Best Free Credit Card in Spain [The Ultimate 2022 English Guide]

If you are travelling to Spain or will be living there, it is always a good idea to have some cash in hand. It is an easier way to get around and will be accepted everywhere. Credit cards are also used in major cities, and if you want to avoid hidden charges and annual fees, this guide will help you find the best one for you. Once you successfully get a Spanish credit card, you will not have to worry about getting your finances in order. In fact, it can be a very valuable tool in managing your money and monthly budget.

Quick Comparison Of The Best Free Credit Cards In Spain

Most banks will charge you an annual fee of around 30 euros a year for a credit card. But why pay a fee if you can get a card that comes for free and can give you the same perks as any other. Here is a brief summary of the free credit cards discussed in this guide:

	WiZink Plus	Open credit card	Tarjeta YOU	ING Direct
No annual fee	√	√	√	√
Apple and Google Pay	√	√	√	√
No cash withdrawal fee	√	×	√	√
No foreign currency fee	×	×	√	√
Annual interest rate	18.36%	19.56%	18%	16.99%
Alert service	√	√	√	√
Need to have an account with the offering bank	×	√	×	√
Insurance	√	√	√	√

5 Reasons Why You Need A Credit Card In Spain

Making Large Payments

For certain bigger purchases like buying or renting a car, the dealership or rental company will ask you to make a deposit, which will serve as security in case of any damages. It might not be possible to make such a deposit on your debit card since you might not have the amount in your bank account. Similarly, for other unexpected large payments like certain medical expenses after an accident, you will need a credit card with a large limit. The benefit of a credit card is that you can choose how to pay back the amount according to your ease.

Making International Payments

If you are travelling abroad for vacation or even a business trip, making payments will be much easier through credit cards. You will not have to carry a lot of cash with you and have to worry about its safety, and credit cards are now accepted at most places overseas. This will make managing your expenses abroad much easier, and shopping a lot more enjoyable. 

Most banks offer a rewards program so you can even earn rewards for the money that you spend, without having to change your spending habits a lot. Moreover, if you are looking to save, or simply want to keep track of your spending patterns, credit cards will make the process easier to monitor.

Withdrawing Money

If your card is not accepted at a certain place or you have unexpectedly run out of cash, you can always use your credit card to withdraw money. This can help both within the country and also abroad.

Online Payments

Online shopping has gained traction in recent years and is increasingly becoming a favored option for getting almost everything that you might need. There is some flexibility in the mode of payment but for most websites, payments made through a credit card are still the only available option.

Protection of the consumer

Generally, credit cards are safer to carry with you than cash and they also protect you against accidental payments and fraud. If you accidentally pay more than the required amount or in case your card has been stolen and is being used by someone else, you can have it blocked and ask your company to recall the payments made. This can be done for up to eight weeks. Therefore, credit cards offer a certain degree of safety and protection against such scenarios.

What Are The Different Credit Card Types In Spain?

There are several types of credit cards which vary according to the methods of payment and the kinds of facilities that are available to you.

Charge Credit Card

A charge credit card is one of the more common types of cards in Spain. Your bank will put together a record of all the payments made on the card in the last 30 days; there is no preset spending limit usually. At the end of each month, you will receive a credit card statement which is designed to be paid off immediately. You will have the option to link one of your bank accounts to make the payments regularly instead of having to deal with them every month. If you do not have sufficient funds in your bank account, you might go into overdraft, which is a kind of short term loan given by the bank (this too, will have a limit). You will also be charged an interest fee on your overdraft, typically lesser than the interest charged on a revolving credit card. If you fail to pay the balance in full, you can also be charged a late fee.

Revolving Credit Card

A revolving credit card works very differently than a charge credit card. This one actually gives you a certain amount of credit, depending on the bank and your credit history. There is a credit limit, which is the maximum amount that you are allowed to spend. Once you have been given this ‘allowance’, everything that you purchase will be deducted from this amount. At the end of every month, you will then receive a statement with a record of your expenses. Revolving credit entails that the credit line will remain available to you over time.

Similar to the charge credit card, you will be choosing your own preferred method of payment. If you are able to pay the entire bill, you can do so via a wire transfer from your bank account and you will not need to pay any interest in this case. However, if you are unable to pay the amount in full, you will have the option to pay in installments instead. In such a case, you will also need to pay a heavy interest fee on the remaining unpaid amount.

Debit Card

A debit card combines the functions of a credit card and an ATM card. It differs from a credit card in that it is directly linked to your bank account. Instead of getting an allowance, you therefore spend directly out of your bank account for any purchases made. Some banks might allow you an overdraft up to a certain amount (as long as the amount is present in a backup account). But usually, you will need the amount to be present in your account. Moreover, they usually have a daily spending limit, so you cannot make very large purchases or deposits on debit cards.

Prepaid Credit Card

Instead of having to carry around cash with you, a great alternative is to have it loaded onto a card. With a prepaid credit card (also called an everyday card), you can load money onto the card when buying it. This can be a great way to budget since your credit limit will depend on the deposit made by you, and you can only spend up to that amount. Essentially you can also think of them as a kind of debit card too, since you can only spend what has been loaded onto them and do not need to pay monthly bills. Moreover, since you are not actively borrowing money you do not need to worry about any interest rates or late fees. To make sure your money is safe, you can only keep the amount you might immediately need on the card, since it is not protected against activities like fraud the same way a credit card is.

