Stamp duty on credit cards

[brokeagain]

Hi,
I have a balance on my CC that I want to transfer to a 0% CC like Ulster bank. I want to keep my existing CC for purchases. My question is will I have to pay stamp duty on both cards? It will take me 5 months to clear the balance of €2500. Would I be better off to stick with existing CC provider?

 

[advisor]

Basically by switching to 0% rate you are getting a loan of 2500 over 5 months for 40.00. You need to work out how much interest 2500 would accrue over the five month period. If its more than 40.00 then there's your answer. Just make sure if your not going to use second credit card when balance transfer is paid off that you cancel it. If not you will be paying 40.00 on a card you're not using next year.

 

[brokeagain]

Thanks for your reply. I guess it is a cheap loan for 5 months. I had an intro rate of 6.9% for a limited period with current CC so I used this to borrow money. I still have 2500 to pay and the intro rate is finishing at end of Sept. I am going to transfer it and stick my card in the freezer for a bit

 

[GeneralZod]

The UB card has a 9 month interest free period. So you could have the repayments on deposit for 8 months. The interest free period is also for purchases. If you put all your spending on the UB card for those 9 months you could earn interest on the repayments for that. I'm assuming UB give you a credit limit bigger than the transfer amount.

 

[ClubMan]

Hi,
I have a balance on my CC that I want to transfer to a 0% CC like Ulster bank. I want to keep my existing CC for purchases. My question is will I have to pay stamp duty on both cards? It will take me 5 months to clear the balance of €2500. Would I be better off to stick with existing CC provider?

www.revenue.ie

Stamp Duty on Financial Cards

[broken link removed]

 

[brokeagain]

The UB card has a 9 month interest free period. So you could have the repayments on deposit for 8 months. The interest free period is also for purchases. If you put all your spending on the UB card for those 9 months you could earn interest on the repayments for that. I'm assuming UB give you a credit limit bigger than the transfer amount.

That is nearly the plan, however I don't plan to use my CC for the next while. I used it while on holidays but won't need it now for anything immediate...I hope! UB Zinc card has a minimum limit of 5000.