Credit Card for Holidays

opinions4u

I think you probably need to be a little bit more pragmatic about this year's holiday. Your limit is £500 so that isn't going to change in the immediate future.

Take some cash with you. Take a second card that, once you're close to your Clarity limit you start using (accept fees if needs be for this year). Perhaps a prepaid card would benefit you on this occasion.

Use your Clarity Card when you get home for your day to day stuff. Clear the balance religiously. Use again. Clear again. Making it your main card and using it responsibly is the best way to get the limit review automatically ahead of holiday 2012.

Si67

£500 credit limit? That's no good (unless you want to mess around paying it off immediately after each withdrawal, which I suppose does have its virtues if you can be bothered!). Anyway...

I also applied for a Halifax Clarity yesterday, primarily for purchases and withdrawing cash whilst abroad, but I now have some concerns/questions...

1. How long will it take to come through? After I'd applied, it said something about 7-10 working days for them to get around to sending me the (paper-based) credit agreement for me to sign, then another 7-10 working days for them to send me the card. Why such a delay? I thought the banks would be more enthusiastic for the business given the current financial climate! Is this delay representative, or worst-case?

I've left it late I know, but the reason for this is that MSE seemed to indicate that the card is for Halifax customers only...

Top pick: Halifax Clarity (full info). Perfect exchange rate, zero ATM fee, lower cash interest. (Halifax custs only see Clarity Reward)

...and it wasn't until yesterday that I discovered that I'd misunderstood!


2. I chose it for the one simple interest rate of APR of 12.9%, making it a better alternative to my FairFx card for cash withdrawals.

The Clarity card is our newest credit card and has one simple interest rate of 12.9% APR representative variable, however or wherever you use it.

However, elsewhere it states...

Your personal APR will be from 12.9% APR variable to 21.9% APR variable, depending on individual circumstances.

...so I've no idea what I'm going to be paying (well, I do, because if I don't get the 12.9% I won't be using it!!). What "individual circumstances"? Income? Credit rating? They know nothing else about me! Yes I know I should have spotted it.

"Clarity"? A bit of a misnomer when the true costs are far from clear.

3. Obviously my last concern is the the same as those expressed here, i.e. the low (albeit initial) credit limits. Has anyone been accepted with a decent initial credit limit?

Maybe I was a bit hasty. Maybe I should just cancel my Clarity application and stick with my FairFx card for cash, and my old-style (commission-free) Nationwide credit card for purchases.

opinions4u

Si67 wrote: »

£500 credit limit? That's no good (unless you want to mess around paying it off immediately after each withdrawal, which I suppose does have its virtues if you can be bothered!). Anyway...

It does, perhaps, reflect a prudent attitude from a lender that would have been more appropriate 3 or 4 years ago.

1. How long will it take to come through? After I'd applied, it said something about 7-10 working days for them to get around to sending me the (paper-based) credit agreement for me to sign, then another 7-10 working days for them to send me the card. Why such a delay?

Internal processes and external postal systems. You used to be able to go in to a branch to get the agreement printed off, signed and returned. Not sure if that still applies.

I thought the banks would be more enthusiastic for the business given the current financial climate!

You miss the point. The banks don't have enough cash to lend. They are less excited about loans and credit cards than they used to be.

Is this delay representative, or worst-case?

I think you'll have both agreement and card in reasonable time.

2. I chose it for the one simple interest rate of APR of 12.9%, making it a better alternative to my FairFx card for cash withdrawals.

However, elsewhere it states...

...so I've no idea what I'm going to be paying (well, I do, because if I don't get the 12.9% I won't be using it!!).

Do your sums. 21.9% for a fee free cash advance in Outer Mongolia repaid 14 days later is not expensive.

What "individual circumstances"? Income? Credit rating? They know nothing else about me! Yes I know I should have spotted it.

All of it. The less they know about you, the more likely a higher rate or a decline.

"Clarity"? A bit of a misnomer when the true costs are far from clear.

Looks clear enough to me.

3. Obviously my last concern is the the same as those expressed here, i.e. the low (albeit initial) credit limits. Has anyone been accepted with a decent initial credit limit?

