"Southeast Asia here I come! I started working straight after graduating, but now I'm rewarding myself with a sabbatical lasting several weeks and exploring the Asian continent. If I like it somewhere, I'll stay there for a few days and if not, I'll move on. I don't plan it down to the day, but spontaneously according to my mood. Maximum flexibility. And I also need that when it comes to paying locally."
Do you want to travel a lot like Robin and need a credit card for worldwide payments and withdrawing money locally or for any other reason? Then there are a few things you should consider when choosing a credit card.
There are a total of three different card types and billing models, from which you can decide which one suits you best:
Charge and revolving credit cards
A credit limit is granted for these types of credit card. The transactions made within a month are added together for billing purposes and debited from your account by direct debit after 30 days. With a revolving credit card, you can also agree to repay in installments instead, although this is subject to high interest rates.
Debit credit card
With this credit card, your account is debited directly or promptly with the invoice amount, similar to a Girocard.
Prepaid credit card
This type of card is a credit card with a credit balance. Before you can use it, you must first top up your bank account.
Another important criterion for choosing the right credit card is the costs incurred. These can be incurred when using the credit card at home and abroad, through the annual fees charged by the bank or other additional services such as fees for a second or partner card. In addition, there are high overdraft fees, for example, as soon as the credit card bill is due and your account does not have sufficient funds.
It is good to know that the credit card issuer usually also checks your SCHUFA score for a credit card contract. If you receive the credit card, this will also be noted in your SCHUFA data. So beware of bait offers and signing bonuses from some providers: Too many credit cards can possibly worsen your SCHUFA score.
"... I want to do my bit to reduce environmental pollution. That's why I want to swap my old small car for an electric car. A leasing model seems to be the most suitable option for me."
As you pay recurring monthly installments when leasing, this model is particularly worthwhile if you like to plan your finances firmly. When choosing the right leasing provider, however, you should definitely get an overview of the rates at the various dealerships beforehand. That way, you can find exactly the right car for you at the right conditions that you can afford. In order to be able to lease a car at all, you have to prove that you are sufficiently solvent and can afford the monthly leasing payments for the entire term without any problems.
For this reason, you will need a copy of your ID and proof of salary for the last three months. The bank of the relevant car dealer will then request a SCHUFA query for leasing contracts in order to be able to assess whether you can pay your monthly installments based on your creditworthiness. Similar to taking out a loan, the provider plays it safe and protects itself from the risk of payment defaults.
But be careful: the monthly leasing installments come on top of existing payment demands for gym memberships and cell phone contracts, regular living expenses and unforeseen costs such as a spontaneous visit to the vet. More and more young people are underestimating their monthly costs and thus run the risk of falling into a debt trap.
Important documents for your loan
In addition to a self-disclosure form and a copy of your ID or travel documents, you will also need to provide proof of salary for the last three months and proof of sufficient creditworthiness. The credit rating provides information about your creditworthiness and gives the leasing provider a probability of whether you can and will pay your monthly installments. Similar to taking out a loan, the provider plays it safe and protects itself against the risk of payment defaults.
Keeping track of costs
The monthly leasing installments are added to existing payment demands for fitness memberships and cell phone contracts, regular living expenses or unforeseen costs such as a spontaneous visit to the vet. More and more young people are underestimating their monthly costs and thus run the risk of falling into a debt trap.
Avoid debt traps
The most important thing you can do to avoid debt is to be aware of your circumstances. The classic budget book or apps on your cell phone offer you the opportunity to keep an overview. You can also regularly obtain free self-disclosures from SCHUFA, which will give you an insight into your ability to pay.
When buying a new product, you should always ask yourself whether you really need the product, whether you should really take out a loan for it or whether you don't want to put your money aside first.
It is important that you get an overview of current loans and whether your creditworthiness data is up to date and correct. You can find out what information about you is stored at SCHUFA with a data copy in accordance with the GDPR - better known as a SCHUFA self-disclosure.