Your credit history, switching credit cards and saving

January 16, 2019

In the first episode of the CCPC sponsored TV show How to be Good with Money we saw Kerri and Brian tackle their debt, look at switching credit cards, get some unexpected news about their credit history, all while trying to save for a trip to America for a family wedding.

When it comes to tackling debt there are a number of different approaches you can take. You can do like the guys did on the show and try the snowballing method, this involves paying off a small loan first to get the ball rolling. Or you can focus on paying down the debt with the highest interest rate first as this is the one that could be costing you the most. If you have savings, you could consider using those to clear off your debts.

If you have an outstanding balance on your credit card you could look at switching to one with a lower rate or that has a 0% rate on balance transfers and try to clear it. You can use our credit card Money Tool to see what one might best suit your needs. If switching isn’t an option for you at the moment you can use our clearing your credit card calculator to see how long it will take to pay your current one off. You should try and pay back more than the minimum payment every month if you can afford to. This will make a big difference to how long it takes you to pay off your credit card and how much interest you’ll pay back.

Switching a credit card is the same as making a new application so your credit history will be checked. Your credit history is like your financial reputation and it is important you look after it as it’s checked whenever you apply for a loan or credit card. There are two ways a lender can check your credit history, the Irish Credit Bureau and the Central Credit Register.

Your credit history records all repayments made or missed on loans, overdrafts and credit cards up to five years after the loan is closed. Even accidentally missed or late repayments can have a negative impact when you are making an application. Before applying, it can be a good idea to check your credit history to make sure everything is in order.

If saving is your aim, you can compare regular savings accounts to see which one has the best interest rate and find out about the different ways to save. Kerri and Brian also looked at ways they could start managing their money a little better, we have lots of helpful information on ways to tidy up your spending with our money saving tips.


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