Credit Cards and Overdrafts in Switzerland: Costs and Smarter Alternatives
Interest, fees and the habits that keep card debt from growing.
5 min read · Loans & Credit
Cards are convenient, but unpaid balances and overdrafts are among the most expensive ways to borrow.
What credit cards cost
- Annual fees for some cards, sometimes waived with minimum spending.
- Interest on unpaid balances, often around 9–12 % a year.
- Foreign currency surcharges, typically around 1–2 %.
- Cash withdrawal fees.
Example with default values. Open the calculator →
Overdrafts
An overdraft on your account can carry interest of 10 % or more plus fees. It should be a short bridge, not a habit. If you regularly need it, talk to your bank about a cheaper loan or fix the budget.
Better habits
- Pay the full statement each month by direct debit.
- Use a debit card or prepaid card to stay within your balance.
- Set alerts for spending and due dates.
If you carry a balance
Pay more than the minimum, move the debt to a cheaper loan if available and stop adding new charges. Remember that consumer credit rates are capped at 10 % including fees.
See how long a balance takes to clear with the credit card payoff calculator.