Credit Cards for Abroad - Need clarification

djglenn

Hi,

I have read through Martins guide to spending money abroad, and it appears clear that the best way is to use a special credit card.

I am fine with this, as I have always been uneasy bringing large amounts of cash away with me on holidays (which is what I have always done).

However, reading the guide to best card to get I am completely confused…..

The Sainsburys one is a no no for me, as it charges £5 a month, which would be a waste of time for me on a card that I would use once / twice a year.

The Halifax one looks good (No withdrawal fee, No loading fee), but I am completely confused about the “Interest: Yes even if repaid in full” comment.

I have always paid off credit cards in full by direct debit, and have never occurred a fee. I understand that they need to make money which is fine, as when I get cash exchanged I appreciate I am getting done on the exchange rates… but just would like to know how much this “Interest” would work out to be if I paid it off in full when I return from my Holiday (or by direct debit).

Am I correct in the following?

It says the APR for this card is 12.9%, so if I withdrew £2,000 on holidays, and paid a month after then I would have to pay £21.50 in interest? (£2000 x 12.9% / 12)

Also is there any way in finding out the current Master Card exchange rate? Just so I can compare it to the exchange rate of withdrawing cash….

All advice is welcome!

Regards,

Danny

YorkshireBoy

djglenn wrote: »

Am I correct in the following?

It says the APR for this card is 12.9%, so if I withdrew £2,000 on holidays, and paid a month after then I would have to pay £21.50 in interest? (£2000 x 12.9% / 12)

It's a reasonable estimate, yes, but it'll be slightly different in reality.

There will also be some trailing, or residual, interest on the following month's statement.

Also is there any way in finding out the current Master Card exchange rate?

www.oanda.com

knightstyle

But if you set up a pay card in full from your bank account each month and time your overseas cash withdrawal to be just before the statement date you will pay much less interest, a pound or two at most.

lisyloo

so if I withdrew £2,000 on holidays, and paid a month after then I would have to pay £21.50 in interest?

Hi Danny,

If you have the money in the bank/savings, then why not pay it off as soon as you get back?
If you go for a two week holiday then you'd half it.
Why wait for the direct debit. Just pay it off.

I would not recommend putting banking details into a shared computer at an internet cafe whilst abraod.
But there is no reason why you can't make a BACS payment through on-line banking as soon as you are home.
I pay off my cash as soon as I return and pay low interest charges.

Just so I can compare it to the exchange rate of withdrawing cash….

My advice is enjoy your holiday.
You are speding £2K in cash alone which means you'd been spending many thousands of pounds on your holiday.
But you want to spend hours trawling through minor details for a few quid.
I am an ardent money saver, but there comes a point where you have to value your TIME.
We are talking abuot a few quid for the facility of having cash when you want it.
Why do you want to spend hours and hours quibbling when your spending many thousands on a holiday??
Just relax and enjoy yourself.
Take it from us, this really is the cheapet and safest way to do it.
If Mastercard/Visa have anomalies in their rates then I'm afraid you wil find them with any card, but they are likely to be tiny in relative terms.

djglenn

Thanks for the quick replies, much appreciated!

You of course are right, I would pay if off on the day of my return, and no I shouldnt be worrying about a few quid whilst on Holiday, but I just wanted to figure out what the benefits are.

I am one of these people that needs to work out how it works, rather than be told that it works :-)

RedBalloon

djglenn wrote: »

Hi,

I have read through Martins guide to spending money abroad, and it appears clear that the best way is to use a special credit card.

I am fine with this, as I have always been uneasy bringing large amounts of cash away with me on holidays (which is what I have always done).

However, reading the guide to best card to get I am completely confused…..

The Sainsburys one is a no no for me, as it charges £5 a month, which would be a waste of time for me on a card that I would use once / twice a year.

The Halifax one looks good (No withdrawal fee, No loading fee), but I am completely confused about the “Interest: Yes even if repaid in full” comment.

I have always paid off credit cards in full by direct debit, and have never occurred a fee. I understand that they need to make money which is fine, as when I get cash exchanged I appreciate I am getting done on the exchange rates… but just would like to know how much this “Interest” would work out to be if I paid it off in full when I return from my Holiday (or by direct debit).

Am I correct in the following?

It says the APR for this card is 12.9%, so if I withdrew £2,000 on holidays, and paid a month after then I would have to pay £21.50 in interest? (£2000 x 12.9% / 12)

Also is there any way in finding out the current Master Card exchange rate? Just so I can compare it to the exchange rate of withdrawing cash….

All advice is welcome!

Regards,

Danny

Is Halifax the best card to use abroad then?
Please could someone post me a link to Martins article about it as I can't find it. I need a credit card ASAP. As an existing Halifax customer would I be able to get a credit card online today and use it today also?

djglenn

RedBalloon wrote: »

Is Halifax the best card to use abroad then?
Please could someone post me a link to Martins article about it as I can't find it. I need a credit card ASAP. As an existing Halifax customer would I be able to get a credit card online today and use it today also?

I am not allowed to post links (new user)

Its in Travel Motoring, then "Cheap Travel Money"

Halifax card gets the best rating for using abroad

zzzLazyDaisy

RedBalloon wrote: »

As an existing Halifax customer would I be able to get a credit card online today and use it today also?

No, even if you were accepted today, you would still have to wait for the papers to arrive, sign and send them back, and then wait for the card to arrive. So a couple of weeks or so.

RedBalloon

Okay - I've got the halifax card on the way.
I hope my hotel accepts debit card payment.......
Thanks for your help!

Roger1

RedBalloon wrote: »

Please could someone post me a link to Martins article about it as I can't find it.

http://www.moneysavingexpert.com/travel/cheap-travel-money

I need a credit card ASAP. As an existing Halifax customer would I be able to get a credit card online today and use it today also?

Highly unlikely, I would have thought. You can apply online and probably get a quick decision, but it will take a while for the card to come through. Perhaps best to check at a local Halifax branch.

I'm happy with my Clarity card. For cash, I pay +/- 1%, depending on the accounting cycle, and for purchases it's 0%. The no fee, interest charge and exchange rate are explained in the Clarity FAQs:

Halifax wrote:

How much will I be charged for withdrawing cash abroad?You will not be charged a fee by us for withdrawing cash from an ATM (cashpoint) anywhere in the world. Some ATM providers charge a fee, but this should be made clear to you at the time of withdrawal and is unfortunately outside of our control. You will still be charged interest from the date that the withdrawal is made, but unlike some credit cards which charge a higher rate of cash, you will be charged the same competitive rate as if you had made a purchase.
What exchange rate will I be charged on transactions made abroad using the Clarity Credit Card?The exchange rate is set by Mastercard at the time that you make the transaction. Halifax do not apply any loading, fees or charges to this rate.

http://www.halifax.co.uk/creditcards/clarity.asp#What_exchange_rate_will_I_be_charged


There's a 2% cashback offer on balance transfers. http://www.halifax.co.uk/creditcards/clarity.asp

ETA: I took too long preparing this message, but leave it here in case it's useful for others.

djglenn

Well that was fun....

Just been turned down by Halifax for their Clarity card...lol?

Never had any bad debt ever, I have a mortgage which I have never missed a payment for, never had an overdraft...and never not paid a credit card off in full the month its due.

Amazing...