Consider applying for a credit card when planning a trip or building a spare wallet. The right credit card gives you financial flexibility and additional benefits.
Today, we will compare two credit card options – a virtual credit card from Banknote and a regular plastic credit card from Citadele. We’ll examine their differences and advantages and how to apply and use them if needed.
What are credit cards for?
At first glance, why would I need a credit card if I have a regular debit card that my salary comes to? For example, you can easily set up a Revolut card and live peacefully without needing a credit card. However, the purposes of a credit card are pretty different.
When applying for a credit card, each person is guided by his or her objectives – travel, unexpected expenses, or spare cash. The advantage is that you don’t have to transfer the money to your account and can spend it directly from your new card. Sometimes, you don’t even have to wait for a plastic card to be made, but can pay for everything using NFC.
Citadele plastic card
If you are planning to go on holiday, the credit cards the bank offers first provide you with insurance abroad. They cover flight delays, car rental, and sickness costs in another country. You can use it electronically by downloading the bank’s app on Google Play.
When applying for a Citadele credit card, it is worth considering that:
- the annual interest rate is between 18% and 40%;
- a monthly card fee of between €2 and €6 and a credit payment of at least 5% of the amount used;
- the available credit limit is up to €15 000;
- the card can be used via the mobile app and is received within 3 working days.
This is a debit card from Citadele with the possibility of a credit limit. You must be a bank customer to take advantage of its offer. In addition, the bank offers various bonuses and a discount on payments for the first six months with your card. However, as with any bank, the credit limit conditions are pretty selective.
Banknote virtual card
However, you can use a new service from a well-known pawnbroker Banknote if you need money without additional insurance. This will be particularly useful if you cannot transfer funds to your account because of bailiffs.
Important details to know before using the Banknote mobile card:
- the amount available is €2,000 with monthly payments starting from €10;
- no monthly card fee or additional fees;
- interest rates can reach 54%;
- available from 18, with a formal income, and for people with a good credit history.
With a Banknote loan, you can choose a credit line and spend money directly from the virtual card by downloading the app on your phone. Yes, this lender does not offer a physical card or promotions today. However, this will be a smooth process for modern people who need to make an urgent purchase or need extra cash.
In which cases will this or that credit card be suitable?
If you familiarise yourself with the terms and conditions of both credit cards, you may already decide in favor of one, but it’s not all up to you. Understanding the difference between bank and non-bank lenders can help you know where to choose. And the purpose of the loan itself determines a lot.
Let’s look at some of the situations in which it is better to go to one or the other:
- If you need travel, car, or health insurance abroad, Citadele is a good choice.
- If you plan to purchase up to €2,000, which you can pay using an NFC terminal, you can apply for a Banknote loan.
- If you need a financial cushion of up to €15,000, try applying for a Citadele credit limit.
- If you have problems with bailiffs, having a Banknote account and card can help you make the necessary purchases.
Using these four situations as examples, we have defined some life stages where we think a particular lender would be appropriate. Of course, you may have different financial goals, but by thinking about and applying them in both places, you will decide which one to choose.
The right credit card for your goals
The choice between Citadele and Banknote depends on what you need a credit card for. If insurance and reimbursements are essential, Citadele X cards are a solid set to keep you safe when traveling. For digital people looking for flexibility, the Banknote virtual card offers an efficient way to manage your expenses using your phone or watch.
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Before choosing, consider where you get the best deal, faster application processing, and payment convenience. Discover the latest models of the most anticipated phones that can be connected to a virtual credit card. Look out for Google Play apps that complement your trip and make it even more convenient.
