Best 12 Month 0% Purchase Card For Abroad

belly1

I am looking for the best credit card to use for my 6 months travelling the world (USA, Fiji, NZ, Oz and Thailand).

I won't be using the card as a main source of cash, just for the odd big payment, i.e hostel/hotel/tour bookings. My estimates have the total expenditure at £2500 over the 6 months; a total of about 20 transactions.
For ATM withdrawals/other small purchases, I have got a FAIRFX card (this will carry the majority of my money, topping up when necessary from my HSBC OB)

The MOST important thing needed for this credit card is a 12 month 0% on purchases. This is because I will be keeping repayments low/minimum until after I come back, where I will have 5/6 months to repay the remainder before time runs out.

I am aware of the 'specialist' travel cards available e.g. Clarity/Zero/Post office. however, these aren't suitable because they don't offer the long 0% on purchases that I need.

Therefore, i've realised that I may just have to take the fees on the chin. What I would like to know is; how much extra in fees am i likely to be paying over the 6 months, using a standard card such as Halifax or Virgin etc.

I have been accepted for a Halifax card which seems like it will do the trick. Just looking for opinions really as i don't fully understand the charges/fees involved. In the summary box under 'charges' it says foreign exchange commission = 2.95% is this the total in extras I will pay per transaction? Need some expert advice here really. Never had a credit card, nevermind used one abroad.

Any help/constructive critisism would be appreciated. Preferably help though, go easy on me, i'm financially inexperienced.

belly1

anyone have any advice for me? :j

YorkshireBoy

belly1 wrote: »

In the summary box under 'charges' it says foreign exchange commission = 2.95% is this the total in extras I will pay per transaction?

Yes. Every £100 you put on the card will cost you £102.95.

Never had a credit card

Then depending on your other circumstances, £2.5K might be a little high for them as an initial credit limit. Or do you already know what it is?

chattychappy

Most of the non-specials load by 2.75% to 2.99%. Ie for each transaction overseas, you will pay that much on top. It will be part of the purchase - so still part of your 12 month deal.

One to avoid (and is tempting given your requirements) is the Tesco card. They seem to use a duff exchange rate in the first place and then load on top. Other cards seem to use standard visa/mastercard rates as a base - which is pretty much the interbank rate. (Ie near enough a centre rate.) But frankly I don't suppose many people here will be able to to say for sure, because most would be using Zero, PO etc.

You say you won't be using the card as a "main source of cash". Bear in mind that ANY usage for cash could be very expensive. Even assuming there are no locally applied charges (often there are), you will likely be paying a cash advance fee (3%?), plus the loading (say 2.75%), plus interest from the date of the transaction (say 1.5% for APR 19.5%). After 6 months, £100 would have become £116... (less repayments).

Also bear in mind that some places (I'm thinking Thailand here) are more cash-oriented. You might find you need more cash than you'd expected, or that when paying by credit card an extra fee is demanded or a higher price is offered.

Whatever you do, have a back up. Cards are prone to stop working overseas.Also if you lose one, getting a replacement can be very difficult.

Don't forget that during the 6 months, you will still be having to meet the minimum repayments.