Halifax Clarity

warnski

Hi everybody,

I got this card to use abroad as recommended by MSE, used it on holiday in Crete and have never used it since.

My first statement had an interest fee which I wasn't expecting (especially as it was very first statement), but I paid the balance in full including the interest.

The first statement also had my £5 reward which was a bonus obviously, and I left this in credit.

Then on my second statement I've again been charged interest, even though I was in credit and had no new transactions. So my £5 in credit is now £3.80

Does anyone know what I'm being charged interest on?

Thanks in advance

reclusive46

Did you make any cash withdrawals? You still get charged interest on cash withdrawals unless you make a payment the day the withdrawal hits the account.

warnski

Thanks for the response...

I thought no-fee cash withdrawals overseas was a major perk of this card?

And that still doesn't explain interest on the second statement when balance had been cleared and no new transactions added?

CLAPTON

'no fee' doesn't mean 'no interest'


the interest is charged from the day of withdrawal to the day of payment

on your first statement the interest shown would be to the statement date only.

so on your second statement the interest is from the first statement date to the day you actually paid in full.
this is often called 'trailing interest


all CC work this way.

ade1982

I'm thinking of getting this card to go abroad also.

So you can use it to purchase something on the card without incurring interest, but if you withdraw Euros from the cash machine you get charged on it?

CLAPTON

ade1982 wrote: »

I'm thinking of getting this card to go abroad also.

So you can use it to purchase something on the card without incurring interest, but if you withdraw Euros from the cash machine you get charged on it?

the 'value' of the card is that you don't get charged a 'foreign currency' mark up (often 3% of the value)
however you do get charged interest on cash withdrawals but no fees

opinions4u

The interest is around 3p per day for each £100 withdrawn in cash. 6p if you're on the highest rate.

It's much cheaper than a typical alternative card that will charge you £3 per £100 on top of the interest.

gardner1

opinions4u wrote: »

The interest is around 3p per day for each £100 withdrawn in cash. 6p if you're on the highest rate.

It's much cheaper than a typical alternative card that will charge you £3 per £100 on top of the interest.

used mine last 2 years in Malta and Italy and both times total interest has been about £3(lowest % rate) as mainly draw 400e at a time 3 or 4 times during 2 week break
at end of the day £3 total interest for 2 week holiday including 3-4 cash withdrawals at best conversion rate possible is great

ollyc

Hi all, I have a quick question on cash withdrawals with the Clarity card.

We're off to The States and unsure of how much cash we will need. If we pre load the credit card with cash so we have a healthy credit and make a cash withdrawal would this stop any interest payments or would we have to make an additional payment to cover the withdrawal?

I would assume that no interest would be charged since we are already in credit but I've made bad assumptions in the past!

I realise any interest payments will be less than any other form of cash withdrawal and perhaps any exchange rates prior to traveling but keen on saving as much money as possible.

Many thanks,
Olly

Edit - just read that its more than likely against their Ts&Cs and will probably result in my card being stopped.

Probably best just to withdraw and transfer the money on line as we go to keep the balance low.

Will the balance be paid off in the order in which we spend or will all cash withdrawals be cleared last to gain more interest for the bank?

Sorry for all the questions,

Thanks,
Olly

opinions4u

Preloading would avoid interest being charged but breaches the T&Cs and runs the risk of triggering various AML / fraud systems - which would leave your card frozen.

I'd just clear cash withdrawals online a couple of days after making them. Tiny cost.

ollyc

opinions4u wrote: »

Preloading would avoid interest being charged but breaches the T&Cs and runs the risk of triggering various AML / fraud systems - which would leave your card frozen.

I'd just clear cash withdrawals online a couple of days after making them. Tiny cost.

Thank you very much, I think I was editing as you were replying. Will just transfer on line as we go.