Best credit/debit card abroad

claire_pinkprincess

Hi,

Just after some advice on credit/debit cards and using them abroad if anyone can help. Basically I've never had a credit card before but considering getting the clarity (Halifax) card as going to America for 3 weeks in the summer. I don't really understand how it works with the interest as it states interest is charged as soon as you withdraw the money? I'm probably going to spend/withdraw around £1500-£2500 does it make a difference if this is paid on the card (like a debit card) or is it better to just withdraw cash?

Another option I've looked at is the fairfx pre paid debit card. It charges 2 dollars every time you withdraw but I think it can be used as a debit card for free. Has anyone used this before?

I've never had a credit card before and find the prospect of spending someone else's money quite daunting (although I do have the full amount I plan to spend saved so could transfer it straight away). I went travelling a couple of years ago and naively just used my debit card, when I got home and checked all of the charges I could have gone on another holiday!

If anyone has any other suggestions they would be hugely appreciated.

Thanks in advance.

Claire

grumbler

MSE article: Your Card's Overseas Charges

claire_pinkprincess

Hi,

Thank you for your reply. I spent all morning looking through the different cards on the 'your card's overseas charges' page and found I still didn't really have any answers to the questions above. It was great to give me a heads up on the Halifax clarity card and fairfx card but still not sure from when do you get charged interest and is it for withdrawals and purchases or just one.

Claire

guesswho2000

On the FairFx, you get charged interest on nothing, since it's your money.

On the Halifax Clarity, you get charged interest on cash from day 1, approx 1% per full month the money is owed - this is less than the 2.75% or more you'd lose through exchange rate markups at banks or by using a standard credit card.

The Clarity has the same interest free period on purchases as most cards do if cleared in full by the due date on the statement.

claire_pinkprincess

guesswho2000 wrote: »

On the FairFx, you get charged interest on nothing, since it's your money.

On the Halifax Clarity, you get charged interest on cash from day 1, approx 1% per full month the money is owed - this is less than the 2.75% or more you'd lose through exchange rate markups at banks or by using a standard credit card.

The Clarity has the same interest free period on purchases as most cards do if cleared in full by the due date on the statement.

Guess who- thank you for your reply. That's what I was struggling to find info on. So basically I'll be better getting the clarity card? Do you know if its withdrawals and purchases or just withdrawals?
Thanks again

guesswho2000

claire_pinkprincess wrote: »

Guess who- thank you for your reply. That's what I was struggling to find info on. So basically I'll be better getting the clarity card? Do you know if its withdrawals and purchases or just withdrawals?
Thanks again

No problem - you'll almost certainly be better off with the Clarity under all circumstances.

Not sure what you're asking by whether it's purchases and withdrawals? If you mean whether the Clarity will be better for both, it will.

Afaik, the Clarity is the only credit card currently available worth using for foreign cash withdrawals - perfect exchange rate and no cash advance fee. There are a few debit cards (N&P Gold, Nationwide FlexPlus, Metrobank and Cumberland Building Society).

For purchases, credit card wise, Clarity, Nationwide Select, Post Office Platinum, Aqua Advance are the ones currently available which are fee free on purchases - all of these will give you the interest free period (and some offer an intro period - 3 month 0% with post office, 12 months with Nationwide Select).

The debit cards mentioned above for cash, also offer this benefit - except the Nationwide FlexPlus, which charges for purchases, but not cash, for some reason.

Of course, using a specialist debit card will mean you're not paying any interest at all (providing you're in credit) - but, you're at risk if your card is compromised - they have access to your bank account. For me, I use the Clarity for cash - if a thief/fraudster gets hold of the details, it's the bank's money they're ripping off, not mine (you'd get it sorted in the end, but it's a risk I don't take).

I wouldn't bother with prepaid cards myself - you normally lose out somewhere (poor exchange rate loading the card or fees incorporated in somewhere) - they have to cover their costs of operating the cards I guess!

EDIT: Worth a mention I suppose, for overseas cash advances - Barclaycard (most, but not all of them) - 2.99% fee with no minimum on foreign cash advances, with no interest charged if the balance is cleared in full. This is compared to a standard CC charging 3% (min £3) cash fee+2.75% forex fee+interest from day 1 until paid in full.

richardmk

In the US many of the ATMs will add on a $3 charge, so even if you use a card that is transaction free the fee will be included in the withdrawal...

claire_pinkprincess

guesswho2000 wrote: »

On the FairFx, you get charged interest on nothing, since it's your money.

On the Halifax Clarity, you get charged interest on cash from day 1, approx 1% per full month the money is owed - this is less than the 2.75% or more you'd lose through exchange rate markups at banks or by using a standard credit card.

The Clarity has the same interest free period on purchases as most cards do if cleared in full by the due date on the statement.

guesswho2000 wrote: »

No problem - you'll almost certainly be better off with the Clarity under all circumstances.

Not sure what you're asking by whether it's purchases and withdrawals? If you mean whether the Clarity will be better for both, it will.

Afaik, the Clarity is the only credit card currently available worth using for foreign cash withdrawals - perfect exchange rate and no cash advance fee. There are a few debit cards (N&P Gold, Nationwide FlexPlus, Metrobank and Cumberland Building Society).

For purchases, credit card wise, Clarity, Nationwide Select, Post Office Platinum, Aqua Advance are the ones currently available which are fee free on purchases - all of these will give you the interest free period (and some offer an intro period - 3 month 0% with post office, 12 months with Nationwide Select).

The debit cards mentioned above for cash, also offer this benefit - except the Nationwide FlexPlus, which charges for purchases, but not cash, for some reason.

Of course, using a specialist debit card will mean you're not paying any interest at all (providing you're in credit) - but, you're at risk if your card is compromised - they have access to your bank account. For me, I use the Clarity for cash - if a thief/fraudster gets hold of the details, it's the bank's money they're ripping off, not mine (you'd get it sorted in the end, but it's a risk I don't take).

I wouldn't bother with prepaid cards myself - you normally lose out somewhere (poor exchange rate loading the card or fees incorporated in somewhere) - they have to cover their costs of operating the cards I guess!

I meant is it still free to withdraw money from an ATM in America and to use it for paying for items in a shop abroad (like a debit card). Sorry I didn't explain myself very well.

Thank you again for your reply; its really helped me decide. I think the words 'credit card' scared me, but as I've got the funds to pay it off when I get back then I think I'm going to go for this one.

guesswho2000

claire_pinkprincess wrote: »

I meant is it still free to withdraw money from an ATM in America and to use it for paying for items in a shop abroad (like a debit card). Sorry I didn't explain myself very well.

Thank you again for your reply; its really helped me decide. I think the words 'credit card' scared me, but as I've got the funds to pay it off when I get back then I think I'm going to go for this one.

Yes, it'll be free to use in ATMs and in shops, as in Halifax won't charge you - as richardmk says, the ATM might levy its own fee, as might a retailer I suppose, though these will be made clear to you before you're charged, so you can choose to go elsewhere.

However, if all ATMs charge a fee, then with another card you'd be charged that fee on top of the issuers fee - in short, you'll still be better off with the Clarity

1424keith

I have a Santander Zero current account, is this account still good to withdraw cash from atms abroad especially in the us?

Kaspian

If you have a poor-average credit rating, the Vanquis CC has no fees for overseas use.