A Look at Today’s Credit Cards

Are you finding yourself a little short of cash? Some individuals state that using credit cards when you are a little short of funds is an okay thing to do; however it can lead to serious issues. Supplementing one’s income with credit card makes the situation of the lack of funds worse. Even though credit cards are expensive and many consumers are aware of the charges they are still using the credit cards and going for more than just one.

In January to April the credit card applications jumped by 31,000. For four months that is a very high number. It also suggests that more consumers are in need of the plastic funding. The Central Bank released these figures just recently to show the increasing popularity of credit cards despite the current economic situation, or perhaps because of it.

A recent survey by the Financial Regulator also found that the interest rates offered by credit card issuers’ are rather wide spread. There are two interest rates being charged on one card, then you add in the other providers’ ranges and it is rather surprising. The two credit card rates are purchases and cash withdrawals. The cash withdrawals are going to be much more than the purchase rates.

The Financial Regulator found the interest rate on purchases is between 8.5 percent and 20 percent for Ireland. The cash withdrawal interest rates are 9.4 percent to 22.9 percent. Experts are stating again the importance of shopping around for a credit card. By shopping around a consumer could potentially save a great deal of money with the wide range of annual percentage rates charged.

Other lenders of course have the attractive benefits like special balance transfer rates, purchase rates, money back, trip points, and more. It can make the cards look more helpful, but used wrong and they can quickly turn against the consumer. The interest rates are also flexible which means the consumer can see an increase in their rate from one month to the next with little warning.

Banks are tightening up their offers as well. On June 1st Halifax changed their rate to 10.9 percent for excellent credit ratings. That is up by 1.4 percent. Cash withdrawals from Halifax are up by 3.3 percent.

AIB has a Click Visa Card that seems to be one of the best deals on the table at the moment. They have 8.5 percent for the purchase rate. However the cash withdrawal is 22.9 percent. That is a huge difference between the two rates, making the card less than attractive for cash withdrawals. Using the card for cash withdrawals should be avoided any way.

Credit card consumers that are new to the Bank of Ireland will see a 2 in 1 account or platinum advantage credit card. The annual percentage rate is 15.9 and 14.9 percent respectively on purchases. A higher rate for cash withdrawals is also seen with 17.4 and 16.5 percent.

Ulster Bank also has credit card offers ranging in APR to make their cards more attractive.