Over and over again, I have been asked by readers to write a report on the “Gebührenfrei MasterCard Gold” (fee-free MasterCard Gold) of the Advanzia Bank. Actually, we only present providers on our special portal that one can unreservedly recommend …
Mix of warning and instructions!
This article of exception is a mix of warning and an instruction of how to use (or take advantage of) the system of the Advanzia Bank cleverly!
2. Here you can go directly to the credit card provider ► www.gebuhrenfrei.com (thrilling offering for educated bank customers).
1. How does the credit card company earn money?
In order that the MasterCard of the Advanzia Bank really remains free of charge for you, you should know how this provider earns money. Following applies:
- unusual high lending rates
How to avoid them can be read in the 3rd part of this article.
- fees at late payments
Again, the banks does little to avoid these for the disadvantage of the customer – more on that later.
These are the costs that the payee of your credit card payment has to pay – just with any other credit card.
Points 1 & 2 are avoidable, point 3 does not matter!
The points 1 and 2 can be avoided, if you know the rules (Terms & Conditions) of the bank well and fulfil them. Point 3 should not matter to you, because this fee is triggered though your card use, but is not borne by you.
2. The ingenious ad of the provider!
Just to say it upfront: the product name “Gebührenfrei MasterCard“ (fee-free MasterCard) is coherent. Especially if one is looking at the extolled product feature of the ad:
No annual fee
The savings banks (Sparkassen) charge even for a grey credit card often Euros 25 per year.
No cash fee
Sticking to the comparison to the savings bank, they often charge Euros 5 per withdrawal. However, this is already the first “trap“ for inattentive customers. More about this further below in the article!
No foreign transaction fee
The card use in foreign currencies often costs at other banks 1-2 per cent in fees. This is really a smart move of the Advanzia Bank, since the interchange fees outside the European Union are often 3 per cent (within the EU only 0.3 per cent).
Additionally, there is the fact that one has an interest-free payment period of up to 7 weeks. This only applies to card payments, not to cash withdrawals.
Let’s go into detail now
3) The System “gebuhrenfrei / fee-free“-MasterCard
3a) Interest-free period versus “usury”-interest
The fee-free MasterCard advertises a 7-week interest-free loan period. That is true. In order to use it completely, one must understand the system of the Advanzia Bank.
It works as follows:
You make payments from the 3rd day of the month, which are accumulated without interest on the credit card account until the 2nd day of the next month.
Now you receive an email in which the credit card statement is included.
Then you have time until the 20th of the month to fully offset the credit card balance via bank transfer.
If you do it that way, you do not pay any fees nor interest. On the contrary, you even had a 3 to 7 week long free loan – depending on the day of payment!
At clever use: interest-free loan!
Let’s take a look what happens, if you do not settle the credit card account on time:
If your transfer is received between the 21st and until the 3rd day of the following month, then a loan rate of currently 19.94% per annum is charged from the day of card payment until the date of full repayment.
This is comparatively unusually high, but no legally unfair usury. That is why we wrote the word in the title in quotation marks. 😉
If you cannot or do not want to settle the entire balance, you should make at least a partial payment of Euros 30 – or from a debt of more than Euros 1,000, it should be 3 per cent of the loan amount.
This way, you pay high interest rates, but the following enforcement consequences will not apply!
- If until the 3rd day of the following month no or insufficient payment goes into the credit card account,
- you will receive an overdue notice (fee currently Euros 4.09) and
- the card is blocked, you cannot make any further payments nor cash withdrawals.
Interest rates will, of course, continue to be charged for each day on which the credit card account is in the red.
From the bank’s perspective the occurrence of this case is not bad, because money is now earned!
Advanzia should love instalment customers 😉
If you should encounter this situation, it is not that bad, because you can unblock the credit card again through an immediate payment of the invoice amount plus interest and notice fee and the game starts again.
In principle, it would even be enough, if you made a partial payment (instalment)!
However, then interest continues to accumulate! This is not recommendable as a permanent condition, because there is no interest-free period of 3 to 7 weeks in the instalment mode. This only applies, if one settles the balance on the credit card account to zero repeatedly!
