Some Questions on the Sainsbury's Gold Card

osaddict

I've looked at this card before but dismissed it, however, I'm now in the situation where I'm going to be travelling to Europe and US before the end of year.

I've not got any form of Travel Insurance at the moment. I do have a Halifax Clarity card.

It seems to me that the Sainsbury's card will address the Travel Insurance side of things, even covering 'Independent Travel' - i.e. not package deals.

It also seems the Sainsbury's card is BETTER than the Halifax clarity for spending abroad, and if I'm reading Martin's article correctly using it in say France is no different to using it in London?

Assuming you setup a direct debit to pay the card off in full each month it seems to me that the only costs you would incur are if you used the card to take cash out from an ATM? (As is the case with all credit cards).

Is my understanding of the above correct?

As an additional point, I know it's not wise to apply willy nilly for credit cards, however, if I've only applied for a Halfax Clarity (earlier this year) and I score 'good' on the credit score test on this website then should I have any other concern as regards taking out this card?

Thanks for reading

Wannie_2

There are no costs for withdrawing cash. The only cost is the £60 pounds per year, as long as you pay the full statement amount every month.

The insurance is not great, with quite high excess amounts and only cover for up to 24 days per trip. Though it is most certainly better than nothing. Compare independent insurance costs.

I'm not sure why all the excitement over the Clarity. A lot of sheep around I suppose. Anything written in the articles is followed blindly, like a bible. In fact the Metro Bank credit card is currently better.

I use a no fee debit card for cash withdrawals, rather than scrambling around trying to pay off a credit card as quickly as possible. That leaves a lot of credit card choices for use abroad.

chattychappy

Ditto the comments about insurance.

The great thing about buying it yourself on internet is often you can tailor it to exactly what you want. Once purchased, you will have it for 12 months. Insurance with credit cards changes from time to time (I used to have full travel insurance with Amex Platinum chargecard) - they shop around to cut their costs and this can entail your benefits being changed at short notice.

For example, I need long trips and a large number of days overseas in total. But I don't need to insure luggage/missed flights etc. I have stuff at my destination so don't carry much. When I do it's priority tagged and has yet to go astray. The nature of my luggage would mean it's probably not covered anyway. I don't care to subsidise other people's carelessness or fraudulent claims and as for missed flight etc I always fly on flexible tickets anyway so it's not a big thing. (The only time I missed a flight was when I forgot - and only remembered 2 days later!)

Being a pudgy bloke often on 17 hour flights (including transit), I only care about medical cover. Excluding stuff I don't need I can obtain this very cheaply... so then I google around to see how well firms process claims. The last couple of years I've been with Amex (ironic given my comment above - but it's different if not bundled) or M&S. I used insure&go for a while, but read too much stuff about their playing games with claims. This isn't an insurance review.. just to give you an idea. You can't just judge the product by the policy document.

Yep, Metrobank offer free debit+credit card withdrawals, though they haven't been around for long so haven't got around to opening an account with them (despite walking past their Holborn branch every day for a week). All that dog stuff put me off.

I'm happy using Santander Zero, Post Office, the "old" Nationwide Gold (1% outside Europe) as my main credit cards with a number of others for backups.

For cash I use Zero. No fee and no loading. I don't "rush" to pay it off so generally pay some interest. But as withdrawals are small, I'm travelling on business, have my own home office abroad, it's no hassle to arrange payment promptly and interest is peanuts anyway. NW debit is my (now expensive) backup, but I am extremely wary of using my debit card anywhere (including when in the UK) for anything. I have only one main current account and it's my money. It could cause me big logistical problems if there is some fraud/error whilst I'm overseas for a couple of months or more. So I like a firebreak - no debit card usage, no DDs, cheques destroyed etc.

Whatever you do, take backups and have contingencies. I always say this. I mentioned in another thread both Zero and PO got blocked yesterday. This is despite not using them anywhere I hadn't used them before. Fraud prevention systems are really whacky. Most CCs tell you to tell them where you are going before you leave. This quaint idea that a little man writes a note on a system so they won't decline you. I have found this makes little difference, though I doubt it does any harm. Incidentally they always unblock them if you call after the event. If you don't have a cheap method of making phone calls, a single call might cost you more than using a 2.75% loaded card for the rest of your trip!

If you search by my ID, a number of my posts are on CC usage overseas.

