Halifax Clarity vs Debit Card

Mister_Deeds

Hi all, new to the site but joined as I'm looking for some advice:

I'm going to be taking a one off, once in a lifetime, extended stay abroad this year. I'll be away 3 months (which might increase a little if I really find myself enjoying the place).

I am trying to work through the myriad of different options to access my cash while abroad.

I have checked my current bank and the charges for using my debit card while abroad and they are one of the banks that have a loading fee based on a percentage of the transaction, plus they charge a fee per use (with a min/max amount).

Basically if I'm reading it correctly, say for a cash withdrawal of £1000. I will get charged 3% plus say a minimum of £2.50. (£32.50). This seemed high to me and even worse if I were to do that £1000 in 4 seperate transactions. So I started to look on the web.

I note that the Halifax Clarity is a great card to use abroad and I am looking to apply for the card to use for purchases. For which it sounds ideal.

However, I was thinking, if I used the same card for cash advances I might save money. I do understand that they will charge from the moment I withdraw cash but the annual percentage is very low (12.9%) . So even if I left a DD set up to pay off the card in full each month. I'd only get charged around 1%. I read this as for the same £1000 I'd only be charged £10.

Am I missing something or reading this wrong. It sounds odd to me that I can get better value for cash advances using a credit card than I can directly out of a current account.

NiftyDigits

Statement balance bill payment can be up to 56 days after transaction. That is closer to two months.

anqet

@Mister Deeds: yes you are correct, you're better off using the Clarity card if you pay your card in full every month rather than using a regular credit card that charges 3% of the non-sterling transaction.

However, not everyone gets the 12.9 rate on the Clarity card. I got 17.9 (and even at this rate I'm still better off using the Clarity card) because of my credit rating which apparently is not perfect (moved recently).

Mister_Deeds

Thanks for the fast responses:)

Okay, it does sound like a fabulous card. What I would probably do is on the occasions I make a cash advance I will online bank and pay it off a day or two later (if possible).

One other thing that crossed my mind was the card uses the bank rate for converting back to GBP. (which I understand to be only a good thing) but then does that mean it is cheaper to withdraw cash on this card than actually buying some currency say from the Post Office before I travel.

I want to take a lump sum with me (and the card will be used when the lump sum runs out) and looking online alot of places I can exchange money claim no commission etc but then they have different exchange rates (I assume they make their money from the difference).

What I can't find is some comparison between those rates and what a bank (or the Clarity card would charge).

Is it better to just get some cash out when I arrive at my destination with the card or not?

Also, is it better to exchange here or take a lump sum of Sterling with me and swap it at a bank there?

The permutations are driving me nuts!

NiftyDigits

Mister_Deeds wrote: »

Thanks for the fast responses:)

Okay, it does sound like a fabulous card. What I would probably do is on the occasions I make a cash advance I will online bank and pay it off a day or two later (if possible).

One other thing that crossed my mind was the card uses the bank rate for converting back to GBP. (which I understand to be only a good thing) but then does that mean it is cheaper to withdraw cash on this card than actually buying some currency say from the Post Office before I travel.

I want to take a lump sum with me (and the card will be used when the lump sum runs out) and looking online alot of places I can exchange money claim no commission etc but then they have different exchange rates (I assume they make their money from the difference).

What I can't find is some comparison between those rates and what a bank (or the Clarity card would charge).

Is it better to just get some cash out when I arrive at my destination with the card or not?

Also, is it better to exchange here or take a lump sum of Sterling with me and swap it at a bank there?

The permutations are driving me nuts!

First of all, you haven't told us where you are going. So how on earth can you expect accurate replies to your questions?
In general, it will be better to withdraw cash on arrival. If you live in Central London, you can obtain and take a small amount of cash at a good rate(just in case). But then you can just as easily obtain a Metro Bank debit card(better than the Clarity for travel).

Mister_Deeds

Thanks Nifty, I can tell you where I'm going now. I didn't think to include it (I'm not that sharp) which is why I'm here asking for advice:)

Trip will be to Hong Kong.

junglejame911

There is a lot of hype regarding the Clarity card and certainly is it one of the cheapest options for purchasing abroad. . . but to promote it as the best way to obtain foreign currency is a bit disingenuous.


Surely cash withdrawals using a credit card will adversely affect your credit rating??

Mister_Deeds

I don't know, which is why I'm here. I'm open to any suggestions of course.

I had read a snippet that did suggest that using the card for cash advances may lower credit rating but I'm unsure if that tips the balance over the advantages.

I don't think I'd need to withdraw cash that often providing they let me withdraw say £1000 at a time. I don't believe I can get that from an ATM but can you use the card within a bank (with I.D) to get a larger cash advance?

I don't want to take all the cash I need with me personally for the duration so I do need a way of getting to my money while I'm there.

Both my current bank and credit card are among the worst for use abroad so I was figuring the Clarity might be a good solution for this one trip. As I'd be able to use it for purchases and cash.

What other options do I have?

NiftyDigits

Mister_Deeds wrote: »

I don't know, which is why I'm here. I'm open to any suggestions of course.

I had read a snippet that did suggest that using the card for cash advances may lower credit rating but I'm unsure if that tips the balance over the advantages.

I don't think I'd need to withdraw cash that often providing they let me withdraw say £1000 at a time. I don't believe I can get that from an ATM but can you use the card within a bank (with I.D) to get a larger cash advance?

I don't want to take all the cash I need with me personally for the duration so I do need a way of getting to my money while I'm there.

Both my current bank and credit card are among the worst for use abroad so I was figuring the Clarity might be a good solution for this one trip. As I'd be able to use it for purchases and cash.

What other options do I have?

As indicated Metro Bank is the best(though you'll need to visit a branch to open the account. You collect your card on the spot), followed by one of the N&P Gold accounts.

Mister_Deeds

Thanks Nifty, I'm miles from London. If I could do it online I'd probably have considered it.

I've had a look at the N&P website following your post. I wouldn't meet the monthly criteria (I might be able to temporarily meet it but then I'd end up closing the account on my return). I'm happy with my current bank for home use and am a long term customer so I want to continue using them for my day to day banking.

I also online bank with them so it would be simple to pay off say the Clarity while abroad.

zagfles

If you have online access abroad then you could just pay off any cash withdrawals soon after you make them, then the interest will be trivial. You don't need to wait till the statement. Though you have to clear any purchase balance on a previous statement before you can pay a cash advance in the current statement period.

And yes it's much cheaper to withdraw cash on the Clarity than to change cash here, the Clarity will use the Mastercard rates here https://www.mastercard.com/global/currencyconversion/index.html which are practically interbank. But watch out for charging ATMs and dynamic currency conversion.