As a student in Germany, you probably think the right credit card comes in handy. It gives you the liberty and freedom to travel abroad and explore Europe without worrying about payment of a security deposit for hotel bookings and rental cars. Some travel credit cards allow you to withdraw free cash abroad and skip foreign transaction fees, making it easy to manage finances abroad. And as money as a student is always tight, a credit card can give you cashback and some extra days of liquidity until the next paycheck.
The best credit cards for students come without monthly fees, so you do not need to worry about extra expenses. Moreover, it does not require strict creditworthiness or income criteria.
In this article, I want to guide you through the key considerations for choosing the best credit card for students in Germany. I will bring in my experience of both, having been a student myself and a long-time user of different credit cards. By highlighting both the benefits and potential drawbacks of each card, I aim to provide you with the tools you need to make an informed decision that works for your unique circumstances as an expat student.
Best Credit Cards for Students in Germany
My Personal Opinion
- Commerzbank Young Visa is dedicated to students and offers easy access to a credit card even with low income.
- PAYBACK American Express is amazing for collecting PAYBACK points and cashback when doing your everyday shopping.
- Advanzia Mastercard Gold is a travel credit card with insurance, no foreign transaction fees, and expat-friendly eligibility criteria.
- Hanseatic Bank GenialCard is the perfect low-fee combination without fees abroad, complimentary cash withdrawals, and easy bill repayment.
Commerzbank Young Visa
With the Commerzbank Young Visa, you do not need to worry about your student status when applying for a credit card. The card is designed exclusively for students. It is tailored specifically to the needs of a student, trainee, or intern taking their first steps into the world of finance. You only require a monthly income of at least 300 Euros (via salary, wages, or BAföG) to get the card.
To get the card, you must open the Commerzbank student account StartKonto. Both the account and Visa card come without an annual fee up to the age of 27. You can also access additional benefits like cashback and discounts through the StartKonto online shopping portal with over 2,000 partner shops.
The Young Visa is an actual credit card. It consolidates your purchases and charges them once a month, giving you the financial freedom to manage your budget. You can also pre-load the card by transferring additional funds, which increases your spending capacity when needed for larger purchases, unexpected expenses, or a car rental. As a Visa, the card is widely accepted, supports contactless payments, and also popular mobile payment systems like Apple Pay, Google Pay, Garmin Pay, and Swatch Pay, As a popular feature for people who want to use the card to pay in installments, Commerzbank offers the “3-Raten-Service”. For purchases over €200, you can split your payment into three equal monthly installments. This service charges a small flat fee based on the purchase amount without applying any interest. Amounts up to 1,000 Euros incur a moderate one-time fee of 4.90 Euros.
A considerable drawback is that the card should not be used for foreign currency transactions as they incur a fee of 1.75%, plus a 0.59% exchange rate markup on the ECB exchange rate. Moreover, cash withdrawals are expensive, costing 1.95% of the withdrawal amount (minimum €5.98 per transaction).
Commerbank
Young Visa
No annual fee
When Is the Commerzbank Young Visa Right for You?
The Commerzbank Young Visa is a great option if you are looking for a straightforward credit card without annual fees to support your financial needs during your studies. It is the only card that is explicitly welcoming and designed for students. The income requirement of 300 Euros is very low. The Young Visa is ideal for managing routine expenses like groceries, subscriptions, and online shopping. Its monthly billing cycle allows you to track and plan your spending effectively. The 3-Raten-Service offers an affordable way to split payments for purchases over €200, making it easier to manage big-ticket items without straining your budget. And if you need to increase your credit limit, e.g., because you want to rent a car, the card allows you to easily top it up with funds without requesting a credit limit increase.
However, in some cases, the card is not ideal for you:
- You are 27 or older.
- You plan to use your credit card for regular transactions outside the Eurozone or for cash withdrawals. The high fees for foreign transactions and ATMs make it very costly.
- You look for additional benefits like travel insurance, rewards points, or premium perks.
- You already have a bank account elsewhere and do not want to open an additional StartKonto.
