Credit cards: the best deals depending on your usage
A comparative study of credit cards used by the Swiss has just been published on moneyland.ch.
More than 590 francs. That's how much occasional credit card users could have saved by switching from the most expensive to the one with the lowest fees. The online comparison service moneyland.ch examined the fees and benefits of 131 credit cards used by the Swiss, highlighting significant disparities.
This study focuses on several user profiles. To begin with, there are "occasional" users. These users use their credit cards to make purchases worth up to 200 francs per month while in Switzerland and spend 1,000 euros per year while on vacation abroad. For them, the most attractive card is the Amex cashback credit card from Swisscard. With this card, the cashback exceeds the 17.40 franc fee. In other words, "occasional" users are winning. Conversely, cards from many private banks often cost them more than 250 francs per year.
Next come the "abroad" users. The study estimates that they spend 5,000 euros per year abroad, paying with their credit card, and they also make the mistake (see below) of withdrawing 1,000 euros in cash with this same card from ATMs in the countries they visit. In their case, the best option is the Migros Cumulus Visa, which costs "only" 363.95 francs, while the most expensive ones easily cost them 700 francs or more.
The study then looks at the profile of the "frequent" user. The platform estimates that they spend 1,000 francs per month in purchases in Switzerland and 5,000 euros per year abroad. And for them too, the Swisscard Amex Cashback Card is the card with the lowest costs (305.75 francs). In comparison, quite a few cards have fees of 750 francs or more.
Before going on vacation, moneyland.ch recommends choosing a credit card that's as cheap as possible, or at least suitable. Some cards offer travel insurance. It's also recommended to bring a debit card for cash withdrawals. And when paying or withdrawing money abroad, always choose the local currency. Finally, it's best to avoid isolated ATMs (e.g., in airports or in front of stores). They often charge very high fees. It's generally more cost-effective to choose an ATM from a major bank.
20 Minutes
%3Aquality(70)%3Afocal(319x243%3A329x253)%2Fcloudfront-eu-central-1.images.arcpublishing.com%2Fliberation%2FZHYA6VIUZZDE5JBAPQBC6P2SIE.jpg&w=3840&q=100)