Making Cents with Liam Croke — What bank offers the best credit card terms?

Liam Croke

Reporter:

Liam Croke

Making Cents with Liam Croke — What bank offers the best credit card terms?

CREDIT CARDS tend to have much higher interest rates than any other form of credit, but that can depend on whether you pay the full amount due on time. If you do, your line of credit is 0%, if you don’t you could be charged as much as 26.6% per month on the balance outstanding.

It goes without saying, but let’s say it anyway, it’s important you use your card wisely. In this article, I’m going to look at what each institutions offerings are i.e. what their APR on purchases is, what interest rate is charged on balance transfers, salary requirements etc.

So, if you are looking at applying for a card, or thinking about transferring to a new provider, this will help you compare everyone on a like for like basis.

Bank of Ireland
They have 4 cards but I’m going to concentrate on just two, their Platinum and Aer Card which is used in conjunction with Aer Lingus.

If you spend more than €500, BOI offer a lower rate of 6.90% if you choose to pay the amount owing over 12 months, in equal instalments. This could be, a very good alternative to choosing a personal loan for the purchase, which might be charging you a higher rate.

KBC
They have 2 cards i.e. their cash reward card and student card, but I’m going to just concentrate on their cash reward card.

Like BOI, they have a facility where they offer a lower rate (8.99%) if you make a purchase €500 and you want to spread the cost of paying it back in instalments over a 12, 18 or 24 month period.

Important to note, because I’ve seen others get caught out with balance transfers and new purchases. The 0% rate only applies on the amount transferred and not any new purchase. Some people think any transaction on the card for 6 months or whatever the time period is, 0% is applied, and it’s not, it’s only on the amount transferred. Use your card to buy something and you will be charged 18.25%.

AIB
They have four cards but I’m going to concentrate on just two, their “be” and Platinum Card.

Avantcard

They have 2 cards, their One card and their Reward+ card.

PTSB
They have just one card, their ice card.

Ulster Bank
They have 3 cards but I’m going to concentrate on just two, their Classic and Gold Cards.