Getting a real credit card in Germany is surprisingly tricky. Germans prefer debit cards and cash, so the credit card market is much smaller than in the US or UK. Most German bank accounts come with a Girokarte (debit card), not a credit card. But if you travel, shop online internationally, or want to build a credit history, you'll want one. Here are the best options.
Why You Might Need a Credit Card
Most things in Germany work fine with a debit card or even cash. But credit cards are essential for:
- Renting cars - almost all rental companies require a credit card for the deposit
- Hotel bookings - many hotels outside Germany want a credit card
- International travel - outside the EU, credit cards get better exchange rates and fraud protection
- Online shopping - some international sites don't accept German Girokarte
Our Top Pick: Advanzia Mastercard Gold
The Advanzia Mastercard Gold is the most popular free credit card in Germany for good reason:
- No annual fee - free forever, not just the first year
- No foreign transaction fees - use it anywhere in the world at the real exchange rate
- Free travel insurance - covers medical emergencies, trip cancellation, and rental car damage when you pay with the card
- Worldwide acceptance - Mastercard is accepted virtually everywhere
The catch: the interest rate on unpaid balances is very high (around 25%). You must pay the full balance every month. Set up a Lastschrift (direct debit) for the full amount and you'll never pay a cent in interest or fees.
Warning: Advanzia's default payment is the minimum amount, not the full balance. Change this to full payment (Vollzahlung) immediately after receiving your card. Otherwise, you'll pay brutal interest charges.
Runner-Up: Barclays Visa
Barclays also offers a free credit card with no foreign transaction fees. It's a Visa instead of Mastercard, which can be useful as a backup since some places accept one but not the other. The app is clean, and they have decent customer support in German and English.
For Premium Travelers: Amex Payback
If you spend a lot, the American Express Payback card lets you earn points at German retailers (dm, REWE, Aral). No annual fee for the basic version. The downside: Amex acceptance in Germany is limited. Many restaurants and smaller shops don't take it. Treat it as a secondary card, not your only one.
What About Your Bank's Credit Card?
N26, DKB, and ING all offer their own cards, but they're technically debit cards (Visa Debit or Mastercard Debit). They work like credit cards in most situations but some car rental companies and hotels require an actual credit card. If you encounter problems, that's when the Advanzia or Barclays comes in handy.
Pro Tip: Carry both a debit card (from your German bank) and a credit card (Advanzia or Barclays) when traveling. If one gets blocked or doesn't work, you always have a backup.
How to Apply
Most credit card applications in Germany require:
- German address (Anmeldung completed)
- German bank account for Lastschrift
- Proof of income - sometimes a payslip, sometimes just declaring your salary online
- A few months of residency - some issuers want you to have been in Germany for 3-6 months
Approval usually takes 1-2 weeks. The physical card arrives by mail. If you're denied, it's likely because you're too new to Germany. Wait a few months and try again. There's no formal credit score system like in the US, but the SCHUFA (Germany's credit agency) does track your credit behavior.
The Bottom Line
Get the Advanzia Mastercard Gold as your primary credit card. It's free, has no foreign fees, includes travel insurance, and works everywhere. Set up full balance payment via direct debit and it costs you absolutely nothing. Add the Barclays Visa as a backup if you travel frequently. For everyday spending in Germany, your regular bank debit card is all you need.