How to use your Credit Card responsibly

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Credit cards can provide great flexibility and financial freedom.

A credit card can provide you with no transaction fees when you purchase goods and services*, as well as interest free credit for up to 56 days – depending on the financial services provided.

This means that if you pay your bill in full each month you can avoid paying any interest on what you buy and some banks offer interest free credit for cash advance transactions as well.

Depending on your provider, you can also get additional features that save time and money such as an instalment plan option, which helps you break down larger purchases into bite-size chunks at a lower rate.

When it comes to monthly payments you can choose a range of options to pay the balance including paying a portion of the monthly balance, the whole amount, or the minimum amount required.

It is important that you are in control of your credit card and that your card works for you.

Here are some Dos and Don’ts to help you use your card responsibly:

Dos:

  • Do check your credit card statements and set up direct debit to ensure you don’t miss your payments
  • Do check the available repayment options in advance of making a big ticket purchase to help decide whether you should purchase it on your credit card instalment plan or if using savings or taking out a loan is more suitable.
  • Do clear off your balance in full whenever you can to avoid paying interest.
  • Do understand the different features and benefits of your credit card as well as the fees and charges. If you are switching credit card providers you may be eligible for introductory offers on new purchases or any balances that you move across.
  • Do understand if there are reward programmes or specific benefits per card.

Don'ts:

  • Don't use minimum payments to pay off your credit card. They may look very convenient but will cause the interest to build up quickly and will take you significant time to pay off even for a small balance.
  • Don't miss paying your credit card bill on time. Missing payments will add charges to your account and may cause you to go into arrears which could impact your credit profile and ability to access lending in the future.
  • Don't use your credit card to withdraw cash unless you really have to as most banks charge interest from the first day.
  • Don't overspend on your credit card. Be mindful of your limit and consider if it’s aligned to your needs. If you feel it is too high contact your bank to decrease it.

* Cross border handling fees apply for non-Euro transactions made on BOI credit cards.

Terms and conditions will apply to additional benefits or features referenced in this article. Please contact your Credit Card provider for more information and conditions of additional features.
If you have fallen into arrears or have any concerns about your credit card, please speak with your card issuing bank who will be able to discuss any concerns you may have and will work with you to identify the best solution to get you back in control of your finances.

If you have any queries on your credit card you can chat to us in your nearest branch, or call us directly on 0818 251 251.

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The information contained in this article has been prepared by Bank of Ireland (“BOI”) for information purposes only as is not meant as advice. BOI believes any information contained in the article to be accurate and correct at the time of publishing.
Bank of Ireland is regulated by the Central Bank of Ireland.

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