Credit card without a checking account? We show you the possibilities!

Are you looking for a good deal on a credit card but don’t want to open a new account? Then a credit card without a current account is the best choice for you. How exactly such credit cards work and what they can offer, we tell you in this article!

Credit card without a checking account – how does it work?

A credit card without a checking account is offered by many banks and direct banks today. It works by linking it to an external reference account. This means that the card can be operated without new, but not entirely without an account. If you already have a current account with good conditions, such a solution is a good choice. The credit card can simply be linked to your existing account, so you won’t incur any new account management fees. Also, the administrative burden does not increase – after all, you still have to take care of your existing account only.

In addition, prepaid credit cards can usually be used without a new checking account. These cards work deposit-based. Ultimately, only the amount which you have previously transferred to the card is available. A new checking account with additional obligations is not usually created for such cards.

Advantages and disadvantages of a credit card without a checking account

The already touched advantages of a credit card without a new checking account are obvious:

• No additional account maintenance fees
• no additional administrative burden
• Good overview of all expenses in one place
• All the benefits of a regular credit card

In addition to these very tangible benefits, however, there are also some drawbacks. You should not neglect these when deciding for or against a credit card without a checking account. Probably the biggest negative point is the higher fees compared to a regular credit card. The costs for use abroad or for withdrawing cash are usually noticeably higher compared to ordinary credit cards. Also, the debit interest that accrues when you overdraw the credit line of your checking account by using the credit card is sometimes much higher than with a regular credit card. Especially due to these increased debit interest rates, a credit card without a checking account can quickly become unattractive.

The disadvantages at a glance:

• higher application fees
• higher debit interest
• thereby: overall higher costs

What you should look out for

The short list of advantages and disadvantages shows that you need to consider some things when deciding for or against a credit card. Often it is small details that determine whether an offer makes financial sense for you. What exactly you should pay attention to, if you do not want to waste money, we show you very briefly!

Is there a basic fee?

The basic fee accrues in a regular rhythm regardless of the actual use of the card. Most regular credit cards today are issued without a basic fee. Even credit cards without a checking account are usually free of a basic fee. If the bank you choose does charge one, the offer must be far more attractive than average in other areas to make financial sense. A credit card without a basic fee is offered, for example, by Hanseatic-Bank or Barclays.

Can cash be withdrawn free of charge?

Especially when traveling, it’s nice to know that cash is always available with your credit card. Therefore, before signing a contract, find out whether cash can be withdrawn free of charge with the credit card you want – and whether this is also possible abroad. Free cash withdrawals within Germany and in some cases abroad are possible with the card of TF Bank, for example.

Can the card be used outside the euro zone?

Another important question that arises not only for credit cards without a current account is whether the card can be used outside the euro zone. As a rule, this is the case. However, some banks do not allow its use for payments in foreign currencies.

What are the debit interest rates for credit card without checking account?

The debit interest ultimately determines how much money you have to pay for the use of your credit card. With each overdraft of the agreed limit, your bank grants you a short-term loan – and thus earns on your credit card use. The higher the debit interest, the less attractive the offer is for you.