Cheap Travel Money Discussion Area

KTF

21.9% is 1.825% a month interest so if you took out £100 on the first of the month and paid it off at the end you would pay £1.83 in interest for the cash advance.

If you took out £100 on day 1 put did an online transfer to zero the balance on the same day or the say after then the interest would be a lot less (pence if that).

Of course if you preloaded the card before you left then you pay no interest at all. This is against the t&c but has yet to be enforced

Purchases would be interest free (assuming paid in full each month) as per any other card.

zagfles

KTF wrote: »

21.9% is 1.825% a month interest so if you took out £100 on the first of the month and paid it off at the end you would pay £1.83 in interest for the cash advance.

If you took out £100 on day 1 put did an online transfer to zero the balance on the same day or the say after then the interest would be a lot less (pence if that).

Of course if you preloaded the card before you left then you pay no interest at all. This is against the t&c but has yet to be enforced

Purchases would be interest free (assuming paid in full each month) as per any other card.

21.9% APR is 1.664% per month (APR accounts for compounding), which would be about 0.055% per day. So if you withdraw £100 it will cost about 5.5p per day till you pay it off.

murphydavid

KTF wrote: »

The charge is the APR you have been given divided by 12 divided by the number of days you have a cash advance on the card.

Um?

If the APR was 12% and you had £100 for a year it should come to £12
Using yours above
12/12=1
1/365= .00274
.00274*£100=£0.27p not correct

Its roughly APR divided by 365 times the number of days times the amount on credit divided by 100

ie for the above 12/365=0.03288
.03288*365=12
12*£100/100 = £12

John_Pierpoint

It is a daily rate of interest compounding daily or monthly, I think you will find ???
Let us look at daily compounding:
ie
0.00032876712 of 100 = 0 .032876712
1.00032876712 of 100.032876712 = 100.065764232
now the calculation for day 3 of the month is:
1.00032876712 of 100.065764232
carry on like that and by the end of the first month the daily charge is up from
3.29 pence per day to 3.32 pence per day.
By the end of month 12 your calculation will be significantly over shooting.
Such is the joy of pay day loans and credit cards, and that is before the charges for not paying on schedule.
The quicker it gets paid off the less it costs per day.

It would be more realistic to rerun the numbers using an interest rate of 24% (say) that 21.9% is a teaser rate - not everyone gets that.

http://www.which.co.uk/money/credit-cards-and-loans/guides/how-credit-card-interest-is-calculated/

tia86

Oh gosh it has got more complicated since last night!! I hate maths!! Was looking like it wouldn't be much until the £12 seemed to appear?!?!

I wont be able to pay off until I return home so is it likely to just be a few pence per day, like initially suggested, or more like the £12 figure?!

Thanks all

murphydavid

tia86 wrote: »

Oh gosh it has got more complicated since last night!! I hate maths!! Was looking like it wouldn't be much until the £12 seemed to appear?!?!

I wont be able to pay off until I return home so is it likely to just be a few pence per day, like initially suggested, or more like the £12 figure?!

Thanks all

Sorry I just used £12 in a random example thinking to aid anyone trying to calculate an amount - £12 was for a whole year. If you are just getting a small amount of holiday cash it will be a few pence a day.

girl_withno_name

I hold a passport in my full name and a Halifax current account in my middle/last name (I am known by my middle name). I'm looking to apply for a Halifax Clarity card through the current account - is the different in name likely to cause any problems while spending abroad?

I'm assuming not (because they surely won't see my passport?) - but best to check I think!

tasty_snacks

Very pleased with the conversion rate to TRY I received in Istanbul over the weekend with the Halifax Clarity card.

Came out as 2.744.

Best on offer in London (using MSE tool) was 2.63 before I travelled. Best rate available in money changers in Istanbul was 2.745, and the xe.com rate on Saturday was 2.742.

lorcan1

I'll be travelling for 3 months through Japan, China, USA and Europe.
I have only a 50% chance of getting the best rate for the Halifax clarity (according to the MSE tool). I'll be often using cash so no ATM charge is a must.

Would an international pre-paid card be best value?

If I could get the CC at the best rate, would this be significantly better? as I will often not have the opportunity to immediately transfer funds to the CC.

lorcan1

To clarify the above: I will be able to pay off in full each month, but not necessarily immediately in the following week for example.