Need breathing space with card debt? move it

There are many reasons you might want to consider changing credit card providers. For one, you may have an Ulster Bank credit card or even a KBC Bank and your hand is being forced by the exit of these two players from the Irish banking market.

Another reason could be that you have a lot of debt on your card and you want to transfer your balance to a provider that offers 0pc interest for a limited period to give you some breathing space as you are on this loan. try to pay off.

You may take out some credit card debt from time to time but find that the interest rate on your current card is slightly higher and want to switch to one with a lower APR (annual percentage rate).

Even if you have no debt and pay off your balance in full each month, you can earn some rewards or cash by spending a certain amount of money each month on some attractive introductory offers and special purchases. Can be tempted by the ability to earn back.

Whatever you need or want from a credit card, the good news is that it’s good to compare providers thanks to a price comparison tool on price comparison sites such as Bonkers.ie, Switcher.ie and the Competition and Consumer Protection Commission website, CCPC. Quite easy. In other words.

Using these tools, you can compare things like APR, interest rates on balance transfers or purchases, and cashback rewards.

But you should also check if your provider charges an annual fee and whether it supports your preferred mobile payment method (i.e. Google Pay, Apple Pay, Fitbit Pay, Garmin Pay, etc.).

Ultimately, the best card for you depends on what you use it for.

If you’ve accumulated a lot of debt, switch to an provider with a usefully lower interest rate than your current card or charge no interest (or even a much lower rate) on balance transfers for a limited period of time (usually up to three 12 months) can be a good way to save money on your interest payments and get control of things.

For example, AIB’s Click Visa credit card has the lowest APR at 13.8 pc, followed by One Post’s Flex Mastercard at 15.7 pc. Most other cards charge rates between 17pc and 23pc or more. However, neither an AIB nor a post card has an introductory rate on balance transfers or purchases.

A Post’s Classic MasterCard (22.9pc APR), on the other hand, charges 0pc on balance transfers for 12 months, so it may be worth considering as part of a debt management strategy.

You may find that a card with an ‘installment plan’ facility may work better. Available only with Bank of Ireland and KBC (which is still accepting new business), this feature works like a personal loan through your credit card, giving you a low interest rate (less than 10 pc) ) but can pay in fixed monthly facilities. APR) for purchases over €250 or €500.

If you pay off your balance every month, the interest rate on a credit card isn’t likely to be a big issue. In fact, if you only keep your card for occasional use or emergencies and use your debit card more often, switching may not even be worth the bother.

If you use your card a lot, is it worth considering a premium card? “In general, more ‘premium’ or exclusive credit cards offer the worst interest rate, as you’re paying for extra,” said Darrag Cassidy of price comparison site Bonkers.ie.

“However, if you are someone who knows that they will pay the dues in full and on time every month, the interest rate may not be very significant. So in this case you may want to look at cards that offer perks. And with benefits come.”

AIB’s Platinum Card offers some of the best. “This gives 0.5pc cashback on spending between €5,000 and €50,000 over a 12-month period (up to a maximum of €225 per year),” Mr. Cassidy said.

“Another advantage is that if you deposit money into your card so that it is in credit, you can withdraw money from ATMs abroad and not be charged the usual cash advance fee. This is a common feature on credit cards. Used to be but is no longer widely available. The rate isn’t even the worst at 17pc APR. However, the Platinum card requires a minimum wage of €40,000 per year.”

If you use your card a lot but your spending is sensible, non-premium cards offer some attractive rewards too.

Avant Money’s Rewards+ Visa card will give you 1.25pc cash back on select purchases up to a maximum of €12 per month. However, to get this full amount you would need to spend more than €900 per month, notes Mr. Cassidy. “And any expenses on travel, betting, vacations, car rentals, public transportation, flights and hotels are not included.”

At the end of the day, it all comes down to what you use your card for.