Holiday new credit card?

sistafromanothermista
sistafromanothermista Posts: 2,230 Forumite
First Post First Anniversary Combo Breaker Debt-free and Proud!
in Credit cards
Hi all, hopefully I can get some advice to make sure I'm doing the right thing.
We are now debt free after a long struggle and are all travelling to Florida next year for a hard saved for and well deserved family holiday.
The question is this, rather than taking all our spending money in cash or using a pre pay card (have heard some horror stories about these) we are looking to take out a credit card for most if not all of our spending.
It looks like the Halifax clarity that seems to be the best as, if I'm reading it correctly, we could take cash out whilst over there and pay no fees.
We would be paying off in full on our return with money saved up.

Is this the best idea? All recommendations considered!
DEBT FREE AND PROUD:D
'Better to remain silent and be thought a fool than to speak out and remove all doubt'

Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
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    Yes, Clarity is almost unbeatable.
    Most likely you'll be able to pay for most things by the card and won't need much cash. If you do withdraw cash, you pay only the interest that isn't that big - and can be avoided by making online payments to the CC soon after ATM withdrawals.
  • sistafromanothermista
    sistafromanothermista Posts: 2,230 Forumite
    First Post First Anniversary Combo Breaker Debt-free and Proud!
    grumbler wrote: »
    Yes, Clarity is almost unbeatable.
    Most likely you'll be able to pay for most things by the card and won't need much cash. If you do withdraw cash, you pay only the interest that isn't that big - and can be avoided by making online payments to the CC soon after ATM withdrawals.

    Would I still be ok to pay for cash withdrawals after my statement? So on our return?
    DEBT FREE AND PROUD:D
    'Better to remain silent and be thought a fool than to speak out and remove all doubt'
  • dzug1
    dzug1 Posts: 13,535 Forumite
    First Post Combo Breaker
    sistafromanothermista wrote: »
    Would I still be ok to pay for cash withdrawals after my statement? So on our return?




    Not the slightest problem The hoops people go through to avoid paying a few pence interest seem bizarre
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    dzug1 wrote: »
    The hoops people go through to avoid paying a few pence interest seem bizarre
    Indeed, when you consider £100 costs 3p per day in interest at 12.9% APR. Even if you're on the higher 21.9% APR it's only just over 5p per day.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 30 October 2014 at 11:26PM
    YorkshireBoy wrote: »
    Even if you're on the higher 21.9% APR it's only just over 5p per day.
    Well, 5p per day can turn into up to £3 if you pay the balance on the due date, that can negate the advantages of Clarity.
    For big amounts of cash even prepaid cards can be better, not to mention some debit cards (if you wait until the due date to pay the balance off).
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    grumbler wrote: »
    Well, 5p per day can turn into up to £3 if you pay the balance on the due date, that can negate the advantages of Clarity.
    Of course, but OP was talking about clearing the balance on their return to the UK...presumably after only a 2 week holiday?


    So £500 worth of dollars withdrawn would mean interest of around £1.75 if withdrawn linearly over the fortnight (with the rest of the spend made as purchases) at 21.9% APR...and only £1.05 if they get the representative 12.9% APR.
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