Travel Credit Card Confused & Insurance

joanne1971

Hi

Please help we want to get credit cards for our holiday to South Africa in March. As carrying lots of cash there might not be a good idea.

But I am totally confused. It seems the Santander one is the best but what is all this about interest of about 27% on Cash withdrawlas even if paid off in full?!

We want a card that we can buy things on and take cash out.

At the moment we have a Capital One Card - is it worth changing cards?

Or are we best just using a credit card for purchases and usuing are debit cards for cash withdrawls (Iam with barclays and hubby is with Halifax)? I know Nationwide is the best but we dont feel we will be spending enough on holiday to warrant all the hassle of changing accounts.

Any advice really appreciated.

Also we have just paid the deposit on our holiday using our existing Capital One Card. There is a 2% levy by the travel company paying by credit card. However, we wanted to pay on card to give us the card insurance if there is any problems. If we pay the balance of the holiday balance by bank transfer - will the whole cost of the holiday be covered by the credit card insurance? - hope that makes sense!

Thanks
jo

joanne1971

No one has replied - Is there a better forum I should post this on?

td_007

It is never a good idea to withdraw cash on CC so neither Santander or Cap 1 are good options for that. Even though it might be bit of hassle, if you can get the Nationwide Flex a/c you will surely save quite a bit - ofcourse it all depends on how much you withdraw.

Re travel booking - you will be covered for the money you spent on your CC. You might want to think of holiday insurance if you think there might be some problems.

Reubenscane

are you mental, never use a credit card to take cash out! You will be charged as soon as you take cash out, why not use the credit card for purchases and balance tranfers to your debit account and get cash out that way? Your asking for trouble withdrawing cash with a credit card!

CLAPTON

lets say you withdraw cash of 500 on a credit card charging 27% APR but no fees or foreign exchange charge

then if you pay in full after say 4 weeks then it will cost you
500 x 27% x 4/52 = £10.38

of course if you paid it back before 4 weeks (in full) then the interest would be less

lets say you with draw cash on your debit card with barclays

then they charge 2.75% foreign currency charge plus 2% for cash

so on 500 you are charged 500 x (2.75%+2%) = £23.75


best to do the maths before panicking and try to work out the best way depending upon how much you think you will spend and withdraw and how often .

joanne1971

Thanks - I never use credit cards so I did not realise about using them for cash. That makes sense now.

Would you think it was sensible then to get a Santander Card for purchases and get one of those Cards you can load with money for withdrawing cash when away (can't remember what they are called - made be prepaid cards).

Jo

jillie1974

if you want a card you can load with SA Rand Thomas Cook do an actual south african one. most is US$ or euro

Budner

Post office card is best for overseas use