Finally, watch out for DCC - dynamic currency conversion. ALWAYS pay in local currency. Some machines detect a UK credit card and offer you a GBP figure. The exchange rate will be a tourist rate and you will get shafted with little recourse after the event. You are supposed to get a choice. I always have - though stories here suggest people sometimes don't. My pushiest case was at Geneva airport. Presented the goods, swiped the card, a little touch screen showed a big box with a GBP amount with "confirm" next to a button. A much smaller box with the CHF amount was underneath with another button. The shop assistant pointed to the GBP amount and said "press here". I pressed the CHF amount and she replied "clever man".

osaddict

Wannie wrote: »

There are no costs for withdrawing cash. The only cost is the £60 pounds per year, as long as you pay the full statement amount every month.

The insurance is not great, with quite high excess amounts and only cover for up to 24 days per trip. Though it is most certainly better than nothing. Compare independent insurance costs.

I'm not sure why all the excitement over the Clarity. A lot of sheep around I suppose. Anything written in the articles is followed blindly, like a bible. In fact the Metro Bank credit card is currently better.

I use a no fee debit card for cash withdrawals, rather than scrambling around trying to pay off a credit card as quickly as possible. That leaves a lot of credit card choices for use abroad.

Thanks for the response. I thought all credit cards attracted interest when withdrawing? However, I'm not 100% sure how this works. If for example it's 20% on cash withdrawals and you take out £100 and you pay back in full via direct debit when requested then I guess how much you pay in interest depends on when you took the cash out in that month? (I guess this is slightly off topic for the thread though and something I need to research, I've not bothered because I didn't intend to use the card for cash since I have a NatWest debit card).

As regards the insurance, It's very unlikely I'll go on a trip over 24 days so that's not a problem. I'll check out the excess against the other providers.

As for Clarity, yes, I'm guilty of being a sheep on that front actually, but in my defense I was told I had to go to the US with virtually no notice so I had a lot to sort out, sadly that never materialized and keeps getting pushed back!

Thanks for the tips about the Metro Card I shall give this a look over too.

chattychappy

I think Sainsbury is exceptional in that there is no interest on ATM withdrawals provided the balance is paid in full by the usual date. It is the only card I know of that provides this.

Other credit cards charge interest on cash transactions from the date of transaction until payment is received (ie no "up to 56 day interest free period").

Wannie_2

chattychappy wrote: »

I think Sainsbury is exceptional in that there is no interest on ATM withdrawals provided the balance is paid in full by the usual date. It is the only card I know of that provides this.

Other credit cards charge interest on cash transactions from the date of transaction until payment is received (ie no "up to 56 day interest free period").

SAGA was another(fee free too), but they stopped that in January of this year.

Wannie_2

osaddict wrote: »

Thanks for the response. I thought all credit cards attracted interest when withdrawing? However, I'm not 100% sure how this works. If for example it's 20% on cash withdrawals and you take out £100 and you pay back in full via direct debit when requested then I guess how much you pay in interest depends on when you took the cash out in that month? (I guess this is slightly off topic for the thread though and something I need to research, I've not bothered because I didn't intend to use the card for cash since I have a NatWest debit card).

As regards the insurance, It's very unlikely I'll go on a trip over 24 days so that's not a problem. I'll check out the excess against the other providers.

As for Clarity, yes, I'm guilty of being a sheep on that front actually, but in my defense I was told I had to go to the US with virtually no notice so I had a lot to sort out, sadly that never materialized and keeps getting pushed back!

Thanks for the tips about the Metro Card I shall give this a look over too.

NatWest! :eek:

If you are paying for the Sainsburys card and can afford to pay the full statement balance every month, then use their card. Do not use the NatWest card.

If you are going with Metro, their debit card is the best of all.

osaddict

chattychappy wrote: »

Ditto the comments about insurance.

The great thing about buying it yourself on internet is often you can tailor it to exactly what you want. Once purchased, you will have it for 12 months. Insurance with credit cards changes from time to time (I used to have full travel insurance with Amex Platinum chargecard) - they shop around to cut their costs and this can entail your benefits being changed at short notice.

For example, I need long trips and a large number of days overseas in total. But I don't need to insure luggage/missed flights etc. I have stuff at my destination so don't carry much. When I do it's priority tagged and has yet to go astray. The nature of my luggage would mean it's probably not covered anyway. I don't care to subsidise other people's carelessness or fraudulent claims and as for missed flight etc I always fly on flexible tickets anyway so it's not a big thing. (The only time I missed a flight was when I forgot - and only remembered 2 days later!)

