Halifax Clarity Credit Card

craigmaxwell

Hi All,

I have a query regarding a Halifax Clarity Credit card - I couldn't find a relevant existing thread (but please do feel free to link me there if one exists that answers my queries).

I have applied for this card (my first credit card) as I am going to Spain for a fortnight in August and want to cut costs as much as possible. However, I am unsure of the terminology used with credit cards. What I want to know is, what constitutes a "purchase"? For this card, as I understand it, purchases on the credit card attract no interest if paid off in full (and also suffer no "loading" on foreign currency transactions). However, cash advances/withdrawals attract interest at 1%.

The only spending I intend to do is on groceries (at a supermarket) and maybe hiring a child seat from the car rental providers. Are these "purchases" I can make on a credit card and pay no interest? Also, when I make a purchase on my debit card in the UK I have the option of cashback at the till - is this common in other countries? If so, would this count as a purchase or a cash withdrawal (i.e. will this circumvent the cash withdrawal interest charge)?

In essence, please tell me the cheapest way for me to get groceries and a small amount of cash!!

Thanks

reclusive46

Yes, unless you get something out of a cash machine, bank (Ie. Money or Foreign or British Cash) or is a purchase that involves gambling/paypal, it all comes under the no interest if paid in full at the end of the month. All of the purchases you mentioned will be covered by this.

guesswho2000

I've not come across cashback when paying by card abroad. I wouldn't recommend using your debit card at all (unless Santander Zero Current Account, Metrobank or N&P Gold/Gold Light Account) due to their fees.

If you get the Clarity, use it for cash withdrawals as there's no fee, just interest (which would be a tiny amount, and less than you'd pay in fees on most debit cards).

m0ns00n

craigmaxwell wrote: »

Hi All,

I have a query regarding a Halifax Clarity Credit card - I couldn't find a relevant existing thread (but please do feel free to link me there if one exists that answers my queries).

I have applied for this card (my first credit card) as I am going to Spain for a fortnight in August and want to cut costs as much as possible. However, I am unsure of the terminology used with credit cards. What I want to know is, what constitutes a "purchase"? For this card, as I understand it, purchases on the credit card attract no interest if paid off in full (and also suffer no "loading" on foreign currency transactions). However, cash advances/withdrawals attract interest at 1%.

Generally speaking, a purchase is when you buy goods or a service. A cash advance is when you withdraw cash from an ATM (although there are other examples such as gambling transactions).

craigmaxwell wrote: »

The only spending I intend to do is on groceries (at a supermarket) and maybe hiring a child seat from the car rental providers. Are these "purchases" I can make on a credit card and pay no interest?

Your groceries and car seat will definitely be purchases, which will attract no interest provided you pay off in full.

craigmaxwell wrote: »

Also, when I make a purchase on my debit card in the UK I have the option of cashback at the till - is this common in other countries? If so, would this count as a purchase or a cash withdrawal (i.e. will this circumvent the cash withdrawal interest charge)?

Are you still talking about the Clarity here? As it's a credit card, you definitely won't be able to get cashback.

craigmaxwell wrote: »

In essence, please tell me the cheapest way for me to get groceries and a small amount of cash!!

Thanks

The cheapest way would be as follows:

1) Exchange a minimal amount of foreign currency in the UK (enough to cover you until you get to an ATM abroad)

2) Pay with your Clarity whenever you can (try to avoid using cash)

3) If you need some cash, withdraw this from an ATM using your Clarity (this will have an interest charge of approx 1-2% per month, depending on your APR). Make a payment to the card as soon as you can to cover the amount you withdrew, thus minimising the interest costs.

craigmaxwell

m0ns00n wrote: »

Are you still talking about the Clarity here? As it's a credit card, you definitely won't be able to get cashback.

No, I was talking about my regular current account, for which I have a debit card. I wasn't sure whether or not I would be able to get cashback on a credit card. Thank you.

m0ns00n wrote: »

The cheapest way would be as follows:

1) Exchange a minimal amount of foreign currency in the UK (enough to cover you until you get to an ATM abroad)

2) Pay with your Clarity whenever you can (try to avoid using cash)

3) If you need some cash, withdraw this from an ATM using your Clarity (this will have an interest charge of approx 1-2% per month, depending on your APR). Make a payment to the card as soon as you can to cover the amount you withdrew, thus minimising the interest costs.

Thank you for your advice - exactly what I needed to know.

Regards
Craig

alexl

Hi I wanted to clarify something about the Clarity card (or any card for that matter)....

If I pay (or load - right?) say £1000 on to the credit card before I go abroad, can I withdraw the money once I arrived in my destination, let's say 1250 EUROS absolutely free of charge? (in installments of 300 euros a day for example).

Because I am not borrowing the money from the credit card company it should be free right??

thanks in advance.

Gromitt

It's against the T&Cs to put the card into credit. Doing so could cause the funds to be returned to you, or your card cancelled, etc.

baby_frogmella

As Gromitt has stated, you run a serious risk of having your account closed by Halifax by loading your account with such a large amount. Is it really worth the risk?

alexl

really??! I asked a Halifax operator on the phone and her answer was unclear, she said It wasn't a good idea but I assumed that was because they don't want you to do it as they cannot charge fees for you to withdraw it as it is not their money you are borrowing.

Ok so now I'm really confused...when we refer to 'loading' a credit card we are talking about putting money onto it in advance yes, so there is a positive balance?

I'm certain the woman on the phone didn't mention any serious breach of contract should I load money onto the card....Are you speaking from experience with this?

thanks

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edit----

I've read from the Halifax webiste:

'You will not be charged a fee by us for withdrawing cash from an ATM (cashpoint) anywhere in the world. Some ATM providers charge a fee, but this should be made clear to you at the time of withdrawal and is unfortunately outside of our control. You will still be charged interest from the date that the withdrawal is made, but unlike some credit cards which charge a higher rate of cash, you will be charged the same competitive rate as if you had made a purchase,'

Do customers who pay the balance off in full each month still accumulate interest? If so can this be avoided by, say, paying the amount withdrawn the very next day f(rom a UK Current account in sterling)??

CLAPTON

the interest free period only applies to purchases; for cash withdrawals you pay interest from the time you withdraw to the time you pay.

so paying the amount withdrawn next day would limit the amount of interest
however get it in proportion; if you withdrew 100 cash and paid a couple of weeks later your interest would be about 50 pence (assuming a 12.9% APR card)

Gromitt

alexl wrote: »

really??! I asked a Halifax operator on the phone and her answer was unclear

The website is quite clear:

=========================================
You must not make payments (or transfer funds from another credit or store card) to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money was sent.
=========================================

So doing so is a breach of the terms and conditions of the account, and as such, they are within their rights to cancel your agreement.