Obtaining a Credit Card

Written by David Creighton
for Expats.cz

Credit card culture is developing fast in the Czech Republic, and it´s becoming easier to do business simply using a piece of plastic. Of course, you can use your credit card from your home country here, but it´s also possible to apply as a private individual to a Czech bank for a credit card.

The process of obtaining a card varies from bank to bank, but in general it´s fairly straightforward. Remember that there is sometimes confusion in the Czech Republic over the difference between a debit card (debitní karta) and a credit card (kreditní karta), partly because the Czech term platební karta (payment card) can mean both credit and debit card. You should make therefore it clear which type you want to avoid any misunderstanding.

In the Czech Republic the debit card is used for withdrawing money from a cash machine (bankomat), or to make cash transactions, where your card is swiped through a machine and you key in your PIN to verify the transaction (or you sign the receipt).

A credit card is used in the same way as anywhere else, including to withdraw money from cash machines. The main difference between the credit and debit card is that when paying by the latter you must have sufficient funds for the transaction to be accepted.

As elsewhere, there are certain standard rules governing credit card use, for example you have to be at least 18 to obtain one. Otherwise, benefits and interest rates vary, so of course it´s best to consult your bank in order to get the best picture. Some banks, particularly branches in the centre of Prague, have English-speaking staff that can help you if you don´t speak Czech.

How to apply

The procedure for obtaining a credit card varies from institution to institution. But all banks will want some proof of identity when you apply for a card, so take at least two forms to be on the safe side. A passport and a driving licence (if you have one) will suffice. Then you should show them that you at least have temporary residence (for EU citizens) or long-term residence (non-EU citizens), and the bank will then verify that your address details are correct. Of course you will need to prove to the bank that you have sufficient means to be able to use a credit card and so it will probably ask to see your employment contract and/or a statement of your income, if you are an employee. If you are working solely on the basis of a trade licence (živnostenský list), you will have to produce it, and your tax return for the previous year. Depending on your situation you may need to show tax returns from further back. Some banks will also require you to show bank statements for the last three months, so it´s always a good idea to take them with you, although if you already have a current account with the bank you are applying to this may not be necessary.

A bank has the right to refuse granting a credit card if it feels that you don´t meet the criteria for obtaining it. As a very rough guide you should have a net minimum monthly income of CZK 8-10,000 at least to qualify for a card.

Below is an survey of the basic procedures for obtaining a credit card with several major Czech banks. This intended to give a general outline of the basic requirements. Of course, it isn‘t definitive, and for full details you should consult your bank.

Česká spořitelna
Česká spořitelna may issue credit cards to foreigners, based on certain conditions, and at the discretion of the individual branch, where you should apply. First of all you should have permanent residence (trválý pobyt) to prove that you are based here. ČS will also ask to see a statement of your income from your employer. If you work on the basis of a trade licence then the situation described above applies. ČS will also look at your bank statements for the most recent three months. For more information see www.csas.cz 

An alternative is the WorldClass Package offered by the Expat Center of Česká spořitelna. This service is one of several the Center offers to expats, and the WorldClass Package includes a current account, debit card and credit card. For the latter you will need to show proof of employment, and if you work on the basis of a trade licence you will need to show at least one tax return. The WorldClass Package costs CZK 390 per month and can be terminated at any time. The Expat Center is located at Rytířská 29, Prague 1, Tel. 224 101 630, e-mail: expatcenter@csas.cz

ČSOB
The procedure for obtaining a credit cards with ČSOB is similar to that at Česká spořitelna, although you need only have long-term residence (dlouhodobý pobyt or temporary residence (přechodový pobyt) for EU residents) to prove that you are based here. The bank will then verify your address. The bank will also ask to see your employment contract if you are an employee, as proof of income, and previous bank statements for the last three months. If you work on the basis of a trade licence, then you will have to show it, and your tax return for the previous year in order to meet the bank´s requirments. For more information see www.csob.cz

GE Capital Money Bank
GE Capital Moneybank doesn´t issue credit cards to foreigners.

HVB Bank Czech Republic
HVB can issue credit cards to non-Czechs based on certain criteria. You should have at least long-term (or temporary residence for EU nationals). The bank will then verify your address. The bank will also ask to see your employment contract if you are an employee and previous bank statements for the last three months. A minimum monthly income of CZK 9,500 (net) is needed before you can apply for a credit card. For more information see www.hvb.cz

Komerční banka
Komerční banka can issue credit cards to foreigners based on certain conditions, and at the discretion of the individual branch, where you should . First of all you should present your residence permit (permanent or temporary (EU residents)) to prove that you are based here. The bank will then verify your address. The bank will also ask to see your employment contract if you are an employee and confirmation of income for the last three months. If you work on the basis of a trade licence then you will have to show it, and your tax return for the previous year in order to satisfy the bank. If you can prove you have sufficient funds then a credit card is likely to be granted by the bank. For more information see www.kb.cz

RaiffeisenBank
Raffeisen Bank issues doesn‘t issue credit cards to foreigners.

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