Should I cancel my credit card?

B

BubbleWrap85

Registered User
Messages
17
I don't use it, I haven't used it in years. I had it set so that I paid it off 100% each month, so now the money is either in my current account or it's not, so I haven't used the credit card. I'm just paying the yearly stamp duty so I plan to cancel it. Before I do, is there any obvious reason I shouldn't?
 
I have nearly 3000 of my credit card balance actually in Trading 212 earning interest. So that's currently about 7 or so per month. Interest rates are falling however. I don't pay interest on my credit card balance, just the stamp duty.
 
dubliner8 said:
I have nearly 3000 of my credit card balance actually in Trading 212 earning interest. So that's currently about 7 or so per month.
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You mean you earn €7 p.m. in deposit interest with Trading 212?
Gross or net?
So that's c. 2.8% on deposit?
The best buys says that the best rate from them is 2.4% (from May):

Best Buy - Instant Access & Notice Deposit Accounts

Rates are frequently updated. Information last changed: 24 April 2025. Highest Instant Access Rate (Excluding Offers with Fees, Introduction Rates & Bonus Rates): €1+ - BluOR via Raisin.ie - 2.44% Selected Instant Access & Notice & Money Market Products: Advanzia Bank 2.73% "Special Rate"...
www.askaboutmoney.com
dubliner8 said:
I don't pay interest on my credit card balance
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How come?

Do Trading 212 let you fund a deposit account with a credit card?
 
@ClubMan Yeah it is going down from 2.7 to 2.4 next week. Gross.

Re no interest, I make sufficient payments each month to cover the full amount.

Re T212, they receive the money as a bank transfer. I have a complicated circular way with which I use the credit card to do this and won't be publicising how.
 
dubliner8 said:
Re T212, they receive the money as a bank transfer. I have a complicated circular way with which I use the credit card to do this and won't be publicising how.
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So why mention it in the first place if it's your own big private secret?
dubliner8 said:
I have nearly 3000 of my credit card balance actually in Trading 212 earning interest. So that's currently about 7 or so per month. Interest rates are falling however. I don't pay interest on my credit card balance, just the stamp duty.
Click to expand...
 
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BubbleWrap85 said:
I'm just paying the yearly stamp duty so I plan to cancel it. Before I do, is there any obvious reason I shouldn't?
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To look at it a different way is there anything to be gained by changing your habits and using your credit card more? All you really need to do is cover the cost of the stamp duty to break even as such.

Your credit card might have a reward scheme which could offset the stamp duty. As far as I know AIB is the only provider currently issuing a card with such a scheme. I do know some old Avant card also offered monthly cashback.

Without a credit card you need to keep money in your current account to cover all potential expenditures. You likely earn no interest on that. With a credit card you know with certainty how much is due and when which means you can put your expenses money to work the rest of the time. We're not talking about a fortune here but over the course of a year it could chip away at €30.
 
One further small benefit of a credit card is the charge back function. You can initiate a charge back within 120 days of a transaction if you believe you have not received the goods or you suspect fraud. It is very rare I use it but I have found the threat of it seems to motivate providers into correcting issues. At least twice last year I have been issued legitimate refunds after mentioning a charge back where I don't think they would have acted otherwise.
 
dubliner8 said:
I have nearly 3000 of my credit card balance actually in Trading 212 earning interest. So that's currently about 7 or so per month.
Click to expand...
After DIRT you’re making ≈€60 a year interest and €30 of that is stamp duty.

It sounds like a hassle for €30 a year unless you can automate everything. And if you can’t there’s a chance you slip up and pay credit card interest.
 
ificandream said:
One further small benefit of a credit card is the charge back function.
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With EFT when the money has left your account it’s gone. With a credit card you have between 120 and 180 days to challenge a transaction. That’s a long time.

I have a €12k limit in my credit card and the next time I buy a car I plan to put as much of it through the credit card. Even the threat of a chargeback is useful if a car develops mechanical problems.
 
I have one of the Avant money credit cards with 1.25% cashback per month up to 15 euro. Generally make 50-80 per year on it after the 30 euro stamp duty.

Having the card also means I’m able to keep more money in my savings accounts rather than my current account. So the extra interest I earn this way is an added perk.

We’re getting one of those Aer credit cards too for the travel insurance and to book the big holiday on each year for the two free flights.
 
@Dr Strangelove I'm fine with this adding to the other money I am building up outside of this to get overall more interest. Each lodgement gets me out of the house and doing some steps so it's an enjoyable thing, so no chance of me slipping up really.
 
@ClubMan I'm just a bit paranoid about the entities stopping any part of the process; and it's not rocket science so people should be able to figure out themselves from the myriad banks available in the market what they need to use to do it.

Also T212 allow you deposit up to 2000 fee free using any card.
 
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