Should I cancel my credit card?

[BubbleWrap85]

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?

 

[Premos]

The only obvious reason I have one is to be able to rent a car easily.

 

[Dr Strangelove]

My card provider gave me my stamp duty back as a loyalty bonus after a phone call or two.

I do put about €500 a month through the card though

 

[Brendan Burgess]

Key Post - Do I need to have a credit card?

I've recently been billed for the €30 credit card stamp duty, which has prompted me to question whether having a credit card is necessary again. I make one or two purchases a month, which are paid off immediately. To date, my rationale for having a credit card is for two reasons: To maintain...

www.askaboutmoney.com

 

[dubliner8]

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.

 

[ClubMan]

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.

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

I don't pay interest on my credit card balance

How come?

Do Trading 212 let you fund a deposit account with a credit card?

 

[dubliner8]

@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.

 

[Corola]

Like this?

It means you can use your credit card to top up your Revolut account without Revolut fees - Add debt to your credit card to put money in your Revolut account.

 

[ClubMan]

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.

So why mention it in the first place if it's your own big private secret?

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.

 

[skrooge]

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?

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.

 

[Brendan Burgess]

Without a credit card you need to keep money in your current account to cover all potential expenditures.

This is a really good point.

People keep thousands of euro in current accounts for emergencies or rainy days.

But with a credit card they have an emergency line of credit. €30 a year is great value for that.

 

[ificandream]

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.

 

[7 of 9]

You can also charge back on a debit card.

 

[Dr Strangelove]

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.

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.

 

[Dr Strangelove]

One further small benefit of a credit card is the charge back function.

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.

 

[Des Pondent]

Apart from the many reasons already mentioned for keeping a credit card, as a fee paying AIB customer I would have a lot of 20 cent debit card fees, if I didn't have a credit card.

 

[mathepac]

I would have a lot of 20 cent debit card fees

Just get older like me, no €0.20 transaction fees and quarterly current account fees refunded on the same day as they're charged. I can help you with the ageing process or so former partners and the mods have told me.

 

[Ent319]

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.