The gimmicks/Free travel accident insurance: Card providers will pay out around €20,000-€300,000 if you have an accident abroad if you have paid for the holiday in full using the card. But this cover is not a substitute for travel insurance and should not be treated as such: it won't cover the cost of medical expenses if you fall ill.
Payment protection:This is an optional extra, under which card repayments are partly and temporarily met in the event of accident, illness or redundancy. But it costs around 50c-77c per €100 on your outstanding balance.
That doesn't sound like much, but on a balance of €3,000, you could be paying more than €23 per month for insurance you will probably never need.
Credit card cheque book: MBNA cards include a credit card cheque book, which it says can be used to pay bills or other large transactions or "write yourself an instant loan".
However, like cash advances, these cheques will be subject to a fee of 1.5 per cent of the value of the transaction, with a minimum charge of €1.90 and a maximum of €31.74.
The good deals/Balance transfer special rates:If you have built up card debts, it's a good idea to switch to a new card with a 0 per cent APR balance transfer rate. But in most cases these offers should technically read "0 per cent for up to a maximum six months" not simply "0 per cent for six months". If you continue making new purchases the interest-free period could expire sooner than you think.
Low introductory rate on new purchases: If you don't have the discipline to repay your balance in full each month, choose a card with a 0 per cent rate on new purchases. These are available from Bank of Ireland, NIB, Tesco and Ulster Bank, with Ulster Bank offering the longest interest-free period (nine months).
Cash rewards:Ulster Bank promises to refund customers the €40 Government stamp duty as long as they spend €5,000 on their card during 2004.
As the tax is the main cost of a credit card for many cardholders, the offer seems like a good one, with the spending threshold not too onerous for many cardholders.
