Help Needed!!! Halifax Clarity Credit Card

moneysavingrookie_3

Hello all! Some advice needed if at all possible??!

So I read the cheap travel money guide and applied for the Halifax Clarity Credit Card. However on my application being successful I received a rate of 21.9% APR VARIABLE REPRESENTATIVE rather than the stated 12.9% APR in the cheap travel money article.

Forgive me if this is a silly or obvious question but with the 21.9% APR rate I've been given is this card still the best to use whilst I'm abroad?????

Many thanks for taking the time to read and hopefully reply to this message :beer:

opinions4u

Forgive me if this is a silly or obvious question but with the 21.9% APR rate I've been given is this card still the best to use whilst I'm abroad?????

Probably.

£100 at 21.9% for 14 days = 84p. Just pay it off in full (plus a bit more for residual interest) as soon as you get home.

atlantis187

How much interest would u pay on £500 @ a rate of 12.9% 30 days after withdrawal?

stazi

About £5.40

YorkshireBoy

atlantis187 wrote: »

How much interest would u pay on £500 @ a rate of 12.9% 30 days after withdrawal?

Very roughly:

12.9% is an annual rate (the A in APR denotes annual)

So, £500 for a year at 12.9% APR is £64.50

Divide by 365 days and multiply by 30 days, ie

£64.50 / 365 x 30 = £5.30


More accurately:

You should use the annual non-compounded rate...which is 12 x the monthly rate of, in your case, 1.017%...so 12.20% (often referred to as 'simple' interest)

Using this calculation method, your cost is...

£500 x 12.20% / 365 x 30 = £5.01


In 'real life':

The actual figure is likely to be skewed slightly due to the 30 days most probably spanning two statement periods so the 1.017% will compound once. This will act to increase the £5.01 figure very slightly.