What Is The Best Credit Card To Use In Spain?

In Spain, credit cards are more widely used than debit cards. The Banco de Espana estimated that in 2017 there were about 26 million debit cards in circulation while the credit cards in use were nearly double at 50 million. The most popular type of credit cards are the Visa and Mastercard, which are accepted at most shops, restaurants and ATMs. American Express is a slightly less common card. You can get a credit card whenever you open a bank account in Spain, but if you want you can also order a card directly from Visa or Mastercard (but you will have to link it to a current account anyway).

What Are The Best Free Credit Cards In Spain?

WiZink Plus

WiZink was founded in 2000 and is an online-only bank, offering its services through a website and mobile banking. It offers a no-fee Mastercard and also offers 3% cashback on two out of the three categories of food, leisure and travel. You can choose which one you want to avail the facility for. The cashback amount has a monthly limit of 6 euros, which amounts to 72 euros in a year. For the first three months after receiving the card, if you spend 300 euros, you will also get 30 euros cashback.

You will have the choice each month about payment i.e., when to pay the bill. You can pay in full, pay a fixed amount each month or get your balance converted into installments if you cannot pay it in a lump sum. As always with credit cards, be mindful that late or partial payments will mean that you will be charged a high interest rate. The credit card can be linked to another one of your existing accounts via direct debit.

One of the benefits of the WiZink card is that you get free Purchase Protection insurance. Moreover, if your card is stolen or you misplace it you can block it right away using the WiZink app. You will then be issued a new card in place of the old one.

Open Credit Card

This card is offered by the Openbank to customers who have a current account with the bank, and is free as long as you fulfill certain conditions. You must either have a regular minimum monthly income of 900 euros, or use the card at least once a month. If these conditions are not met, you will be charged 2 euros each month for renewing the card. It is a free Visa card which can be used to make in-store and online purchases using a 3D Secure Code System.

To set the credit limit on your card, you must have approval from Openbank’s Risk Department. Once approved, the limit may go as high as 6000 euros a month. There are a number of other benefits too. You get SMS alerts for all of your transactions. If you are travelling and have bought the ticket using your credit card, you are also eligible for travel accident insurance. This includes claims for disability or death which may occur due to any accidents while using the public transport.

Cash withdrawals and payments made in a foreign currency have some additional charges which you should expect to pay.

Tarjeta YOU

This card is offered by the Advanzia Bank and is a free Mastercard only available online. The company does not have fees for cash withdrawals at any ATM worldwide or any foreign exchange commission (though you should still be careful since the bank where said ATM is located might charge a fee of their own!). You will also have a free comprehensive insurance package including purchase and travel insurance by virtue of owning the card.

The card has flexible payment options, and you can decide the amount from your bill that you want to pay immediately, and how much of it you want to defer to later months. Moreover, you do not need to change your bank to get the card and the application process is among the simplest in the market. Their contactless payment and free customer service round the clock are attractive incentives too.

ING Direct

ING bank offers a variety of services ranging from products for individuals and families to those for financial institutions, small businesses and large corporations as well as governments. You can get free debit and credit cards, and withdraw money from ATMs without any charge as long as you have an account with the bank. The cards are free as long as your salary, pension or unemployment benefit of at least a minimum amount is coming in regularly to your account (otherwise you may be asked to pay a fee). Moreover, a unique feature is that you can even turn your cards on and off whenever you like.

Payments for your bills can be made not only through linked bank accounts but also through online services such as Apple Pay, Google Pay and Bizum. If you exceed your spending limit, you can get the first two days of overdraft free, that is, without being charged an interest fee.

You can even get up to 45 interest-free days on your purchases and set up installment plans to pay for your purchases at low interest rates. Moreover, if you are shopping online or from a non-Spanish website there are no international transaction fees if you pay through the card, as long as you fulfill certain conditions.

Bonus: Payback Credit Cards

This is a loyalty program where you earn back a certain percentage of points against the money you spend. This can be attached to your debit card, credit card, websites among other things. The types of rewards might differ for each product. In essence, the credit card companies and retailers agree upon certain deals and offer benefits to the customers. Your exact payback amount will depend on the reward program and your spending habits since you can only earn rewards if you have actually spent money.

Due to the popularity of the idea, the ING bank in Spain also launched a similar service in 2016 when it was still a novelty in the country (despite being popular elsewhere like the United States and the United Kingdom). 

While this is an attractive program, watch out for any hidden fees, and conditions such as the kind of items you must purchase to be eligible for payback.

Conclusion

Credit and debit cards are an essential to carry with you these days. While cash is important (and might even be the only accepted method of payment in rural areas), carrying a card with you will make things a lot easier. Not only will it be a lot less hassle, you will also not need to worry about theft or fraud since credit cards are almost always protected against such incidents. In any case, be sure to carry one with you, for it is almost universally accepted and will make your daily life much easier.