Being a pudgy bloke often on 17 hour flights (including transit), I only care about medical cover. Excluding stuff I don't need I can obtain this very cheaply... so then I google around to see how well firms process claims. The last couple of years I've been with Amex (ironic given my comment above - but it's different if not bundled) or M&S. I used insure&go for a while, but read too much stuff about their playing games with claims. This isn't an insurance review.. just to give you an idea. You can't just judge the product by the policy document.

Yep, Metrobank offer free debit+credit card withdrawals, though they haven't been around for long so haven't got around to opening an account with them (despite walking past their Holborn branch every day for a week). All that dog stuff put me off.

I'm happy using Santander Zero, Post Office, the "old" Nationwide Gold (1% outside Europe) as my main credit cards with a number of others for backups.

For cash I use Zero. No fee and no loading. I don't "rush" to pay it off so generally pay some interest. But as withdrawals are small, I'm travelling on business, have my own home office abroad, it's no hassle to arrange payment promptly and interest is peanuts anyway. NW debit is my (now expensive) backup, but I am extremely wary of using my debit card anywhere (including when in the UK) for anything. I have only one main current account and it's my money. It could cause me big logistical problems if there is some fraud/error whilst I'm overseas for a couple of months or more. So I like a firebreak - no debit card usage, no DDs, cheques destroyed etc.

Whatever you do, take backups and have contingencies. I always say this. I mentioned in another thread both Zero and PO got blocked yesterday. This is despite not using them anywhere I hadn't used them before. Fraud prevention systems are really whacky. Most CCs tell you to tell them where you are going before you leave. This quaint idea that a little man writes a note on a system so they won't decline you. I have found this makes little difference, though I doubt it does any harm. Incidentally they always unblock them if you call after the event. If you don't have a cheap method of making phone calls, a single call might cost you more than using a 2.75% loaded card for the rest of your trip!

If you search by my ID, a number of my posts are on CC usage overseas.

Finally, watch out for DCC - dynamic currency conversion. ALWAYS pay in local currency. Some machines detect a UK credit card and offer you a GBP figure. The exchange rate will be a tourist rate and you will get shafted with little recourse after the event. You are supposed to get a choice. I always have - though stories here suggest people sometimes don't. My pushiest case was at Geneva airport. Presented the goods, swiped the card, a little touch screen showed a big box with a GBP amount with "confirm" next to a button. A much smaller box with the CHF amount was underneath with another button. The shop assistant pointed to the GBP amount and said "press here". I pressed the CHF amount and she replied "clever man".

Thanks for the comprehensive reply there.

I take the points you guys make about the credit card company changing the goal posts as regards what the insurance covers. My needs are fairly basic as a traveller taking short holidays with nothing especially valuable being taken with me besides a camera and a Kindle. As I said I'll still research the alternative travel insurance providers and see how they stack up. I guess the thing I'm looking to insure against the most is the fact that I'm doing a DIY trip and typically favour these, I see Sainsbury's cover this but some others may be better so I'll have to see how much they charge etc.

Metrobank, not heard of them I'll look into that. What's the dog stuff you mention?

In terms of UK spending I tend to use my NW Debit card for most stuff, however, this is typically lunch from places like Eat or Tesco or taking cash out, or small online purchases of under 50 quid.

The point about fraud prevention is an interesting one and not one I'd considered, I'll get another card if for this reason alone. I've heard many stories such as yours (although not with 2 cards at once!)

Dynamic loading, yeah I've read about this as something to be wary of. I guess it makes sense they make it more obvious to pay in GBP to try and shaft you, I shall be eagle eyed when paying via card, especially if I've had a couple ha ha.

Thanks once again for the in depth post, I'll also search your previous posts for overseas CC usage.

osaddict

Wannie wrote: »

NatWest! :eek:

If you are paying for the Sainsburys card and can afford to pay the full statement balance every month, then use their card. Do not use the NatWest card.

If you are going with Metro, their debit card is the best of all.

Whatever credit card I get I'll tie it in to the NW current account and make sure it's paid off in full.

What I meant was that I only obtained the Clarity card for overseas spending - my spending in general is usually cash with small online purchases so some benefit if I used a credit card but not hugely - I'm not buying washing machines or thing over £100 very often.