amount due each month to avoid incurring interest charges. It adds a layer of responsibility, as forgetting to pay on time can lead to high interest rates and potentially impact your SCHUFA credit score if it gets out of hand.
I know that it is easy to miss a payment deadline in busy periods like traveling or settling into a new job, resulting in additional fees. So prepare to better always be on top of things.
Customer Service
Advanzia Bank offers customer service via phone and email. Support quality can vary and has been one of the most frequent reasons for customer complaints about Advanzia. For expats, the biggest drawback is that customer service is primarily available in German. While some English support exists, it is not guaranteed and will depend on the individual assistant.
How to Apply for the Advanzia Gebührenfrei Credit Card in Germany?
Applying for a credit card in Germany is a straightforward process that can be customarily completed online. With Advanzia Gebührenfrei, it is not any different. They praise themselves for having one of the most straightforward application processes in just 2 minutes. Advanzia does not ask for extensive credit history, so their application process is probably the most expat-friendly in Germany.
Steps to Apply for the Advanzia Bank Gebührenfrei Credit Card
Eligibility Requirements
You must meet the following eligibility criteria to apply for an Advanzia Credit Card:
- Residence in Germany or Luxemburg: You must have a valid address in Germany or Luxemburg.
- EU / EFTA Bank Account: To make payments by bank transfer (SEPA), you must have a valid bank account in the EU or Liechtenstein, Schweiz, Norway, or Iceland.
- Proof of Identity: Be prepared to provide identification documents such as your passport or national ID card.
- Schufa Check: A Schufa creditworthiness check will be performed. However, unlike other credit card companies, Advanzia states that the outcome does not usually influence the decision. Hence, most expats get the card because they typically lack credit history but do not have negative entries. It makes Advanzia Gebührenfrei probably the most newcomer expat-friendly credit card in Germany.
Conclusion: Is the Advanzia Gebührenfrei Credit Card Right for You?
In my opinion, the Advanzia Gebührenfrei Credit Card is a unique option in Germany’s financial landscape, particularly for expats. With no annual fee, no foreign transaction fees, and included travel insurance, it offers a range of benefits that can be particularly valuable for those who travel frequently or make international purchases. The most interesting feature for newcomers in Germany is definitely the easy application process. It sets Advanzia apart as no extensive credit history is required.
The card is best suited for financially disciplined people who manually pay their balance in full each month. You should not require the card to withdraw cash as high interest is due as of day 1. On the other hand, if you struggle to meet payment deadlines or make frequent cash withdrawals, this card might not be the right fit. You should also consider alternatives if you are looking for a credit card with attractive cashback and reward options or more comprehensive travel insurance.
What Are the Alternatives?
If you are not sure whether the Advanzia Gebührenfrei Credit Card is a good fit, here are a few options that might suit your needs:
- If you are new to the country and consider Advanzia because of their expat-friendliness in terms of credit checks, they also offer the expat-friendly Hilton Honors Credit Card. It comes with a yearly fee of 72 Euros but has a lot of valuable perks that can pay off quickly:
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- Option to set up a direct debit so that the remaining balance is directly debited from your bank account after the maximum interest-free period of 51 days.
- Cashback collection: 1 Hilton Honors Rewards Point for every Euro spent with the card, 2 points for transactions at Hilton Group. The points can be redeemed for free stays at Hilton Group hotels, rental car bookings, Amazon shopping, conversion to airline miles, and more.
- Hilton Honors Gold Status allows complimentary breakfast, room upgrades, late check-out, and more at Hilton hotel brands.
- As with “Gebührenfrei”: Zero foreign transaction fees, free cash withdrawals ( unfortunately, immediate interest is also due here), and travel insurance (if at least 50% of the trip is paid by card)
- Other expat-friendly cards are TF Bank Mastercard Gold or even a debit card like N26
- If you want a travel credit card with no foreign transaction fees and free cash withdrawals, check the awa7 Kreditkarte or Hanseatic Bank GenialCard.
- American Express or Eurowings are attractive solutions if you are looking for a credit card with many perks and cashback options.
Ultimately, the best credit card fits your lifestyle and spending habits. Check out my article on Best Credit Cards in Germany for more options.