Some people have, some people haven't.

Si67

opinions4u wrote: »

It does, perhaps, reflect a prudent attitude from a lender that would have been more appropriate 3 or 4 years ago.

Fair enough. I was just surprised to see such a low limit on a credit card. It may be OK for some, but would be of no use to me.

opinions4u wrote: »

Internal processes and external postal systems. You used to be able to go in to a branch to get the agreement printed off, signed and returned. Not sure if that still applies.

Then their internal processes are inefficient in the extreme. We're talking 7-10 working days just to print off and send a proforma credit agreement. Fully automated - no human intervention required. It could have been printed yesterday, and the 'external postal systems' could have delivered it today. They could have had it back, duly signed, by return of post.

opinions4u wrote: »

You miss the point. The banks don't have enough cash to lend. They are less excited about loans and credit cards than they used to be.

I miss the point? Lending money is a core business stream of the banking industry!

opinions4u wrote: »

I think you'll have both agreement and card in reasonable time.

Hope so!

opinions4u wrote: »

Do your sums.

Please don't be so patronising...

opinions4u wrote: »

21.9% for a fee free cash advance in Outer Mongolia repaid 14 days later is not expensive.

Maybe, maybe not. Still provides less of an incentive to stop using my FairFx card (and Spanish bank account) and order a Clarity card. Anyway, my main point is that they've completely negated their statement:

The Clarity card is our newest credit card and has one simple interest rate of 12.9% APR representative variable, however or wherever you use it.

opinions4u wrote: »

All of it. The less they know about you, the more likely a higher rate or a decline.

They didn't really ask many questions! Can't think of anything that would make them consider me to be a significant risk though.

opinions4u wrote: »

Looks clear enough to me.

What's clear about statements like:

Your personal APR will be from 12.9% APR variable to 21.9% APR variable, depending on individual circumstances.

opinions4u wrote: »

Some people have, some people haven't

For sure! Hence the question. I was after specific experiences.

scottishblondie

Si67 wrote: »

Has anyone been accepted with a decent initial credit limit?

My initial limit was just over 3k, so plenty! Cancelling you application at this stage won't do any good for you, you'll already have been credit searched so you might just as well wait and see.

Si67

scottishblondie wrote: »

My initial limit was just over 3k

3K would be fine.

Did you also get the publicised "simple interest rate of 12.9%"?

Also, can you remember how long it took to arrive? Thanks.

opinions4u

Please don't be so patronising...

The comment wasn't in any way meant to be patronising. I'm sorry it came across that way.

£1,000 withdrawn as cash for 14 days at 21.9% will cost you £8.40 using Clarity. Granted, that's more than you'd pay at 12.9%, but it's a hell of a lot less than the £30 plus cash advance interest rate that you'd expect to pay with a "normal" credit card.

Si67

I know - it's not too bad I suppose. It's just not one simple interest rate of 12.9% APR!

I'd never normally use a credit card to withdraw cash. I used to use my Nationwide debit card until they started charging. I now use FairFx (or my Spanish bank account cashpoint card).

Thanks

opinions4u

Si67 wrote: »

I know - it's not too bad I suppose. It's just not one simple interest rate of 12.9% APR!

As opposed to 0% for 3 months for balance transfers, 0% for 9 months for purchases from petrol stations, 12.9% for anything else (except for cash advances that are charged at 29.9%).

So one simple interest rate for all types of transaction. 12.9% for the 51% who are lucky, 17.9% or 21.9% for those who aren't.

But it is one rate once you've been accepted, unlike most other cards that confuse more.

I'd never normally use a credit card to withdraw cash. I used to use my Nationwide debit card until they started charging. I now use FairFx (or my Spanish bank account cashpoint card).

So if you're only doing purchase transactions, and clearing the balance in full, there won't be any charges at all for overseas use.

Other than the currency changing which I believe is the official Mastercard rate.

chattychappy

Well, "Clarity" is just a brand name, a piece of advertising puff. I wouldn't take it so seriously.

I'm thinking of complaining to Tescos. They tell me "every little helps". I can point to a number of examples of "little" things which haven't helped at all.