Credit cards are a convenient and flexible way to pay for goods and services. They also allow you to borrow money, but they can be an expensive form of credit and can become difficult to manage, particularly if used for long term borrowing.
If used wisely, credit cards have a number of benefits.
- They are convenient. You can use them in Ireland or abroad to pay for goods or services and to withdraw cash.
They give you short-term credit. There is generally an interest-free period for up to 56 days for purchases. (Some cards may also offer an interest-free period on cash withdrawals.)
They are the most widely used way to pay for things on line or by phone.
They are commonly needed for booking services such as car hire and hotel accommodation.
They are safer to carry than cash.
But there are also risks associated with credit cards. For example, you may be tempted to buy on impulse and you can easily build up a large debt if you don‘t pay your credit-card bills on time each month. This booklet explains the advantages and disadvantages of credit cards and gives you tips on how to keep your costs down when using a credit card. It also gives you information to help you choose the right card for your needs.
Contents
Introduction
What is a credit card?
How do I pay my credit-card bill?
Credit-card costs
What is the interest-free period?
How can I keep my costs down?
Paying off your full balance
Paying some of your balance each month
Paying only the minimum repayment
What can I do if I am having trouble paying off my credit-card bill?
Tips to help you save money
Introductory offers for balance transfers
Keeping your credit card safe
Disputed purchases and withdrawals (transactions)
Using your credit card abroad
Payment protection insurance
Dos and don’ts
