Are credit cards a good idea to build credit in Ireland?

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StackingSilver

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Hi, I'm 22 and just learning how to build wealth. I'm doing a lot of things right with saving but I'd like to know is there any benefit to using a credit card in Ireland over a debit card? I hear a lot of Americans online and on TV going on about how you should use a credit card for everything given you have the funds to pay it off every time, since it builds your credit score. Is there a similar system in Ireland or is it a waste of time? Thanks.
 
No.

There are no third-party credit scoring services active in Ireland certainly for individuals.

There is only the central credit register (CCR) run by the Central Bank which keeps a record for five years of all personal lending: credit cards, car loans, mortgages, etc.

Lenders will check your CCR record before advancing a loan. I’m open to correction but I don’t think Irish lenders see a paid-off credit card as an advantage.

Broadly speaking a lot of US investment advice is useless for Ireland due to a different tax and regulatory regime.
 
Thanks for the reply. What other ways could I improve my CCR records so my bank could advance a larger loan?
 
Avoid gambling transactions - even infrequent ones.

Even in the US I believe the whole idea of having a credit card to build a score is becoming a bit old school...at least for many lenders?

In Ireland it's a function of disposable income/savings, and paying debt on time.
 
I do think it's advantageous to use a credit card instead of a debit card, assuming that you can pay it off in full each month. As previous posters have said, you don't improve your "credit rating". But a credit card does offer some extra protections if something goes wrong. And I think there can be some transaction fees on debit cards that don't apply to credit cards. Downside AFAIR is that the government stamp duty is higher on credit cards.
 
You can also set an instruction for your current account to automatically pay the Cards balance, to avail of up to 7 weeks credit ( I think)

You, of course, have to have the funds available in your current account.
 
I use the AIB Platinum Credit Card and try to pay for everything through it unless a Debit Card is the only option. It is only 0.5% cashback which is pretty insignificant and by the time the stamp duty fees are removed I'm probably only getting back €100-200 but still better than nothing I suppose. Credit Card Cashback is much more appealing outside of Ireland.
 
I was refused a loan in the past as I had such a high credit limit on my credit card despite having no outstanding balance. I asked them to reconsider and was successful on the second attempt so some institutions do or did factor that into their considerations.
 
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