Credit Cards in France explained
When you move to a new country, you first want to focus on your finances and opening a bank account. However, just opening a bank account will not suffice. You must also choose the best credit for France that offers different benefits and rewards. With all the types of credit cards available in the market, choosing the right one can be a bit challenging, so to help you out, we have laid down this comprehensive guide to teaching you all about credit cards in France and how you can choose the right one.
List of credit card providers in France
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Fortuneo’s Gold Mastercard is an excellent option for expats because it offers free international payments and withdrawals, making it easier to manage finances across borders. |
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Pixpay is a great option for expat families because it helps teens manage their finances across borders, with easy access to money in multiple European countries. The real-time spending tracker and parental controls ensure security and peace of mind. |
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The CardVeritas Mastercard is ideal for expats in France because it offers a quick, five-minute online registration process and provides a French bank account number (RIB) without requiring a local bank account. No hidden fees! |
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Things to know before choosing a credit card in France
There are numerous types of credit cards. Hence, you should explore the market and choose the best suits you. To do this, you should start by considering why you want to use the credit card. The uses can be anything, such as buying things or going on a holiday, paying bills, or spreading the purchasing cost.
However, before choosing a credit card in France, you should consider whether you will be willing to pay off your debt every month or spread the repayment over time.
You will benefit from an interest-free period if you can pay the debt in full and on time every month. In this, the interest rate will not matter. However, you should also consider other important incentives, such as cashback. Even if you think you can pay the debt in full every time, figuring out a backup plan is recommended in case you can’t.
If you use the best credit card in France and fail to repay the monthly debt, you will have to pay higher interest. In this case, you should choose a lower-interest-rate credit card.
Why get a credit card?
A credit card can easily manage your funds, allowing you to pay for costly goods and services by spreading the costs over time.
There are pros and cons of credit cards in France. If used appropriately, by repaying the debts on time, the credit card can be the best way to build a good credit score. A good credit score will allow you to access the best deals on loans and mortgages in the future. However, it is necessary to remember that credit cards are a type of borrowing, and if not used appropriately, they can become expensive.
There is a wide range of best credit card in France, such as cards that allows you to make purchases with no interest for a time and those that allow you to transfer the current card balances and pay the debt at 0% to credit cards that offer rewards, perks, and cashback. It is essential to consider your needs to find the best credit card.
How does credit card work?
It is essential to know how to do credit card work. Different credit cards have different features, and you want to ensure that the card you are getting is perfect for your needs.
Every credit card offers a pre-agreed line of credit. You can spend them using your card, and the balance will then get added to the card account.
You will be charged interest on your credit card spending. The interest is warded off if you repay your debt on time every month or if you have the 0% interest offer.
You will always be needed to repay the minimum monthly amount from your debt. And ideally, to prevent any incurring expensive interest, it is best to clear your balance in full monthly.
Although some types of credit cards in France are best for those with existing debt who want to spread or reduce the cost of their interest payment, other credit cards are better for those who can pay off their balance in full every month and get added perks such as cash backs, rewards or other incentives.
Things to look out for when choosing a credit card
The following are the things to look out for when choosing a credit card:
- Annual Percentage Rate: The overall cost of borrowing on the card in case you don’t clear the whole balance every month. You can compare the APR of different providers to find the cheapest one.
- Minimum Repayment: If you fail to pay off the debt each month, you will be liable to repay a minimum amount of around 3% of the balance.
- Charges: You should contact the credit agreement on other charges to the card. You will generally be charged for exceeding your credit limit, using the card in a foreign country, and for late debt repayment.
- Cash Backs: In this, you will get your money refunded to the card. It depends on your spending. Check whether you qualify for a cashback or not. For instance, cashback may only be applicable if you can pay your balance in full monthly.
Conclusion
A credit card will provide you with many perks and benefits not available with a debit card. Hence, to choose the right card, you should compare the credit cards of different providers and choose the one that fits your needs and spending habits.