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Credit Card

  • 06-03-2021 2:31pm
    #1
    Registered Users Posts: 38


    Hello all,

    Just looking for some guidance.

    I’ve had a credit card for a few years and have never had the need to use it.

    I’m thinking of getting rid. I have enough savings to never (hopefully) need it.

    I know there is a €30 charge per year. Does the year run Jan-Dec or Apr-Mar. If I cancel my credit card now will the charge be paid from 2020 or is the charge paid in April to cover the previous year (ie 2020 €30 charge covered 2019).

    Is the only way to cancel the card to return it by post? That seems to be the case.

    Is there any real need for a credit card that I’m not thinking about? I know sometimes when abroad you may need it to rent a car. Any other likely reason?

    Thanks in advance


Comments

  • Registered Users Posts: 2,099 ✭✭✭lau1247


    If you are buying good and services anyway with debit card currently (everyone has to spend something anyway during the year, right?), why not consider a credit card with cashback perk. They effectively pay for the stamp duty themselves if you meet the bank's criteria.

    Similar to Mr.S said, I like credit card too as a backup tool. Use it for emergency and if you have to spend, only spend what you can afford and you will be fine. Set up payment by direct debit and you won't have any issue with missed payment, etc.

    One other point to note, not many people actually ask for credit limit increase (I think), I find that it is easier to get limit increase as you go along maybe every 6 month to a year, even if I don't need it.

    My personal opinion, it is better to have the increase limit there and can use it when needed than not having it and be at the mercy of the bank approving it when you need it.

    West Dublin, ☀️ 7.83kWp ⚡5.66 kWp South West, ⚡2.18 kWp North East



  • Registered Users Posts: 18 zbeshek


    BlondeLou wrote: »
    ...I’ve had a credit card for a few years and have never had the need to use it.

    I’m thinking of getting rid. I have enough savings to never (hopefully) need it.

    I know there is a €30 charge per year. Does the year run Jan-Dec or Apr-Mar. If I cancel my credit card now will the charge be paid from 2020 or is the charge paid in April to cover the previous year (ie 2020 €30 charge covered 2019)...

    I was just about to ask this same question. Don't remember when mine credit card was in use last time.

    If you didn't close before 1st April and will do so, let say on June, you will be charged for whole next year. According to Revenue:

    "...Your financial institution will generally collect Stamp Duty on 1 April, in arrears, unless you close the account during the year. The tax year for credit cards runs from 2 April to the following 1 April...

    ...If you close your account during the year and do not open a new account, a Stamp Duty charge arises for the preceding year."


    https://www.revenue.ie/en/property/stamp-duty/other-stamp-duty/financial-cards/credit-cards-charge-cards.aspx

    For now it make sense to hold it till March 2022 and close then

    Can anyone confirm?


  • Registered Users Posts: 3,635 ✭✭✭dotsman


    zbeshek wrote: »
    Can anyone confirm?

    Yes, that is correct.

    However, I would stress the points raised above. Credit cards are far superior to debit cards when it comes to car rentals as well as high-priced purchases, especially risky ones such as booking holidays (flights and/or hotels) well in advance or purchasing furniture (where it may not be due to be delivered for several months).


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