Important: no interest-free period at instalments!
Moreover, the Advanzia Bank makes it “easy” to miss a payment date, because:
the card statement is sent by e-mail
Tip: Call and say that your e-mail address no longer exists, and ask for the delivery of the card settlement by mail. This is free of charge (not even postage!), unlike other credit card companies.
You can also classify the e-mail sender as non-spam, so that e-mails are not eventually filtered, or you write a note in the calendar.
there is no possibility of direct debit
For example, you can set up at Barclaycard that the entire credit card balance is debited from the current account by direct debit always at the due date. Therefore, no cent of loan interest will ever apply!
If this should not be possible due to a financial squeeze, you can also adjust at Barclaycard that the minimum rate or another freely selectable rate will be debited, so that at least no notice fee is charged and the account will not be blocked.
Unfortunately, this is not possible with the “Gebührenfrei-MasterCard”!
The idea with the standing order (deposit balance reserve)
It would be clever to set up a monthly standing order or generally “park” a balance reserve on the MasterCard.
Previously, this was also possible. At least I got the tip from a reader some years ago regarding the cash withdrawals (we will take a look at the pitfalls in a second).
In the course of researching this article, I contacted the Advanzia Bank staff several times, who gave me the information that too many transferred amounts are transferred back automatically. Balances could only be set up through credits. So for example, if you have returned an order of a mail-order business. This is, of course, no purposeful strategy in our favour!
Interim conclusion: if you pay the card balance on time, everything is free of charge for you! If you exceed the period, it will be expensive. This is good for the bank, as it earns (your/its) money by this.
3b) The “trap” with “€ 0 cash fee”
Although you may be tempted to think that withdrawing cash is free of charge in any case, it is not a proper case of trap, because you can read the exact terms and conditions on the homepage of the bank.
For withdrawing cash, the Advanzia Bank does actually not charge any fee. Thus, the statement “€ 0 cash fee” is correct.
However, loan interest for cash withdrawals apply from the first day (there is no interest-free period of 3 to 7 weeks). Additionally, the interest rate with currently 22.90% per annum is even higher than for credit card transactions.
Since you can actually not “park” any balance on the card, you can only start a transfer for the settlement, when you have withdrawn the money. Considering the posting runs, even very experienced bank customers will find it difficult to avoid loan interest of less than two days. I am looking forward to read your feedback on this subject via the comments feature!
Loan interest instead of withdrawal fee!
The offering of the “Gebührenfrei MasterCard Gold” is directed to a wide audience of credit card seekers. The conditions are such that clever bank customers can use the service completely free and thereby gain benefits that they do not get in many other credit cards.
People, who do not deal in detail with the offer or miss due dates … well, the bank will potentially earn very good through them!
Ideal for people, who have good control of their finances!
It is not my intention to criticize the Advanzia Bank for their conditions or the configuration of the terms. Personally, I am glad that there are many different providers and various strategies. I even love this variety on the market!
… and it is up to us smart bank customers, whether and what we use from such an offering.
For example, the use in the foreign currency abroad is very interesting, as no foreign transaction fee is charged. Moreover, the golden colour design is especially in non-European countries practical, because one normally has to pay a high annual fee in many countries for a Gold Card or has to earn such a card colour through regular and high payments.
At the Advanzia Bank, one gets “Gold” for free!
I am looking forward to learn what you think of the “Gebührenfrei MasterCard Gold” of the Advanzia Bank. Whether you may even apply for it due to this article? Or perhaps you are already a customer and can share experiences, tips and tricks? The comments box is activated!
“Perfect for people, who dominate their finances well”
… be clever and use the Gold Card?
Note for our readers in Austria: At a place of residence in Austria, the card with almost the same conditions is called “free MasterCard Gold“. Find the direct link here ► https://www.free.at/.
Further exciting articles about credit cards:
- Data sheet of the Advanzia Gold MasterCard (German language)
- How to increase the credit line of the Barclaycard to Euros 9,500
- Basics article about credit cards in Germany