Incorrect Info from the OneShow?

artha

I was watching the OneShow (BBC 7pm) tonight and they had an article on spending abroad and stated that under no circumstances should you use a credit card to withdraw cash. Isn't this a bit misleading as, if my reading of the MSE main site article is correct, the cheapest way of withdrawing cash is to use credit cards like the Halifax clarity card and pay off the balance in full. According to the main site £100 of cash will only attract a charge of £1 which is much cheaper than using a debit card. Have I got this right?

pompeyrich

There is no interest free period for cash withdrawels on the Clarity card, or any other credit card that I know of. So you will pay interest from the dat you withdraw the cash until you pay the statement and there may even be a bit more on the following months statement to cover the interest from the date of the 1st statement until the date you pay it off. Click below for clarity card charges, especially interest free periods.
CLARITY CARD T&Cs

dzug1

It's an oversimplification by the one show - popular journalists always oversimplify because they know a lot of their audience is incapable of multiple choice decisions.
In getting cash overseas there's probably at least half a dozen factors to be taken into account - you can't simplify that to mass audience understanding. You say what applies most of the time - don't use a credit card for cash. It's not incorrect as such - just over simplified
And a debit card CAN be free.

artha

pompeyrich wrote: »

There is no interest free period for cash withdrawels on the Clarity card, or any other credit card that I know of. So you will pay interest from the dat you withdraw the cash until you pay the statement and there may even be a bit more on the following months statement to cover the interest from the date of the 1st statement until the date you pay it off. Click below for clarity card charges, especially interest free periods.
CLARITY CARD T&Cs

I realise that there is no interest free period for cash but the relatively low rate of 12.9% APR, I presume, gives rise to the £1 per £100 cash advance charge illustrated in the MSE main site article on travel cash (if you pay the balance outstanding in full)

bagand96

I wouldn't say the One Show were incorrect or deliberately misleading. Just that they didn't perhaps tell the "full" story in great detail. Thats probably because of the nature of the One Show, its a generic programme with a mass audience. I don't know how long or how much detail the feature on spending abroad was, but perhaps they didn't have enough time to go into great detail.

Looking on MSE, there are only a handful of credit cards that are good for foreign spending, Halifax Clarity being the best, with a few more being not too bad. However that is a very small number of cards set against the hundreds of credit cards available to the public. If you are making a quick piece, to a mass audience, then "don't withdraw cash abroad on your credit card" will be very good advice to the majority of your viewers.

A generalisation yes, but not a bad one. Someone who is reading Martin's article on foreign spending has obviousy taken the time to research it and wll be prepared for detailed info.

I realise that there is no interest free period for cash but the relatively low rate of 12.9% APR, I presume, gives rise to the £1 per £100 cash advance charge illustrated in the MSE main site article on travel cash (if you pay the balance outstanding in full)

That's correct. Although bare in mind not everyone gets offered the 12.9% rate, if you get a bigger rate, the interest will obviously be more. But for people with 12.9%, the Clarity is pretty much unbeatable.

nigelgg

I used my halifax card to withdraw cash in Germany in April. I got out about 400 euros, and was charged a total of 2.15 GBP interest, about 54p / 100 GBP.

stilltheone

nigelgg wrote: »

I used my halifax card to withdraw cash in Germany in April. I got out about 400 euros, and was charged a total of 2.15 GBP interest, about 54p / 100 GBP.

Is the Euro at parity with the Pound now??

Doshwaster

I would say The One Show would be the last place people should trust for travel financial advice. The whole subject is far too complex to be explained in a few minutes in simple terms.

You might as well ask Ant & Dec for legal advice.

artha

Doshwaster wrote: »

I would say The One Show would be the last place people should trust for travel financial advice. The whole subject is far too complex to be explained in a few minutes in simple terms.

You might as well ask Ant & Dec for legal advice.

So why do they bother? Programmes of this type normally "roll out" Martin Lewis for articles of broad consumer interest. The length of the article was certainly long enough to go through the content of the MSE main site article butthen it probably wouldn't have allowed enough time to show views of Dover, crossing the channel by ferry, various restaurants in Calais etc.

Doshwaster

artha wrote: »

So why do they bother? Programmes of this type normally "roll out" Martin Lewis for articles of broad consumer interest. The length of the article was certainly long enough to go through the content of the MSE main site article butthen it probably wouldn't have allowed enough time to show views of Dover, crossing the channel by ferry, various restaurants in Calais etc.

"The One Show. Why do they bother?"

A very good question and one I think about every time I pay my TV licence fee

I suppose the report gave the opportunity for a reporter, producer, cameraman and sound recorder to have a jolly in Calais in the interests of "research"

budgetflyer

In "General" they were probably right.

Just a guess, but sampling 1000 people who drew money out by credit card, probably only about 5% would have a credit card that didn't incurr a lot of charges abroad.
So for about 95% its good advice.