When you apply for a credit card, there are certain procedures that every lender will follow, regardless of which country you are in.
Usually, once you have submitted a credit card application, the credit card company will assess your monthly cash flow situation, carry out a credit search, and make an informed decision as to whether or not you qualify as a ‘good’ or ‘bad’ credit risk.
The process of applying for a credit card in the UK and Ireland is essentially the same. You are required to provide information such as your income and expenses, employment history and details of your living situation, so they can assess your level of responsibility and your ability to repay the credit card debt.
However, in Ireland, there is one additional factor you need to take into consideration. In Ireland, an annual government stamp duty applies on all credit cards accounts, which is currently set at 30 per year. This stamp duty does not apply when you obtain a credit card in England, Wales or in fact, any other country in the world.
The fee is only payable once per year, per account, regardless of how many cards are attached to the account.
If you transfer your credit card account to a new bank, you won’t be required to pay the stamp duty again – but in order to avoid paying stamp duty again you must close the old credit card account.
Your original credit card deal will provide you with a letter of closure, stating that you have paid your stamp duty for the year, which you are required to pass on to your new card issuer. Stamp duty is payable on April 1 each year, for the preceding year.