Moving from UK to Ireland - what happens to UK credit cards?

mediaeval

I am moving back to Ireland from the U.K. Can I take my credit cards with me? Or do I have to cancel them when I leave? I'd like to hold onto them as:

(a) One of them has an interest rate of 7.9%, although the balance is zero. Pretty sure I won't get that interest rate on an Irish credit card.

(b) One of them has zero fees for non-sterling transactions. Pretty sure I won't get that on an Irish credit card, either. 

(c) I have an outstanding debt of £3K on the third credit card at 0% interest. I presume they won't want me to cancel it...

Thanks

M

Legally speaking, if you’re moving outside the UK permanently, you’re usually (under the T&Cs of the cards themselves) not entitled to continue to hold onto them. The contract would specify that they’re for residents of whatever country the cards are issued in only.

The reason for that is the lender wouldn’t have easy recourse to recover unpaid debts and can’t do credit checks etc etc.

mediaeval

That's true, GlottalStop. But when I moved from Ireland to the UK 10 years ago or so, MBNA Ireland (now Avant Card) allowed me to change address to the U.K., and sent all of my new cards there. They had the same in their T&Cs for their card, technically they should have cancelled it. Or such was my understanding at the time...

Explosive_Cornflake

I've had a HSBC credit card with I think a bonkers credit limit since I left England back in 2016.

I did last year or the year before change my address to an Irish one.

HSBC didn't care, but I did get charged for the Irish Stamp duty this year on it.

Jim2007

Since the BREXIT agreement was signed UK financial institutions are not authorised to provides services in the EU unless they obtain the appropriate licences. And most have decided not to obtain such licences. Consequently they are in the process of closing down such accounts.

If it was a case that you had money on deposit with them, then it would be advisable to make other arrangements. However since the shoe is on other foot so to speak, you don't really have anything to loose if you want to hang on to them until they react.... just don't count on them being around for the long term.

coylemj

(b) One of them has zero fees for non-sterling transactions. Pretty sure I won't get that on an Irish credit card, either

When you move to Ireland, won't most of your 'non-sterling' transaction be in Euros? Which means that facility won't really be of any value.

Do you really want the hassle of managing three credit cards which are (potentially) denominated in a currency which is not the same as your income or savings?

You're going to need a sterling bank account to pay the bills on those cards so I can't see how you will manage to avoid all FX charges.

Peregrinus

For the reason that Jim2007 points out, it's likely that the UK-based card issuers will cancel the cards once they become aware that you are resident in Ireland. If they don't, however, there is nothing in Irish law to prevent you from retaining the cards, and continuing to use them.

You might want to think carefully, though, about whether it is a good idea. The "zero-fees for non-sterling transactions" card may not charge a fee, but it still controls the exchange rate at which it bills non-sterling transactions to your account, and you can take it for granted that they will have built in a margin for themselves there. Plus, unless you have a source of sterling income, you're going to have to convert euros every month to settle your credit card bill. Basically, if you are earning in euros and (mostly) spending in euros, having a credit card denominated in a currency that isn't euros just adds costs and a modest degree of FX risk.

If might be worth it if you want or need to use the credit cards to borrow - i.e. if you don't clear your bill every month - and they enable you to borrow more cheaply than you could in Ireland. But use them strictly for that purpose; get at least one euro-denominated card for expenditure that you intend to clear each month. And, again, be aware that, if your income is in euros and you borrow in sterling, you expose yourself to foreign exchange risks; movements in the EUR:GBP exchange rate could easily more than offset any interest rate advantage you enjoy on the UK cards.