Your Credit Card Questions Answered

Thinking about applying for a credit card? One of the most common questions people ask is simply: How do credit cards work and are they right for me?

The short answer is that a credit card gives you access to an approved amount of credit that you can use for purchases and repay over time. Credit cards can be useful for everyday spending, online shopping, travel and managing larger expenses, provided they are used responsibly.

Within this credit card frequently asked questions (FAQs) blog, we'll answer some of the most common questions Irish consumers ask before applying, including how credit limits work, whether you can withdraw cash from a credit card, how interest works and more.

Credit cards explained simply

What is a credit card?

A credit card is a payment card that allows you to borrow money from your card provider up to an agreed credit limit. You can use it to make purchases online and in shops for many everyday expenses. Each month, you'll receive a statement showing what you've spent and the amount you need to repay.

Who can get a credit card?

Eligibility requirements vary between providers. In general, you usually need to:

• Meet minimum age requirements
• Have a regular source of income
• Pass necessary assessments
• Meet the provider's lending criteria

If you're applying for the first time, our guide to getting your first credit card may be of help.

How do credit cards work?

When you use a credit card, your provider pays the retailer on your behalf. You then repay the amount you've borrowed according to your credit card agreement.

Most credit cards have a spending limit, known as a credit limit, which represents the maximum amount you can borrow at any one time. For a more detailed explanation, read our blog on how credit cards work.

How do credit card limits work?

Your credit limit is the maximum amount you can spend using your credit card. For example, if your credit limit is €3,000 and you've already spent €1,000, you'll have €2,000 of available credit remaining. Credit limits are generally based on factors such as income, financial commitments and creditworthiness. Responsible use of your card can help you manage your available credit effectively.

What are the benefits of a credit card?

A credit card can make daily purchasing simpler. Many people use credit cards for:

• Online shopping
• Travel
• Larger planned purchases
• Managing everyday spending
• Contactless payments

To learn more, see our credit card benefits guide.

Are credit cards safer than debit cards?

Both credit cards and debit cards use security measures. The protections available may vary depending on the card provider and circumstances. Some people prefer using a credit card for online purchases because spending is made using an approved credit limit rather than money directly from their current account. However, it is important to monitor transactions regularly and keep card details secure, regardless of whether you use a credit card or a debit card.

Using a credit card day-to-day

What does APR mean on a credit card?

APR stands for Annual Percentage Rate. It is a figure designed to help compare the overall cost of borrowing between credit card products. APR takes into account interest and certain charges associated with borrowing.

When comparing credit cards, APR can provide a useful way to assess your choices.

Can you withdraw cash from a credit card?

Yes, in many cases you can withdraw cash from a credit card using an ATM. This is often called a cash advance. However, it's important to understand that cash withdrawals may be treated differently from everyday purchases. Depending on your card's terms and conditions, daily interest charges and fees may apply.

With an Avant Money Credit Card, you can turn up to 95% of the available credit limit on your credit card into cash in your bank account. For more information, see our guide to sending money from your credit card to your bank account.

What can you buy with a credit card?

You can generally use a credit card for most everyday purchases, including:

• Supermarket shopping
• Fuel
• Online purchases
• Travel
• Restaurant payments
• Entertainment
• Subscription services

Certain credit cards will be better for specific purchases. For example, the Everyday+ Credit Card offers 5% cashback on groceries and fuel*, which may be suitable for customers who regularly spend on these items.

Can I pay bills with a credit card?

In many cases, yes. Some utility providers, subscription services and other organisations allow customers to pay bills using a credit card. However, this can vary by provider, so it's always worth checking directly with the company.

If you're using an Avant Money Credit Card, you can manage your spending and payments through the Avant Money App.

Can you tap with a credit card?

Yes. Most modern credit cards support contactless payments. You can simply tap your card where contactless payments are accepted. Many cards can also be added to digital wallets for easy access. An Avant Money Credit Card is no different, offering customers the ability to easily use their card for contactless payments. Learn more in our guide to digital wallets.

Managing your credit card over time

Can I increase my credit card limit?

Many credit card providers allow customers to request a credit limit increase. Approval will usually depend on an affordability assessment, account history and lending criteria. If your circumstances change and you need less available credit, many providers can also help you reduce your credit limit.

Do credit cards affect mortgage applications?

Credit cards can form part of the overall picture considered during a mortgage application. Lenders may review existing financial commitments and look at how credit has been managed. Using credit responsibly and making repayments on time can help show good financial management habits.

What happens if you miss a credit card payment?

Missing a payment can have consequences depending on the terms of your agreement. If you think you may miss a payment, it's often best to contact your provider as early as possible to discuss potential next steps and support.

How much is credit card interest per month?

The amount of interest charged depends on your specific credit card, the balance you carry and how your provider calculates interest. Because rates and charging methods vary between products, it's important to review your card's terms and conditions for accurate information about potential borrowing costs.

If you want to get an idea of the rates being charged on credit cards, you can check out the Avant Money Credit Cards key information.

What happens if you overpay on a credit card?

Overpaying means you've paid more than the outstanding balance owed on your account. If this happens, the credit may remain on the account, or your provider may offer options for handling the excess amount. Policies vary between providers, so it's worth contacting your card issuer if you're unsure.

Still interested in a credit card? Here's how to get started

If you're considering a credit card, Avant Money offers two credit card options: the Everyday+ Credit Card which offers 5% cashback on groceries and fuel* and the One Card which gives you 0% interest on purchases for 3 months+ as well as €150 cashback credited to your account++. Before applying, take time to compare available features and review the product details carefully.

You can compare credit cards to explore which option may be best suited to your needs. You may also find our guide to credit card myths and facts useful if you're researching credit cards for the first time.

One Card

Variable interest rate 16.8%. Typical APR 22.9% (Annual Percentage Rate) includes government stamp duty of €30.

Representative example: assuming credit limit of €1,500 repaid in 12 equal monthly instalments, total amount repayable is €1,666.50. Total cost of credit is €166.50.

+For any offers related to purchases, the promotional period commences from the date your account is opened. You’ll need to pay your minimum monthly repayment on time each month and stay within your credit limit to keep your promotional rate. When the promotional offer ends any outstanding amount will be charged interest at your standard variable rate of 16.8%.

++Offer valid from 1st February 2026. €150 cashback on One Card subject to a Balance Transfer of at least €1,000 within 90 days of account opening, cashback payable within six months of account opening. Certain transactions are excluded, see details at Credit Cards FAQs.

Everyday+

Variable interest rate 20.8%. Typical APR 22.9% (Annual Percentage Rate).

Representative example: Assuming a credit limit of €1,500 drawn down in one transaction and repaid over 12 months in equal monthly instalments, total amount payable is €1669.00. The cost of credit is €169.00.

*Max. cashback €25 per month. 5% cashback valid for first 12 months; 1% thereafter. Cashback applied at selected retailers. For fuel, pay-at-the-pump and home heating oil excluded. Other exclusions apply, see Everyday+ FAQs. Source of average household car fuel usage donedeal.ie. Average fuel cost based on €2 per litre.

Lending criteria, terms and conditions apply. Avant Money Credit Cards are only available to customers over the age of 18 and resident of Republic of Ireland. Rates correct as of 1st July 2026 and are subject to change.

Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.