Using Cards Abroad - Halifax Clarity vs 0%

vicky225

Hi there,

I was hoping someone could give me some advice. I am headed to the USA for a few weeks and I have a halifax clarity card for spending because it has no fees.

When I have used it abroad before I have always paid it off in full every month to avoid the interest. However this time I am not going to be able to do that but I want to avoid the interest.

Should I use a different card, that has 0% interest, and just take the fees that come with using it abroad, or should I use the Halifax card abroad and when I return do a 'balance transfer' onto a 0% interest card? Or is there a better way to approach it?

I don't currently have a 0% interest card so what would be the best one for this situation?

Any help greatly appreciated!

Thanks,

Vicky

YorkshireBoy

If your Clarity card is their representative rate of 12.9% APR (is it?), then the interest will be around 1% per month. Purchases will receive up to 56 days interest free...so if no cash withdrawals there's no need to BT straight away (ie pay some off first).

The fees for using other cards abroad are circa 3%.

Balance transfers can be had for as little as 0.9%.

The above is for information. What's best for you will depend on the anticipated spend, and how long you would need to clear that spend.

vicky225

Hi Yorkshire Boy,

Thank you for your advice.

My card is 12.9% and I do not use it for cash withdrawals, I use my Caxton Card for that.

I don't anticipate spending more than £1000 on it (unless I get carried away in Vegas) on purchases.

If I could pay say £300 off within 56 days would it be worth a BT or just leaving it on the Clarity card?

Thank you again for your help!

vicky225

Oh and I think it would take maybe 4 months to clear the last £700!

dzug1

deleted .

YorkshireBoy

Spending £1K on a 0% on purchases card will cost you circa £30, but give you up to 18 months to pay it off.

Spending on Clarity and then BTing to Tesco (with the 0.9% BT fee referred to above) will cost you (£700 x 0.9% £6.30 and give you (a total of) 14 months to pay it off (56 days plus 12 months).

So we're talking about a saving of £23.70...worth taking another card out?...maybe not?

Then again, if you can pay £350 a month off Clarity you'll have interest of £700 x 1% and £350 x 1% = £10.50.

Disclaimer: all figures for illustration purposes.

guesswho2000

Nationwide Select credit card - 0% on purchases and no foreign transaction fees on spending.

You'd have to be a Nationwide current account customer (or be willing to open one at the same time).

YorkshireBoy

guesswho2000 wrote: »

Nationwide Select credit card - 0% on purchases and no foreign transaction fees on spending.

Likewise, Saga...if you're over 50.

And the Post Office card would give you 3 months 0% on purchases and no foreign loading.