Which Credit And Debit Cards Are Best For Worldwide Travel

belly1

Hi, i'm rick, new to the forum, would much appreciate some help.

I am off round the world for 6 months starting from november 1st. USA, Fiji, New Zealand, Oz, and Thailand.

I was originally going to get a Nationwide Flexaccount but November 1st is also when they scrap their travel-friendly features so I am looking at alternatives.

Which debit card would be the cheapest option, and also which credit card would be best. I've seen Tesco's credit card with 13 months 0% on purchases. I'm nearly 23 but have never had a credit card so it's all new to me. Any advice would be great.

Are them pre-paid cash cards a good alternative? I have also seen a few of them advertised. I have read the guide on here for using cards abroad but it's not that useful. cheers for any help.

exel1966

All info you need is HERE

Originally Posted by belly1
I have read the guide on here for using cards abroad but it's not that useful

I'm sure MSE would be pleased to know the time and effort put into the guide isn't useful.

I think it provides most of the info you need.

chattychappy

Whatever you do, DO NOT USE TESCO overseas.

Most cards load foreign stuff by 2.75%. A few don't (Zero, Halifax Clarity, Post Office).

But Tesco appears to be the worst because it loads an exchange rate which in itself is loaded. Another poster reported 5 to 6% in total (think I confirmed it myself, but cant remember now).

belly1

that link is what I looked at before as I mentioned above. Just wanted some opinions/experiences aswell.
thanks for the heads up about the tesco card.
ideally i need a card that is going to give me at least 12months 0% on purchases. is this possible on any of those 'specialist' travel cards?

chattychappy

Post Office do 3 months. I think Zero does as well (you might have to be a Santander customer).

Bear in mind, as you say you haven't had a credit card before, you might have trouble getting a "mainstream" card - and even if you do, you might not get much of a limit.

Remember also you still have to pay the minimum repayments even when it's 0%.

danothy

As far as I can tell it's the Post Office card, as you can buy PO currency with it with no charge (cash sorted, no advance fee) and it has no overseas charge, additionally not many people I know bank with the PO (anyone know who they're associated with?) so setting off is potentially less of a problem should that situation arise.

Following that the other one I found is the Halifax Clarity CC which is basically the same deal without the buying currency charge free, any 0% period and any set off issues (dependant on your banking situation).

I may have overlooked something, so do check my facts and listen to anyone else who has any input as this is only based on my efforts looking for overseas spending options.

belly1

iv worked out that over the 6 months i will be spending about £450 per month (£2700 total) is that a realistic credit limit for me. i presume i have an ok credit rating, had finance, a loan, contracts etc. and im in decent full time work. i think the 12/13 month 0% purchase cards are what i really need so i can pay off the majority of it on my return. how much would it cost me realistically on an average credit card. the dreaded tesco for example or similar? need to weigh things up

PARIS_5000

I used my HSBC debit card in Paris and I was not charged a fee however when used my Lloyds TSB card I was charged a fee but it was ony one pound.

Bob_the_Saver

Take a back-up or 3

iblametheparents

One of the good credit cards for purchases and a FairFX Anywhere card for ATM withdrawals.

chattychappy

belly1 wrote: »

iv worked out that over the 6 months i will be spending about £450 per month (£2700 total) is that a realistic credit limit for me. i presume i have an ok credit rating, had finance, a loan, contracts etc. and im in decent full time work. i think the 12/13 month 0% purchase cards are what i really need so i can pay off the majority of it on my return. how much would it cost me realistically on an average credit card. the dreaded tesco for example or similar? need to weigh things up

Well, if you need a few months interest free and Tesco is the only one, then paying 5 or 6% more per transaction for that one will be better than paying nothing on another card where you could be paying, say, 2% in interest.

So really that's your answer - during the 13 months you will pay an overhead of roughly 5% per non-UK transaction. No interest during that time. In Thailand (possibly Fiji too), cards might not always be accepted or only accepted on payment of a further commission.

If you get a card that charges 1% a month interest (not bad) and they load by 2.75% (typical) and spent US$100 on day 1, then when you come back you would have paid an extra US$8 (loading and interest). During that 6 months you would have had to have paid some of it back - if the min repayment was 2.25% then around US$16.

BUT:
1) your calculations suggest you think you can run up £450 a month for 6 months without paying anything back until you return. Whatever the promo offer, you will have to pay something back each month. This could be anything up to 5% of the balance, though 2 or 3% is more typical. This is nothing to do with interest. The summary box will tell you the minimum repayment.

2) cards go wrong, especially overseas. For 6 months (and I often spend that time overseas) ideally you need to take 2 or 3 at least.

Make sure you get them in plenty of time and familiarise yourself with online access. You can't simply go away, forget about them and sort it out when you get back. For a start, a typical T+C is that you check your statements. If there is a fraud and you don't notice because you don't check your statements, it could get very nasty.

If you are in London, consider Metrobank (opposite Hoborn tube) for a debit card. (See the banking forum..)