Credit card billing tips

Credit card is not equal to credit card. Cards differ not only in appearance and additional services. There are also differences when it comes to credit card billing. You are responsible for when and in what form charges on your own account take place. The following is about the implementation of billing. Various billing aspects in connection with card orders and card ownership are also explained in detail in this guide.

billing forms

billing forms

What does the account statement of the credit card account contain?

Each credit card has its own card account. Here a settlement takes place in regular intervals. Then the cardholder sees the sales, charges and credits.

The structure of the bank statement is simple:

  • At the top of the bill, the balance carry forward – the card balance of the previous month appears. It is zero if an account settlement by direct debit or a transfer took place in the previous accounting period.
  • Below are the individual card transactions listed in the billing period . The usual information includes: date of booking, booking address and place of booking. In addition, for foreign currency sales, the currency amount and exchange rate can be seen. Furthermore, the date of the disposition and the disposition amount are shown in Euro.
  • Fees and debit interest are recorded as additional line items.
  • Successful direct debits or transfers can be found at the end.
  • The individual bookings result in the new card balance .

The credit card statement is usually sent by e-mail and can be viewed online. Postal mailing is now the exception. The usual billing cycle is one month. Depending on the type of credit card billing has different consequences. Anyone who has his credit card bill in view knows the costs and knows how to protect himself from fraud.

Which are the common credit card types?

Which are the common credit card types?

For credit cards, a distinction must be made between charge cards, revolving cards, debit cards and prepaid cards.

  • Charge Cards are among the most classic types of credit cards. The cardholder receives an interest-free loan for these cards throughout the billing cycle . The cardholder may dispose of it up to the granted credit limit. Monthly settlement offsets the accrued balance. This is done by direct debit from the checking account. The loan is automatically repaid every four weeks. Charge Cards are next to Revolving Cards the most used credit cards in Germany.
  • Revolving cards are a special variant of charge cards. The cardholder has the choice: he can repay a loan at the end of the settlement period at once. Likewise, eradication is possible in installments. As a rule, certain minimum rates are prescribed. For Revolving Cards and Charge Cards, credit card billing is more than a sales summary or bank statement. It serves as an actual invoice, which is made by repaying or paying by bank transfer from the checking account to the card account . When paying in installments, interest is charged on the card balance that has not been paid. These are usually quite high. The interest rates correspond at least to the disbursement interest.
  • Debit credit cards are unusual in Germany. In some countries, they are a popular type of credit card without its own card account. Sales are charged promptly directly to a reference account. This is usually the checking account. The time interval between the order and the debit is one to two days. Billing serves transparency.
  • Prepaid cards are credit cards that only work on a credit card basis. The cardholder charges the card account by bank transfer and can then dispose of this card . If the credit is used up, recharging is required. Only then can the card continue to be used. The credit card bill is primarily intended as an overview.

Which credit cards are recommended for specific persons?

Which credit cards are recommended for specific persons?

Classic credit cards are very popular due to the interest-free loan. To get a card, credit is required . A credit card has a specific influence on the credit score, which must be taken into account in each case. The same requirements apply as for a standard loan. Regulated income and orderly financial conditions are minimum conditions. Who has problems with it, should consider a prepaid card. This model is recommended for students, interns or students . Students also have special financial discharge rules, such as those in the tax return.

The Revolving Card offers the advantage of extending the loan repayment. The cardholder thus gains time-limited scope for liquidity. Those who find payment discipline difficult should consider this card critically. Because the liquidity advantage is not cheap.

The credit on the card account

When and how will the credit balance on the credit card account be offset?

Basically, a card account can be credited. With prepaid cards is the standard, but also with charge cards is possible. A credit balance is created by transfers from the checking account over the balance of the card balance . Due to the credit, the credit limit with the card is automatically extended by the credit amount. This is ideal for cardholders who travel for longer periods of time and want to remain liquid at all times. If the card is to go beyond the credit limit, sufficient credit must be available beforehand. Then you can finance a major purchase or a car purchase with the credit card.

What are the interest rates for credit card accounts?

Some card providers pay interest on the credit . Too lush returns can not be earned. Usually, interest rates do not move very far from zero. In the best case, the credit card account comes close to a call money account. Thus, the credit card account offers the advantage of interest-bearing interest on the checking account.