Using Zero card abroad for cash/purchases

Chinkle

Just got the Zero card for my upcoming holiday. I don't normally make cash withdrawals on credit cards, but as this is the cheapest way to get local currency, will be doing so for first time.

Question though, I know I will be charged interest on the cash advances from the day I withdraw, but will I still get interest-free period on purchases or does it then all get lumped together and mean I'm charged interest on the total outstanding balance? If not, it sounds like I might be better off using another card for these.

Lugh_Chronain

First of all set up a Direct Debit to repay in full every month, or the interest charges dwarf the cheap currency gains.

The only negative is its high 27.9% cash withdrawal interest rate, which you pay even if you clear the card in full. Yet as that’s roughly £2 for a month per £100, it's still cheaper than paying interest PLUS the cash withdrawal fees on other cards.

If you've enough time before your upcoming holiday then consider applying for Nationwide's Flexaccount Visa Debit card. For European spending, this beats every card out there.

And as Martin points out:

It doesn't charge a load fee in Europe, but does charge 0.84% worldwide. There's no charge for using ATMs (apart from the load fee mentioned above) and withdrawing cash is interest free (unless you’re overdrawn).

Nationwide wants you use this as your main current account, yet you can sneakily avoid this by setting up a free savings account at the same time as opening the Flexaccount; its e-savings plus account can be opened with just £1. Then you can just pre–load the Flexaccount for spending before travelling abroad.

Then again, there is one other reason to stick with a credit card rather than debit card overseas, thanks to Section 75 consumer protection. Read the full article on Section 75 protection for more information.

I used the Nationwide's Flexaccount Visa Debit card when I was over in Ireland in April this year and wasn't charge any fees at all. I used this for spends and ATM withdrawals.

http://www.nationwide.co.uk/current_account/default.htm

Nationwide Building Society - Foreign Transactions

YorkshireBoy

As long as you clear the entire balance (purchases, cash, and cash interest) before the payment due date you'll continue to enjoy your interest free period on purchases.

However, because your cash withdrawals are accruing interest between the transaction date and the date you repay in full you're going to have to overpay (to cover the period between statement date and the date your payment clears onto your account). I suggest doubling the cash interest figure shown on your statement. This will create a small positive balance and will therefore stop the interest.

As above though, it's always best to use a debit card (Nationwide's is best) for cash withdrawals.

And finally, don't rely on just one card when you're abroad. Always have a back up...or two.


EDIT: If you've only just got the card you might still be in the 3 months 0% on purchases introductory period anyway.

Lugh_Chronain

Did I misunderstand your query? I think YorkshireBoy has made this clearer though and has advised well, and a good idea to suggest a back up card.

You could try getting the Nationwide's Flexaccount as well as the Abbey Zero and maybe use the Flexaccount card as your main card, unless you intend making a purchase over £100

Chinkle

Actually, I don't think my query has been answered.

I am aware that I will pay interest on cash withdrawals and intend to pay these off asap. I also have other cc's so don't intend to apply for yet another card.

However, if I make purchases on the Zero card will they have the normal interest free period or will I be charged interest on a daily basis from date of purchase? Just wondering what happens if I mix the two.

NickX

Chinkle wrote: »

Actually, I don't think my query has been answered.

YorkshireBoy has answered your query in the first sentence of his reply.

As long as you clear the entire balance (purchases, cash, and cash interest) before the payment due date you'll continue to enjoy your interest free period on purchases.

cashbackproblems

i think you might be confusing yourself, as far as im aware the only 2 interest free cards to use abroad at the moment are the Abbey Zero and PO credit cards and they provide interest free purchases for 3 months. So as long as you pay the minimum monthly repayments (usually £5-20) UNTIL the 3 months ends and then pay it off in full, you wont pay a penny in interest. Dont make withdrawals as you can take the cash before you go and avoid the high costs.

If you going for over 1 month and wont be able to pay the minimum, either get someone to do it for you, or set up a dd. Also open the account as late as possible before you go, that way the interest free period lasts longer and u have longer to repay i.e. 3 months.

YorkshireBoy

NickX wrote: »

YorkshireBoy has answered your query in the first sentence of his reply.

Thanks Nick. Maybe I should have stopped there, rather than providing the detail behind that sentence and giving additional supplementary information?

Oh well! :rolleyes:

Chinkle

I was refering to the normal interest free period between the transaction date and the statement/payment date on purchases.

YorkshireBoy

Chinkle wrote:

I was refering to the normal interest free period between the transaction date and the statement/payment date on purchases.

So was I in my earlier reply.