Halifax Clarity - Humour me!

purplestar133

Hi everyone,

I've never used a credit card abroad before and have applied for a Halifax Clarity card for overseas spending.

I an inexperienced traveller and credit card user, but I am a 'moneysaver'!

I've read the terms and conditions but could do with just having how it works spelt out for me if anyone has the patience?

This is how I understand it:

- if I spend on the card in for example, a restaurant, an exchange rate is used but no extra charge (load?) is applied. Then if I pay the full balance after my statement there is no interest.

- if I withdraw cash from an ATM an exchange rate is used but there is no extra charge, but I am charged interest from the date I make the withdrawal, even if I pay in full on time?

Is this correct?

How does spending this way compare to changing pounds to euros and spending cash? Does it 'cost' more? Do bureaux de change factor in fees etc to the exchange rates they offer?

I'm going to Ibiza and am planning on taking cash as well as the credit card as I'm a bit worried not everyone will accept cards.

Thanks for your patience!

YorkshireBoy

purplestar133 wrote: »

- if I spend on the card in for example, a restaurant, an exchange rate is used but no extra charge (load?) is applied. Then if I pay the full balance after my statement there is no interest.

- if I withdraw cash from an ATM an exchange rate is used but there is no extra charge, but I am charged interest from the date I make the withdrawal, even if I pay in full on time?

Is this correct?

Yes to both.

How does spending this way compare to changing pounds to euros and spending cash? Does it 'cost' more? Do bureaux de change factor in fees etc to the exchange rates they offer?

You'll typically get a 2-3% (maybe more!) worse exchange rate by using high street bureaux de change.

Have you read the travel money section on the main site? Might be a good place to start...

http://www.moneysavingexpert.com/travel/cheap-travel-money

opinions4u

You're bang on in your thinking.

Always have a fall back card available too, as well as cash to see you through to the next ATM.

anotheruser

I took some cash but used the card for most of my purchases as it was easier and a lot safer than carrying €400 around in cash. Also it's easier to purchase things so you don't end up with loads of Euros to bring back, much of which will be in coins that you can't change back.

purplestar133

YorkshireBoy wrote: »

Yes to both.You'll typically get a 2-3% (maybe more!) worse exchange rate by using high street bureaux de change.

Have you read the travel money section on the main site? Might be a good place to start...

http://www.moneysavingexpert.com/travel/cheap-travel-money

I have looked at that, thanks, though it has been a while so just went back for a refresher.

I used the travel money maximiser tool and the best rate yesterday was 488.33 euros for £425. Only £175 of that is for me.

anotheruser wrote: »

I took some cash but used the card for most of my purchases as it was easier and a lot safer than carrying €400 around in cash. Also it's easier to purchase things so you don't end up with loads of Euros to bring back, much of which will be in coins that you can't change back.

Now I'm thinking of taking about £100 in cash and trying to use the card as much as possible. If I need cash, I can withdraw it and it doesn't matter how many withdrawals I make, as there's no transaction fee, but I will still pay interest from the day of the withdrawal won't I?

I've had a very quick glance at some of the other threads discussing this and someone mentioned they paid their balance as soon as they got back and the interest wasn't very much. The rate is 12.9%, would it be cheaper to withdraw abroad and pay the interest than exhanging in a bureaux de change here? Sorry if the answer is obvious...:o

YorkshireBoy

purplestar133 wrote: »

Now I'm thinking of taking about £100 in cash and trying to use the card as much as possible. If I need cash, I can withdraw it and it doesn't matter how many withdrawals I make, as there's no transaction fee, but I will still pay interest from the day of the withdrawal won't I?

Correct.

I've had a very quick glance at some of the other threads discussing this and someone mentioned they paid their balance as soon as they got back and the interest wasn't very much. The rate is 12.9%, would it be cheaper to withdraw abroad and pay the interest than exhanging in a bureaux de change here? Sorry if the answer is obvious...:o

12.9% is the annual rate, so that's around 1% per month. Settle in 2 weeks and the interest is around 0.5%.

So you're comparing 0.5% with the aforementioned 3%.

Clarity wins hands down...but don't forget your back up card as suggested by o4u above.

purplestar133

YorkshireBoy wrote: »

Correct.12.9% is the annual rate, so that's around 1% per month. Settle in 2 weeks and the interest is around 0.5%.

So you're comparing 0.5% with the aforementioned 3%.

Clarity wins hands down...but don't forget your back up card as suggested by o4u above.

I'm only going for a week so that makes it around 0.25%?

I suppose the back up card would need to be a good overseas card? I've only got the Clarity for overseas spending. Other than that it's my debit card or an Amex Credit card or Lloyds Mastercard.

Is the backup in case my provider stops me using Clarity abroad?

opinions4u

purplestar133 wrote: »

Is the backup in case my provider stops me using Clarity abroad?

Or systems fail at the bank / retailer.

My backup cards all have c3% charges on them. I've never had to use them but that "just in case" moment of being stuck overseas with no cash makes it a sensible contingency. I'll pay 3% in a crisis. I won't pay it for normal stuff when I don't have to pay it.

purplestar133

opinions4u wrote: »

Or systems fail at the bank / retailer.

My backup cards all have c3% charges on them. I've never had to use them but that "just in case" moment of being stuck overseas with no cash makes it a sensible contingency. I'll pay 3% in a crisis. I won't pay it for normal stuff when I don't have to pay it.

I'll look into the rates on my other cards then and decide which is best to take. Thanks!

wwfc_2

Have just returned from Orlando

I took $750 with me in cash and the Clarity, in reality I didn't need to take any cash, didn't have any problems using the card at any location, even for purchases or a couple of dollars.

It worked out a great way of spending, I worked it out that I was getting a rate of about $1.54 usd to the pound, where as if id have took all money the rate was about $1.47 usd to the pound before we left.

Also remember if it gives you an option of paying in local currency or £ go for the local currency.

Also ring Halifax and let them know you will be abroad between the dates you are going, they will put a note on your file and hopefully you will be less likely to get declined.

purplestar133

opinions4u wrote: »

Or systems fail at the bank / retailer.

My backup cards all have c3% charges on them. I've never had to use them but that "just in case" moment of being stuck overseas with no cash makes it a sensible contingency. I'll pay 3% in a crisis. I won't pay it for normal stuff when I don't have to pay it.

This leads me to another question! If I happen to spend on one of these back up cards, which would be a 'bog standard overseas spending card' according to the MSE guide, let's say American Express as an example...I would pay the 'load' on the exchange rate and if I repaid in full after my statement there would be no interest?

The load for this card is 2.99% so, if the above is correct, wouldn't I be paying a similar amount if I exchanged the same amount at a bureaux de change, about 3% as Yorkshire Boy says?