Credit cards
What you need to know about credit cards
Credit cards let you borrow money up to a set limit and repay it later, but interest rates and fees can be high if you don’t pay your balance in full each month. This page explains how credit cards work, what appears on your statement, how interest and fees are charged and the key things to check before using or switching your card.
What should you know before using a credit card in Ireland?
- Credit cards are a flexible way to borrow money for purchases
- Your provider sets a credit limit and sends monthly statements
- You will pay an annual Irish government stamp duty charge on credit cards of €30
- Interest rates vary and can be very high – use CCPC’s Credit card comparison tool to find out what all credit card providers are offering customers
- Paying only the minimum balance can lead to long-term debt
- Watch out for additional fees like cash advance charges and late payment fees
What does your credit card statement include?
Each month, your provider will send you a statement showing:
- How much you spent since the last statement
- Any cash you withdrew using your card
- Any interest due
- The total balance – this is the total amount you owe
- The minimum payment that must be made by a set date, called the due date
The minimum payment is usually around 2% to 5% of the total amount you owe however, this can vary slightly depending on the card provider. It is important to try to pay off all or as much as you can of your monthly balance. If you only pay off the minimum balance each month, it will cost you a lot in interest and could take several years to pay off a large balance.
How should you manage your repayments?
To avoid late payment fees and keep your credit card debt under control:
- Set up a direct debit to pay your bill every month before the due date
- Choose to pay a fixed amount or a percentage of the bill
- Try to then pay the outstanding amount in full
If you are worried about credit card debt, please refer to our page on managing debt.
How is interest charged on credit cards?
The amount of interest you are charged depends on the Annual Percentage Rate (APR) and how you use your card.
APR is the annual rate of interest charged on a loan. It includes all costs over the loan term, such as setup charges and the interest rate. You can use the APR to compare different loans, as long as you compare them over the same term (e.g. 3-year loans).
Interest rates on credit cards can range from 13% to 22.9%, sometimes higher than overdrafts and personal loans. Use the CCPC Credit card comparison tool to check and compare the credit card rates from all the providers in Ireland.
When do you pay interest?
- If you pay your bill in full before the due date, you won’t be charged interest. This is called the interest-free period, which is generally about 56 days.
- Most providers don’t offer an interest-free period for cash withdrawals, so you’ll be charged interest from the date you withdraw the cash.
- If you only pay off the minimum repayment, you’ll pay more in interest and it will take longer to reduce what you owe.
- If you pay off part of the bill, you may still be charged interest on all your purchases from the day you bought them.
What if you use your card for both purchases and withdrawals?
Providers usually charge different rates depending on whether you use your card for purchases or cash withdrawals. If you:
- Use your card for both
- Regularly carry over balances from month to month
Check the terms and conditions of your agreement so you can work out how you are charged. You may get a better deal elsewhere, so if you’re not happy, see if your provider is willing to offer you a better rate or consider switching.
Use the CCPC Credit card comparison tool to check and compare the credit card rates from all the providers in Ireland.
What other fees and charges should you expect?
In addition to interest, you may have to pay other charges for using your credit card. Use the CCPC credit card comparison tool to check and compare the credit card rates and all of the charges from all the providers in Ireland.
| Fee Type | Description |
|---|---|
| Over credit-limit fee | Charged each time you go over your agreed credit limit. Your provider may refuse further transactions. |
| Cash advance fee | Charged each time you make a cash withdrawal. Some providers charge this even if you’ve paid enough into your account to cover the withdrawal. |
| Foreign exchange fee | Charged for every purchase and cash withdrawal in a currency other than euro. |
| Late payment fee | Charged if you don’t pay at least the minimum repayment by the due date. |
| Unpaid item fee | Charged if your payment is returned unpaid (e.g. failed direct debit or bounced cheque). |
| Replacement cards and PIN* | You may have to pay a fee to replace your card or PIN if lost, stolen, or forgotten. |
*PIN (Personal Identification Number) is a unique code used to authorise transactions. It is personal to you and should be kept secret and separate from your card. You can change your PIN if needed either through your bank’s app, at an ATM or by contacting your provider.
What is Government stamp duty on credit cards?
You have to pay an annual tax, currently €30, usually deducted from your credit card account on 1 January for each account held at any time in the previous year.
- Stamp duty is charged per account, not per card
- No matter how many cards operate on the account, only one stamp duty charge applies per year
Check the Revenue website for information on the amount of tax you must pay and how it’s collected if you’re transferring your balance or closing your account.
Can you add another authorised user to your credit card?
Yes. You may ask your bank or card issuer to send an additional card to someone you name (e.g. your spouse or partner). By doing this, you give them permission to spend money on your card up to its credit limit – and you are liable for any debts they run up.
Stamp duty is charged on the account, not the number of cards – so only one charge applies per year.
How do you switch your credit card provider?
Credit card providers may offer new customers a low interest rate (or no interest) for a set time if they transfer their balance to a new card.
Use the CCPC Credit card comparison tool to check and compare the credit card rates to see what rates are currently on offer, and check:
- How long the low rate will apply
- Whether it applies only to the transferred balance or also to new purchases and withdrawals
- What the rate will be after the introductory offer ends
