Best way to go with overseas money

galvatron20

Hi, I'm planning on doing some backpacking in the states.

I have a nationwide flex card but know that the free withdrawals are going to stop after 1st November.

I won't be spending much on card, maybe some car hire.

I'll be away for between 8-11 weeks, I don't like to have lots of cash with me.

I've never had a credit card before and I'm worried if I sign up for one for going away I won't be able to pay it off as I go along.

Any advice is greatly appreciated!

Donnie

If you have a Flexaccount then sign up for Online Banking and then use that to keep up with your payments.

apt

A credit card is probably needed if you are going to hire a car. The Halifax Clarity card is probably the best option. I don't understand your point about not being able to pay it off. You can set up a direct debit to pay the minimum or full balance when they are due. You can also set up payments via internet banking as the previous poster suggests.

galvatron20

Cos I've never had a credit card before I don't know how to pay one off.

Do you mean that I can set up a direct debit to pay off whatever amount I use?

Also with the Halifax card you always pay 12.5% interest on cash withdrawals no matter when you pay it back. I'd probably hire a car but would like to withdraw cash but not pay that interest.

Would a Fairfx card be better for getting cash out and a halifax for using for car hire?

ferf1223

we pay all our credit cards in full by direct debit each month...you just set your direct debit up that way initially (or for existing direct debits you can change to paying in full).

I would not think about using a debit card against a car rental unless you are sure that you have plenty of spare cash in the account to cover the hold they will put on it (which may take a week to clear after you've returned the car).

CountryGoose

My comment in BOLD

galvatron20 wrote: »

Cos I've never had a credit card before I don't know how to pay one off.

Do you mean that I can set up a direct debit to pay off whatever amount I use?
YES - the full balance from your UK account every month.

Also with the Halifax card you always pay 12.5% interest on cash withdrawals no matter when you pay it back. I'd probably hire a car but would like to withdraw cash but not pay that interest.

You pay annual interest of 12.9% (typical rate) on the cash. For the time you "borrow" the money, the effective cost is around 1%. Providing you pay the bill on time, you will not pay interest for the car hire

Would a Fairfx card be better for getting cash out and a halifax for using for car hire?
NO - it is cheaper to use the Halifax - 0% for spends and about 1% for cash, However, for cash at 1.5% the FairFX is a great backup that can be loaded quickly in times of need.

galvatron20

I tried to sign up for the card on Halifax's site but got turned down

Next best alternative?

Donnie

galvatron20 wrote: »

I tried to sign up for the card on Halifax's site but got turned down

Next best alternative?

Perhaps you can get yourself down to London and open an account with Metro Bank.

Then seek out a credit card that offers no interest on purchases and then use that for when CC are needed and for emergencies. Set up a DD for at least the minimum payment. Alternatively, just take any CC that will accept you and don't use it to withdraw cash.

FairFx Anywhere card via Moneysupermarket as back up in case of card loss. As you can transfer cash into in from your bank account when necessary.

apt

galvatron20 wrote: »

I tried to sign up for the card on Halifax's site but got turned down

Next best alternative?

The next best alternative is the Santander Zero card, but you have to apply in branch and if you use it to withdraw cash you should arrange to pay off the whole balance ASAP as the cash interest rate is c. 27%. The Nationwide credit card is pretty good for purchases, but not cash. As you already have a Nationwide flexaccount you might stand a better chance of being accepted.

Donnie

apt wrote: »

The next best alternative is the Santander Zero card, but you have to apply in branch and if you use it to withdraw cash you should arrange to pay off the whole balance ASAP as the cash interest rate is c. 27%. The Nationwide credit card is pretty good for purchases, but not cash. As you already have a Nationwide flexaccount you might stand a better chance of being accepted.

As I stated, it's much better for the OP to have a credit card that has an Interest Free period on Purchases whilst they are away.
The credit card is for car hire etc. So any monies blocked on the card by car hire companies or hotels will not make any impact on the OPs ability to spend whilst travelling(as long as they have set up a DD for the minimum payment).

With this in mind, the Zero card is an even better choice than the Clarity card. Next best being something like the Post Office card.

galvatron20

Donnie wrote: »

As I stated, it's much better for the OP to have a credit card that has an Interest Free period on Purchases whilst they are away.
The credit card is for car hire etc. So any monies blocked on the card by car hire companies or hotels will not make any impact on the OPs ability to spend whilst travelling(as long as they have set up a DD for the minimum payment).

With this in mind, the Zero card is an even better choice than the Clarity card. Next best being something like the Post Office card.

Would there be much difference between the Zero and Post Office if I only used the card for car hire and paid it off before any interest was added on?