Halifax clarity - approved but with high APR

jd87

I've been approved for a Halifax Clarity card which I want so that I can use it for spending on holiday abroad next month. The problem is the forms came today and it's says I will get 21.9% APR. I know this is based on credit scoring etc, but is there any way to get that lowered if I ask? Maybe if I'm willing to accept a lower credit limit? After the online application process it said I'd get a limit of something like £4800 which is way more than I need.

I know if you pay off your balance in full you normally don't incur interest, but the problem is part of the point of this card was to use it to withdraw cash abroad, and as I understand it, cash withdrawals incur interest regardless of whether you pay off in full - so you see the interest rate is important to me.

Any advice much appreciated. Thanks.

YorkshireBoy

The difference is around 65p per £100 withdrawn per full month.

Assuming you'll withdraw £500 that's only just over £3 in extra charges...not a lot? Even less if it's a 1-2 week holiday and you settle immediately on your return.

But to answer your question, I don't think you'll get them to lower the rate...even if you offer the proposed trade-off. Good luck if you try though.

APRs are determined on risk, whereas credit limit is based on income, eg you may have a decent income but not much credit history? If that doesn't fit your profile then it's just down to the peculiarities of credit scoring!

zagfles

Yes as above it won't make a lot of difference for a short holiday - and using it to get cash abroad is still much better value than virtually every other method, especially trotting off down the post office or bank to change cash before you go, as most people seem to!

Important thing is to pay it off as soon as you get back - don't wait for the statement.

AdamJK_2

As said above the relative difference is nothing on such small amounts paid off the same month. I have heard of cases where the customer has called up to cancel the card and been offered a more competitive rate - retentions do have some flexibility with promo rates I believe.

To be honest I use mine at the same rate as the overall saving is better than using other cards - but that said most hotels offer free wifi so is it possible you could withdraw then pay money from your current account a day later using internet/mobile banking? That way you'd only get a days interest of next to nothing.

baby_frogmella

OP, see my thread here. As i mention in that thread, the interest charges on frequent LARGE cash withdrawals can mount up especially if you don't pay off your withdrawals immediately but you have a direct debit setup to pay off your statement balance in full every month

With most CC companies, the better your credit history, the lower the APR. However from my experience (and others on these forums), the APR you get with the Halifax Clarity is down to pot luck...irrespective of your credit worthiness. Halifax will NOT negotiate your APR even if you threaten to close your account.

zagfles

baby_frogmella wrote: »

OP, see my thread here. As i mention in that thread, the interest charges on frequent LARGE cash withdrawals can mount up especially if you don't pay off your withdrawals immediately but you have a direct debit setup to pay off your statement balance in full every month

With most CC companies, the better your credit history, the lower the APR. However from my experience (and others on these forums), the APR you get with the Halifax Clarity is down to pot luck...irrespective of your credit worthiness. Halifax will NOT negotiate your APR even if you threaten to close your account.

If you make frequent very large withdrawals you should be considering MetroBank or N&P debit cards etc rather than using the Clarity whatever the APR.

But for a typical holiday where you withdraw around £1000 over a couple of weeks the APR will only make about £2 difference.

gt94sss2

zagfles wrote: »

If you make frequent very large withdrawals you should be considering MetroBank or N&P etc rather than using the Clarity whatever the APR.

Out of interest - why?

Regards
Sunil

zagfles

gt94sss2 wrote: »

Out of interest - why?

Regards
Sunil

Because then you won't pay anything, no interest, no fee, no exchange rate markup (I meant their debit cards which I should have clarified as this is the CC board).

chattychappy

jd87 wrote: »

After the online application process it said I'd get a limit of something like £4800 which is way more than I need.

Hopefully. BUT, when abroad you never know what kind of emergency you might have. It could be an insured risk, but you might still need to pay up front or at least use a card as a guarantee.

Even if there was a trade-off as you suggested (credit limit v APR), I'd go for the credit limit at the expense of a couple of quid on my interest.