Credit Card

ENMcD

Hi,
Im asking this on behalf of my mom. She is interested in getting a credit card but she would only want to use it for buying flights which would be maybe twice a year and would kind of be an emergency credit card.
She is with BOI so any ideas on what card she should get or what kind of fees would be involved seeing as it would rarely be used? Is there a charge to have say €1000 on it and just leave it on it til it needs to be used?

Thanks in advance

BuffyBot

Credit cards attract a charge of €30 a year government stamp duty. For what you describe, wouldn't a prepaid credit card (something along the lines of that offered by Moneybookers etc) be a better option - where you lodge the cash, and it's used on a "as needed" basis?

You could do that, or open her a current account with a Visa Debit (currently Ulster and PTSB offer them, but BOI will later this year). Indeed, if she's already with BOI and needs a card that can be used occasionally for shopping online/book flights etc the upcoming Visa Debit card might be the best option of all.

ENMcD

I had thought of the prepaid because i have the mastercard one but when i added together the fees for puttin money on the card and the purchase fee id have to pay €50 extra to book flights worth €1200 so thats €1250.. so lots of fees... so with the debit card what fees would be on that for say leaving €1000 on it for kinda emergency money if anything ever happened?

daithijjj

ENMcD wrote: »

I had thought of the prepaid because i have the mastercard one but when i added together the fees for puttin money on the card and the purchase fee id have to pay €50 extra to book flights worth €1200 so thats €1250.. so lots of fees... so with the debit card what fees would be on that for say leaving €1000 on it for kinda emergency money if anything ever happened?

A Debit Card is tied in with a current account so you can only spend whats in the current account plus any agreed overdraft facility. A Credit Card is not, it is effectively a loan from your bank to you.

My Ulster Bank debit card has a fee of 5 euro per annum.

The only way i see a credit card being advantageous, would be for any inclusive travel insurance that may come with the card. Cards differ on this and a magnifying glass over the terms and conditions is needed.

There is also enhanced cover against online fraud with a CC. Ive had a CC and a DC for around 15 years, my CC is used like you suggest, an emergency fund, large purchases, online purchases and flights. Everything else goes on the DC.

To answer your last question, leaving 1000 as an emergency fund for DC use isnt really an issue. If in your shoes, i would just run the current account like normal, put the 1000 into an instant access savings account tied in with the current account and if the emergency ever arises you can just transfer it to your current account online. Meanwhile, the 1000 is earning interest and cannot be spent until it is transferred by you.

cookie1977

What about 3v?

https://www.3v.ie/

ENMcD

Thanks for the replies, a 3v is no use only €350 limit on it..
thanks Daithi for that makes more sense for me now we would prob be better of with the debit card for now and maybe move onto the credit card in a few months

s3129

O2 money card

cookie1977

ENMcD wrote: »

Thanks for the replies, a 3v is no use only €350 limit on it..
thanks Daithi for that makes more sense for me now we would prob be better of with the debit card for now and maybe move onto the credit card in a few months

. The 3V Voucher from which you take the money must be active, or be within two months of its expiry date and the balance of the 3V Voucher that receives the money cannot exceed €500.

https://www.3v.ie/about-3V-vouchers.html

I think 500 is the actual limit. Any better?

ENMcD

.cookie1977
The 3V Voucher from which you take the money must be active, or be within two months of its expiry date and the balance of the 3V Voucher that receives the money cannot exceed €500.

https://www.3v.ie/about-3V-vouchers.html

I think 500 is the actual limit. Any better?

No Cookie because the voucher would expire. Say if I need it for flights the would be for america which cost 500+ also just want somewhere safe to leave say €1000 and its there when needed

cookie1977

A credit card for a new applicant now would probably have a very small limit initially. You might need to query a bank on this. Also if you have money on a credit card that's your own (not credit) and it's lost/robbed/miss used, you wont be refunded your own money. Does your mother work? If not she may also have difficulty getting one in this type of economic environment.

daithijjj

ENMcD wrote: »

Thanks for the replies, a 3v is no use only €350 limit on it..
thanks Daithi for that makes more sense for me now we would prob be better of with the debit card for now and maybe move onto the credit card in a few months

I forgot to mention this. If you go down the DC route for a while, make sure you ask the bank if there are any limitations with the individual amount of any given transaction, just to be safe. You can also inform the bank prior to the transaction, so if, for example, there isnt much traffic on the account the payment wont flag as possibly fraudulent and be denied.

You just dont know with banks these days.

AngryLips

Why would you go with a prepaid credit card?? Their charges are exorbitant and they are so restrictive. At the moment most banks aren't offering credit cards unless you maintain a current account with them. So really her choices are restricted to BOI or MBNA (unless she's willing to change banks). See itsyourmoney.ie for a cost comparison between them.

If she pays off what she spends on the card every month then the only real cost is the Government stamp duty. If there's concern about the credit limit she's given being too high then she has the right to contact the issuer and instruct them to reduce the limit on the card to something more acceptable. If she's flaky with payment she might want to find out what the interest free period of the card is before availing of it. Different cards have different interest free periods. And don't bother with payment protection, it's pointless and a complete waste of money.