PAYBACK American Express
American Express credit cards are often associated with prestige and strict eligibility criteria. However, the PAYBACK American Express is different. According to the official eligibility criteria, you must only be above 18 and have a German bank account and residency. The card is permanently free without conditions. It has made the card one of Germany’s most popular student credit cards. The PAYBACK American Express is a full-fledged credit card that you can use to book a hotel or rental car. You can use it with your existing bank; the open balance is automatically deducted each month from your account. Moreover, the rewards credit card gives you several perks and cashback.
You earn PAYBACK points with every purchase, which can be redeemed for shopping vouchers, cash (1 Point = 1 Cent), or Lufthansa Miles & More (1 Point = 1 mile). For every 3 Euros spent, regardless of the merchant (except gas stations), cardholders earn one PAYBACK point.
The PAYBACK American Express comes with 90-day refund insurance; you can use the extended right of return for new products even after the granted retailer’s return period.
Finally, Amex Offers is a cashback program you can activate on the app. You get exclusive discounts or cashback at retailers, online stores, hotels, and more.
When Is the PAYBACK American Express Right for You?
If you are looking for a credit card for daily use to earn cashback, this card is right for you. I advise students to partake in the PAYBACK cashback program anyway. It is Germany’s most extensive loyalty program, and participation is free. You earn points when you shop at PAYBACK partner stores (e.g., EDEKA, dm, Amazon) or online (e.g., Amazon, eBay, Adidas). With the PAYBACK American Express, you are effectively doubling your rewards and earning regular PAYBACK points from shopping and additional points from paying by credit card.
Even though Amex has become widely accepted at major retailers in Germany, smaller shops, restaurants, and cafés often only accept Visa or Mastercard. Hence, you might look for an alternative or backup card if you want to be prepared for every situation.
American Express is generally not the best solution when used outside the Eurozone. A 2% fee on transactions made in non-Euro currencies is applied. For cash withdrawals, a standard fee of 4% al, with a minimum of 5 Euros, is applicable
Advanzia Gebührenfrei
The Advanzia Bank Gebührenfrei credit card is not dedicated to students specifically but is a credit card without annual fees for everyone. However, it has become very popular among students as it has a high acceptance rate. The bank welcomes residents with limited credit history in Germany or people with limited income.
One of the significant assets of this card is that it comes without foreign transaction fees. Hence, it is perfect for traveling outside the Eurozone. Cash withdrawals are also technically free; however, interest accrues immediately. If you do not immediately repay your balance by manual transfer, a very high interest of 24.69% Annual Percentage Rate (APR) is due.
For purchases, this does not apply. With a generous repayment period of up to 51 days, you get 7 weeks of free credit. Unfortunately, the repayment process is a bit complicated. You cannot set a direct debit option to repay your balance automatically. You always need to do it via manual transfer.
A special feature of this free German credit card is that it includes an insurance package 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
Moreover, 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 conditions available.
When Is the Advanzia Gebührenfrei Right for You?
The Advanzia Gebührenfrei credit card is special. It has no annual or foreign transaction fees and includes travel insurance. These benefits can be particularly valuable for those who travel frequently or make international purchases. Thanks to this easy application process, this credit card is not dedicated to students explicitly, does not require extensive credit history, and is available to anyone.
The card is not meant to withdraw cash as high interest is due as of day 1. Generally, you should be financially disciplined to avoid getting trapped in high-interest payments. You must manually pay your balance in full each month; otherwise, high interest is due.
Hanseatic Bank GenialCard
Like the Advanzia card, the Hanseatic Bank GenialCard is not a dedicated student credit card. The eligibility criteria are also more strict. Hence, you should preferably apply if you have a regular income from your student job. However, I took this card off my list because of the great conditions it offers in terms of student life.
The card comes without annual fees, allows free cash withdrawals worldwide, and has no foreign transaction fee. Finally, you can set up to pay back the entire balance automatically by direct debit. Hence, this card keeps its promise of being a free card, reducing fees and interest charges.
It is also possible not to pay back the entire balance, but then – as with every charge credit card – high interest is due. However, it is also possible to manually increase your credit limit by transferring funds from your bank account to your credit card. This is very handy in certain situations, like renting a card, when the security deposit exceeds your usual limit.
