Many credit cards are only offered with a linked current account. This “constraint” on the part of the provider does not have to be a pure disadvantage. The combination can also bring some advantages. See http://www.cincy-racing.com/best-payday-loan-consolidation-a-payday-loan-consolidation-program-in-minutes/ for further editorial
Why are credit cards often only available with a linked current account?
First of all, the difference between credit card issuer and provider is explained because the two terms are often confused. Well-known issuers include Visa, Mastercard, American Express or Diners Club International. If you want a credit card, usually contact a provider. It can either be a branch bank or direct bank or an institution that specializes exclusively in the credit card business.
Banks take up the vast majority of providers and prefer to issue credit cards in combination with checking accounts. The point is neither the checking account, which is often free of charge, nor the credit card, which is also free of charge, rather it can be found in the resulting follow-up business via the overdraft facility.
In addition, a credit check is required to apply for a card and account. If both components are offered together, the check can be made much easier. Such offers offer customers many advantages, but also some negative aspects.
Disadvantages of credit cards with a current account?
Strictly speaking, there is only one disadvantage: you would have to apply for a new current account in order to benefit from a free credit card. That means switching providers or maintaining a two account.
You can largely eliminate the second potential disadvantage by comparing it in advance. The point is that some combined offers only come to light with a debit card. And with these, all transactions debit your checking account within seven days.
Advantages with a combination of checking account and credit card
First of all, as a new customer, you can often look forward to attractive rewards, which, however, should not primarily influence the decision. The transparent overview of your private finances is much more important, since only one bank is responsible for card sales and account management.
You only have to change the provider once and usually have the option of free partner cards. Your credit limit is comparatively high right from the start (provided that your creditworthiness is optimal) and the issuing institutes usually offer you worldwide cash service with optimal and free cards.
In order for you to be able to make the right decision for your needs, we will address the following noteworthy aspects.
What do you have to consider with combined offers?
Choose a provider that offers you a current account and credit card permanently and not only for a limited period free of charge .
In addition, the credit card should be accepted worldwide when shopping and allow you to withdraw cash at as many ATMs as possible without additional fees.
All of the criteria mentioned so far are usually better met by direct banks than by traditional branch banks. But it is important to find a provider among the online operating institutes with the latest transaction process. Direct banks that use TAN generators or send the transaction numbers by SMS are currently considered to be particularly secure.
Another important reason for the decision is the amount of the overdraft interest if the current account is tolerated. Please be particularly critical here, as some providers lure you with money gifts to open an account and then take them away again with excessive interest. If you buy a lot using your credit card, please also make sure you have the longest possible payment term and, if necessary, the installment payment option.