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French -v- British credit cards?


Kitty
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I have done a search and can't find the answer.

What do Forum members use for credit cards here in France, when you live here permanently?

If you continue to use your British credit card, how do you settle the monthly account (online, perhaps?)?

I would like a French credit card but have been told by my Credit Agricole bank manager that they don't do them here.  He said French people always use debit cards.  I don't like using debit cards to buy things, especially online, because of fraud.  Then I see from a post on this Forum that C A have a Mastercard (Cartwin?) - I shall be revisiting him.

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Hi,

      We use a Mastercard debit  card from CA, which comes as part of a package with 2nd card, insurance, internet access, and overdraft. Cost about 8€ month.

      I believe you can also now get a combined debit and credit card , but we have an aversion to credit.

      We know many friends who use UK credit cards for all their transactions , and do not have any idea how much this is costing them. In addition to the usual commission for currency exchange ,and the surcharge for cash withdrawals, it is difficult to see by how much you have been rooked on the exchange rate they give you ,by the time you get your statement.

      Nationwide appears to be the best card supplier, but if you don't have an account before you leave the UK , I believe it is impossible to open one.

      Having said all this , if you have a UK account with a credit card keep it alive, for use when you go over there, and for internet purchases.

      For settling our UK credit card bill we have set up a direct debit to pay each months demand in full; that way you get up to 6 wks credit for no cost.

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The standard CA carte banquaire Mastercard comes with the choice of immediate or deferred debit.  If you choose immediate debit, all transactions are debited to your current account on the day.  If you choose deferred debit, then all transactions (other than ATM cash withdrawals) are debited to your current account in one go, typically on the 10th day of the following month.  In that respect, it's no different from a UK credit card which is paid off in full each month.

As far as on-line fraud is concerned, provided you notify the bank of any suspect transactions, you have no liability for them and the bank must re-imburse your account.

I have a one such card and I use it for everything costing over 5€.......[;-)]

 

 

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If you go the UK credit card route then you can pay it by direct debit each month (either the minimum amount each month, the full amount,or a fixed sum, as you chose) or with a UK cheque as per.  Nationwide is really the only way to go as you get a realistic exchange rate.  If this isn't an option for you, then make sure you don't pay a fee for each transaction as then if you use it for small sums, it can result in some ludicrous payments - a couple of quid just for the privilege of using it say, for  the autoroute credit card queue, before you even start paying the actual cost.  Capital One, I know for sure, don't charge a transaction fee - I have no information on any others.  But you won't get one unless you have a legitimate UK address.

As said above, credit cards as we know them in the UK are pretty uncommon in France - it's normally either an overdraft or pay off every month as the other two have explained.

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I had a look at that Minnie - the answer to Cathy's question then is probably just about how much each costs - the apr's on the Auchan card look a bit higher than Capital One is at present but so much depends on how interest rates stack up in the Eurozone versus the UK - and, as we know so well, these go up and down like a lift.
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The problem with Visa or Mastercard debit cards issued by French banks, are that they restrict the amount you can debit against your bank account in any particular week and month, regardless of how much money you have in your account.

Although, I understand this is mainly for fraud prevention, it can be extremely inconvenient if you are planning onmaking some large purchases, or are on holiday abroad.
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I have a Gold Mastercard from Crédit Agricole which is a debit card on which I can draw up to 1500 in a week. Payment is deferred to the 27/8th of the month.

It has the advantage of acting as travel insurance if I pay my transport with it.

I also have had a Crédit Agricole credit card for 10 years. It is quite wrong to say that they don't exist. Mine used to be called a Carte Open, but It has recently been renamed Supplétis

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Did anybody say they didn't exist?  My own words were "credit cards as we know them in the UK are pretty uncommon".

By that I meant credit cards which you can pay off over years and years, not deferred debit cards as the CA gold mastercard is.  The Auchan card is like this, as may be your CA credit card, I don't know.  But there are far fewer of these here, it appears to me, than in the UK and the US.

I guess Cathy needs to clarify what she means by a credit card.

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I was under the impression, but I might be wrong, that the lack of French credit cards and the way they are used is to do with this maximum amount of debt thing. Apparently your total debt repayment on all loans per month can be no more than 1/3 of your monthly take home salary. If its true then I think its a really good idea and ensures people don't rack up loads of debt like in the UK.

You can keep your UK credit card without a UK bank account, I do this. I should add that I had these cards before I moved to France. You can certainly pay Barclay Visa and MasterCard and American Express with a Euro cheque drawn on your French bank. You get the same rate as they use when you buy in Euros, not much of a profit in it for them which is why they don't broadcast this facility. I guess one day they will work it out and change the system.

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[quote user="Cathy"]

I have done a search and can't find the answer.

What do Forum members use for credit cards here in France, when you live here permanently?

If you continue to use your British credit card, how do you settle the monthly account (online, perhaps?)?

I would like a French credit card but have been told by my Credit Agricole bank manager that they don't do them here.  He said French people always use debit cards.  I don't like using debit cards to buy things, especially online, because of fraud.  Then I see from a post on this Forum that C A have a Mastercard (Cartwin?) - I shall be revisiting him.

[/quote]

Cathy,

To answer your original question, I hope.

