The cheapest way to use a credit card is to always pay it off in full every month – and then you pay no interest at all. But – if you don’t manage to pay off the full balance – it’s nice to know which card has the lowest rate of interest before you apply.
These are the 5 credit cards with the lowest interest rates in Ireland .
Figures checked March 14th 2019 (on purchases)
- 13.8% AIB Click (Visa)
- 17% AIB Platinum (Visa)
- 18.25% KBC (Mastercard)
- 19.2% Ulster Bank Gold (Mastercard)
- 19.6% BOI Platinum Advantage (Mastercard)
- 22.1% BOI Classic (Mastercard)
- 22.53% PTSB Ice (Visa)
- 22.9% An Post (Mastercard)
- 22.9% Avantcard
See here for the current Zero Percent Interest Offers on Credit Cards
Some credit cards come with extras – such as free worldwide Travel Insurance with the BOI Platinum card (but you need an income of at least €40k to get one).
The Bank of Ireland Student card also has free travel insurance. Both of these require that you paid for at least 50% of the “fare” with the card.
The travel insurance on both of these is quite comprehensive and covers unlimited number of trips of up to 120 days each. It is as good as many of the policies that could cost you a couple of hundred Euro a year. As with any travel insurance – if you have pre existing medical conditions – you will not get medical cover for them while travelling.
Minimum Payment Warning : Paying just the minimum repayment amount each month on a credit card is a costly and lengthy way of paying off a debt.
For example – on a credit card with a balance of €2000 and an interest rate of of 19.2% with a minimum payment of 3% of the balance (or €25) .
Paying just the minimum off each month would mean it would take 8 years to pay off the balance and you would end up paying a total of €3417.
If instead you paid a fixed amount of €60 a month – it would only take 3 years and 11 months to pay off. The total repaid would be €2772. (€645 less).
Tip – Try and ensure you have at least two different types of payment card , ideally from two different banks – just in case there are any IT problems or outages with one of them.
In May 2018 – there were issues with Visa payments across Europe and we have seen major problems with Ulster Bank in the past.
See our article about Visa or Mastercard in Ireland to see which provider issues the different types of cards.