Hanseatic Bank also has a cashback portal with vouchers and deals for over 100 online shops. Finally, you receive up to 5% cashback on bookings made through Hanseatic Bank’s “Reisewelt” travel portal.
When Is the Hanseatic Bank GenialCard Right for You?
This card is really suited for everyone who needs a versatile credit card. No matter where you are in the world, you can easily pay and withdraw cash without worrying. The repayment process is very customer-friendly and can be automatized.
The biggest drawback is that the creditworthiness check is stricter than other credit cards. You should have lived in Germany for some months, maintained a German bank account, and had regular income from a student-side job.
Alternatively, you can also get the awa7 credit card. It is also issued by Hanseatic Bank and practically has the same features. It focuses on sustainability, investing into reforestation projects.
Further Options
The four presented credit cards are my favorites for students. However, I have screened the entire market and checked over 50 credit cards from all credit card companies in Germany. If you need more options:
- HVB Bank has a student account that is very similar to that of Commerzbank. If you are under 27, you can open the HVB StartKonto and receive a Mastercard credit with it.
- The TF Bank Mastercard is a very popular credit card option without an annual fee. The conditions are very similar to those of Advanzia’s Gebührenfrei card.
- The Amazon Visa card is an option for everyone who would like to earn cashback on Amazon. Whenever you use the card, you collect 0.5% to 2% cashback that you can spend for online purchases.
You can also check out my guides on the best credit cards in Germany for further inspiration.
Why Students Need Credit Cards in Germany
Germany has a cash culture, although card payments are becoming increasingly widespread. Digital payments dominate online shopping, subscriptions, significant purchases, and in larger cities overall. An ordinary Visa or Mastercard Debit card often serves that purpose. However, credit cards can play a vital role in making managing finances smoother and more manageable.
International travel and transactions
As a student, you may want to travel across Europe and discover the continent’s diversity. Travel credit cards are accepted globally. They support cash withdrawals abroad and charge no transaction fees in different currencies. It ensures you have access to the necessary funds abroad while saving high fees for international use.
Rewards and Cashback
You can get back some of the money you spend using a credit card. It can be in the form of cashback directly credited to your account. But you may also collect airline miles or hotel points to pay for your next vacation. Being a student, you can access some perks even with limited funds.
Extra Liquidity and Emergency Preparedness
Especially as a student, money is tight. Sometimes, you just need to bridge some days until your next paycheck. A credit card can bridge this gap by providing you with an interest-free period. Moreover, unexpected situations, such as a medical emergency, urgent travel, or sudden expenses, can arise. A credit card provides a safety net, giving you the financial flexibility to handle these situations without needing immediate cash.
Building Your Credit History
Germany’s financial system places significant emphasis on your SCHUFA score – a measure of your creditworthiness. Having a credit card and using it responsibly is one way to build a positive SCHUFA score, which will be invaluable for future milestones like renting an apartment, securing a loan, or getting a higher-tier credit card.
However, paying your credit card balance on time is essential. Late payments can negatively affect your SCHUFA score and incur high-interest charges. Consider setting up automatic payments or reminders to clear your dues by the billing date to avoid this.
Key Features to Look for in a Credit Card for Students
Choosing the best credit card involves identifying features that match your financial habits and needs. Here are some practical tips to help you select the right credit card as a student while avoiding common pitfalls:
Low or No Fees
The best student credit cards usually do not charge annual fees. Some of them waive foreign transaction fees or allow free withdrawals abroad.
Perks and Rewards
Some cards come with cashback on everyday purchases, discounts on travel, or even travel insurance. As a student, these small benefits can add significant value to your financial routine. Examples of perks for students are:
- Cashback on purchases like groceries or dining out
- Discounts on travel or online shopping
- Free travel insurance or extended warranties on purchases
- Free ISIC student ID card
Ease of Approval
As a student or expat, you probably have little to no credit history in Germany. Many student-friendly cards are designed with this in mind, offering more straightforward application requirements and low initial credit limits to help you get started.
