Card to use for backpacking

Jane_Stollery

Hi All,

I am booked to go travelling round the world in Nov. For spending I have got myself a Halifax clarity card with an interest rate of 17.9%

I need a debit card for withdrawing cash though. At the moment I bank with Santander and Natwest, but am willing to switch for a cheaper withdrawal rate??

Help please!!

Jane x

fifeken

Withdraw using your Clarity Card at ATMs and pay if off as soon as you can (via Internet Banking) from your Santander or Natwest account. You can set up the payments before you go to try it out/make sure it's working.

CLAPTON

you haven't said where you are going
or for how long
or whether you have sufficient funds to pay CCs in full as you go

Jane_Stollery

I am going to South America for 3 months, New Zealand for 6 weeks, Fiji for 2 weeks and then Australia for a year, I should have sufficient funds to pay back the money as soon as possible, I am wary of withdrawing on a cc though as everyone says this is the worst thing to do?

CLAPTON

Best to take two debit cards and 2 CCs
as you never know when a card might be refused for no particular reason or a card may be stopped or even lost

Nationwide used to be a favoured debit card as there was no foreign loading on the card but unfortunately that changes in November so that it costs 2% for any foreign tranaction (including to withdraw cash); however that's still better than most other debit cards
Santander zero current account has not charges for withdrawing abroad but you may not meet their a/c criteria


Normally it's said not to withdraw cash from a credit card as you pay a 3% fee plus very high interest; however the Clarity card has no fee and so if you use it to withdraw money abroad but pay in full soon afterwards it's now the one of the cheapest way of getting cash from an ATM abroad; similarly the santander zero CC has no overseas loading or fee.

Jane_Stollery

I check the Santander website and do not qualify for their zero account, would you be able to recommend another debit card which would be OK?

Also, forgive me but am new to CC as I only just got one, but if my interest is 17.9% and I withdraw £100 worth of cash from abroad, will I not automatically have to pay back £117.90?

dzug1

Jane_Stollery wrote: »

I check the Santander website and do not qualify for their zero account, would you be able to recommend another debit card which would be OK?

Also, forgive me but am new to CC as I only just got one, but if my interest is 17.9% and I withdraw £100 worth of cash from abroad, will I not automatically have to pay back £117.90?

No - that interest is an ANNUAL rate - you will be borrowing for a much shorter period. If it's say a month before you pay back very roughly £1.50 in interest

dzug1

Jane_Stollery wrote: »

I am going to South America for 3 months, New Zealand for 6 weeks, Fiji for 2 weeks and then Australia for a year, I should have sufficient funds to pay back the money as soon as possible, I am wary of withdrawing on a cc though as everyone says this is the worst thing to do?

Everyone overgeneralises - it can be the worst thing to do but with the right card it can be if not the best thing not far off it.

CLAPTON

Jane_Stollery wrote: »

I check the Santander website and do not qualify for their zero account, would you be able to recommend another debit card which would be OK?

Also, forgive me but am new to CC as I only just got one, but if my interest is 17.9% and I withdraw £100 worth of cash from abroad, will I not automatically have to pay back £117.90?

it works like this

the APR (annual percentage rate) of 17.9%

so if you spend £100

then you incur 100 x 17.9%/365 per day in interest
so if you say paid the CC in full after 7 days then the interest would be
100 x 17.9% x 7/365 = 34pence (not a lot for the convenience)

with internet banking or maybe a friend/parent in the UK you can clear the card easily

note there is another thread on the board covering similar info that you might wish to read

inmypocketnottheirs

For fee free withdrawals in € or US$ consider opening a citibank account. You can have a visa debit card that can be switched between euro, dollar and sterling current accounts by making a phone call. Funds can be transferred between accounts free of charge and in real time. Have a look at https://www.citibank.co.uk.

Jane_Stollery

Many Thanks for all your help!! I have actually just been looking at The Caxton FX Global Traveller Card - so would this be worth getting and using instead of my debit card? From what I gather I can just pay the money in from my normal current accounts as I go along via internet banking, then spend on it abroad with no fees? Is there a catch that I'm missing here?

Jane xx