Because I expect to be travelling back to the UK at least once a year (elderly relation visiting), I have kept my UK bank account and credit cards.  I use the UK cc when in the UK, and pay by by direct debit if required when in UK, or via online banking when back in France.  If needed, I also use the Nationwide cc to pay for things here, because it doesn't charge extra for use in France. 

In France I use the CA immediate debit card because I decided that the delayed cc was not worth the extra money for the "perks" it did not give you.  It saves having to carry a chequebook or large amoutns of cash.  I just have to ensure that there is enough in the account, and then I forget all about it and use it as if it were a cheque / cash etc.  If you need to buy something "over the day's limit" using a cheque (afik) gets round that one.

Others have said that cc's as known in the UK do exist - but I have no experience of them.  Again, from memory, the CA Cartwin, is a delayed debit card (ie you have to settle the bill each month but at a time you chose), but as I wasn't interested once I found out the costs and the lack of flexibility I am afraid I have not studied it further.

This example may not suit your situation, but I like to keep things simple if I can.

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[quote user="cooperlola"]

Did anybody say they didn't exist?  My own words were "credit cards as we know them in the UK are pretty uncommon".

By that I meant credit cards which you can pay off over years and years, not deferred debit cards as the CA gold mastercard is.  The Auchan card is like this, as may be your CA credit card, I don't know.  But there are far fewer of these here, it appears to me, than in the UK and the US.

I guess Cathy needs to clarify what she means by a credit card.

[/quote]

the OP said

"I would like a French credit card but have been told by my Credit Agricole bank manager that they don't do them here

That seems to me to say that they don't exist, when I know full well that they do.

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Credit Cards do indeed exist in France and are widely issued by the main French banks like Soc Gen.

Indeed one of my French friends was complaining just the other day about people she knew who had over extended themselves on credit card debt!

In rural France they are probably less common, because of lower prevailing local incomes.
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I have two french credit cards, not deferred payment cards, but exactly the same as in the UK.

My (French) colleagues in work also use actual credit cards, so I don't think that they're at all unusual. 

I suspect this idea arises because relatively few Brits have French work contracts and monthly payslips which are required on application.

 

Aly

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Thank you for all the advice, which I have read out to my husband so we can decide what to do.  Your comments have been very useful indeed.

I'm book in to see my bank manager this week to question why he said credit cards do not exist, when clearly they do.  He did issue me with a debit card at the time and so perhaps he was trying to promote that.  I'll report back.

In the meantime, any other advice most welcome.

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[quote user="Cathy"]

Thank you for all the advice, which I have read out to my husband so we can decide what to do.  Your comments have been very useful indeed.

I'm book in to see my bank manager this week to question why he said credit cards do not exist, when clearly they do.  He did issue me with a debit card at the time and so perhaps he was trying to promote that.  I'll report back.

In the meantime, any other advice most welcome.

[/quote]

My main advice would be to avoid them if possible..the % rate is crippling.

I pay a high interest rate but also compulsory insurance.

on a balance of around -4500 euros I paid 150 this month, of which interest was 49, insurance 14, and the rest capital.

BTW a lot of people call them 'credit revolving' (with a French accent)

If you mention that you might get a more understanding look than if you say something like 'carte de crédit'.

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Credit cards are fine provided you live within your means and use them properly. You can usually actively avoid signing up for the insurance and if you pay them off fully by the due date you pay nothing. This is what we use credit cards for.
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[quote user="minnie"]Credit cards are fine provided you live within your means and use them properly. You can usually actively avoid signing up for the insurance and if you pay them off fully by the due date you pay nothing. This is what we use credit cards for.[/quote]

So what is the object of having one in France when you can have a debit card and pay at the end of the month unless there are other advantages?

I have UK ones which I use here (in France) becuase of what they offer. One I use for airmiles, another gives me 3 years warranty on electrical equipment and another gives me free travel insurance. Don't use any of them much like once a year.

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[quote user="NormanH"]

My main advice would be to avoid them if possible..the % rate is crippling.

[/quote]

Not if you pay your debts on time. It is not a good idea to borrow money from credit card companies despite the fact that lots of people do.

For a long time I have believed that James Brown (and now Darling Darling) should have stemmed the rise in personal debt in UK and a good start would be to increase the minimum monthly % repayment - up from the current 5% (?) to at least 25%. This would have the added benefit of reducing monthly interest charges but perhaps that is too sensible.

John

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The object of my having a credit card in France is that I travel annually to visit my daughter in New Zealand and require a credit card to pay for flight etc - there's no insurance with debit cards. I also use it for buying goods online.
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[quote user="Iceni"]

[quote user="NormanH"]

My main advice would be to avoid them if possible..the % rate is crippling.

[/quote]

Not if you pay your debts on time.

[/quote]

We put most of our monthly spend on credit card and clear it by direct debit each month.  Why should I have money sitting in someone else's account when it could be sitting in mine? I have several cards and use different cards depending on the type of spend: one gives me free flights, one gives me good exchange rates, another gives me 1% cash back.  All give me insurance.  I also have a few store cards; taken out to get  10% of the bill and never used again.  Debt is nothing to do with using credit cards - it's to do with self control (or lack of it).

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