Over time, as you demonstrate responsible usage, you may qualify for higher limits or additional benefits.
Expat-Friendly Features
Certain credit cards cater specifically to expats, offering simplified documentation or acceptance of foreign identification documents during the application process.
English-Language Support
For expats, having customer service available in English is helpful. Whether understanding terms and conditions or resolving an issue, language barriers should not stand in your way. However, it is important to mention that most credit cards and banks operate in German. Full service in English is rare.
Understanding SCHUFA: How Credit Cards Impact Your Credit Score
SCHUFA is a term you will hear often when dealing with financial products in Germany. It stands for Schutzgemeinschaft für allgemeine Kreditsicherung, which translates to General Credit Protection Association. Your SCHUFA score plays a central role in determining your financial reliability in Germany.
How Credit Cards Affect SCHUFA
Every financial action you take—like applying for a credit card, paying bills, or taking loans—can impact your SCHUFA score. Here is what you need to know:
- Positive Impact: Paying your credit card bills on time and maintaining a low balance can improve your score.
- Negative Impact: Missing payments or exceeding your credit limit can lower your score significantly.
- New Accounts: Applying for too many credit cards or loans in a short period may also lower your score temporarily.
Why SCHUFA Matters for Expats
Your SCHUFA score is crucial for many aspects of life in Germany. Landlords often require a SCHUFA report before renting out apartments. Similarly, banks, telecom companies, and utility providers use it to assess your reliability. Understanding and managing your credit card usage responsibly is essential for building a good financial reputation.
Choosing a Bank with Student-Friendly Creditworthiness Checks
All credit card providers perform a creditworthiness check. This includes checking your SCHUFA and bank-specific rating schemes depending on your income and personal data. While some banks have high requirements, e.g., regarding income, others are more flexible and just start with a lower credit limit based on your financial history. Some banks strive for a very high SCHUFA score, while others only require you not to have any negative entries confirming your missed payments. In my overview, I tried to consolidate the ones that are the most accessible to students.
Potential Limitations of Credit Cards for Expats
While credit cards offer numerous benefits, it is essential to understand their limitations. Here are some key drawbacks to keep in mind:
Language Barriers
Many credit card providers in Germany offer contracts and customer support only in German. For expats who are not yet fluent in the language, this can make it challenging to fully understand terms, conditions, and fees.
Eligibility Challenges
As a new expat in Germany, you might face difficulties in meeting eligibility criteria. Many banks require proof of a steady income or a pre-existing SCHUFA score. For students, this can mean limited options, especially if you are just settling in and do not have a stable financial history.
Hidden Fees
While some credit cards advertise “no fees,” it is crucial to read the fine print. Common pitfalls include:
- High fees for cash withdrawals at ATMs
- Currency conversion charges for purchases outside the eurozone
- Interest rates if you carry a balance beyond the payment due date
- Cumbersome repayment processes that lead to interest charges
Cultural Preferences for Debit or Cash
In Germany, credit cards are less commonly used than debit cards or cash. Many smaller shops or restaurants may not accept credit cards. As a result, relying solely on a credit card might leave you unprepared in certain situations.
Risk of Over-Spending
Use your card as a tool for convenience, not as a substitute for managing your budget or income. A credit card can sometimes lead to overspending, especially if you are not used to managing credit limits. This can result in financial stress, especially for students on tight budgets. Always stay on track of your expenses, and remember that you must return the amount spent at one point.
Most credit cards offer a grace period during which you can pay your balance without incurring interest. Familiarize yourself with this timeline and aim to pay off your dues within this period to avoid unnecessary costs.
Conclusion: Which Credit Card Should You Get as a Student in Germany?
Whether it is enjoying the convenience of cashless payments, easily traveling abroad, or building a positive SCHUFA score, a credit card can help you manage your finances as a student in Germany.
I encourage you to take the time to evaluate your priorities and compare the available options carefully. Think about how each card aligns with your lifestyle, travel plans, and budget as a student. Look closely at key factors such as:
- Annual fees and hidden charges
- Benefits like cashback, travel perks, or insurance
- Eligibility requirements, especially for students or expats
