According to a recent survey by the Irish League of Credit Unions (ILCU) and independent research company iReach, over half of the population of Ireland own a credit card but the majority are unaware of what interest rate they pay and 40% don’t know how interest is applied.
So that got us thinking, could we be saving money?
Here are just a few tips to make sure you’re getting the best deal with your credit card.
Compare interest rates
First of all, make sure you know what your current interest rate is. If you already do, then compare it to that of other providers to see if you could get a better rate.
Along with this, you should also be aware of stamp duty and other regular charges that may apply to your credit card. Compare what you’re paying with other credit cards to see if you could get a better deal.
Use the CCPC comparison tool
It’s actually pretty easy to compare these things because there’s a simple, free tool for it, which you can find here.
It spells out the fees and benefits of the credit cards available and there’s also a handy calculator that will tell you how long it will take to clear your existing debt.
You might be able to switch to a credit card with a lower interest rate, which will save you money. You might also be able to switch to a card with 0% on balance transfers, which means you pay no interest for a set amount of months, saving you even more money. But remember that this will only apply to your pre-existing debt, and you will pay interest on any additional purchases.
Learn how interest is applied
Since the survey found that 40% of credit card owners in Ireland aren’t aware of how interest is applied, we thought this one was worth pointing out.
If you pay your bill in full before the due date, you won’t be charged interest. If you only pay off the minimum repayment each month, you’ll pay more in interest, and it will be harder to reduce what you owe on your card. You can find out more about how credit cards work here.
Providers usually charge different rates depending on whether you use your credit card for purchases or withdrawals.
If you have a credit card, make sure you’re getting the best deal you can. Check out the CCPC Credit Card Money Tool to compare different deals from various providers.
