Halifax Clarity credit card v FairFX cash card

jicms

I was planning to apply for a FairFX US$ prepaid card but wonder if the Halifax Clarity credit card would work out cheaper. FairFX's exchange rate is $1.53/£ and Halifax are quoting $1.56/£. However I'm wondering if the interest charges on the Halifax Clarity on the unpaid balance would outweigh the advantage of the better exchange rate. Although FairFX don't charge for withdrawals, I believe I would be charged for withdrawing cash by the US ATMs.

dzug1

Not a question that is really answerable with any great precision - but very roughly....

There's a 2% difference in exchange rates
there's normally a fee to buy the fairfx
Clarity charge 1% a month on cash advances

which suggest the Clarity is a better bet - if you are accepted for it

visidigi

dzug1 wrote: »

Not a question that is really answerable with any great precision - but very roughly....

There's a 2% difference in exchange rates
there's normally a fee to buy the fairfx
Clarity charge 1% a month on cash advances

which suggest the Clarity is a better bet - if you are accepted for it

FairFX is free through cashback with a suitable top up, then you get £5 cashback on the application too.

FairFX allows you to lock in the rate, clarity is based on the rate on the day/time of transaction. Thats the best way to look at it...

NiftyDigits

jicms wrote: »

I was planning to apply for a FairFX US$ prepaid card but wonder if the Halifax Clarity credit card would work out cheaper. FairFX's exchange rate is $1.53/£ and Halifax are quoting $1.56/£. However I'm wondering if the interest charges on the Halifax Clarity on the unpaid balance would outweigh the advantage of the better exchange rate. Although FairFX don't charge for withdrawals, I believe I would be charged for withdrawing cash by the US ATMs.

International ATM Transaction Fee: €1.50 for the Euro card and $2.00 for the US Dollar card and £1 for the £ Anywhere Card (some ATMs may apply an additional surcharge)

Seems you didn't do proper research...

mcfisco

We use a FarFX € card and generally take out €200 every other day so the charges amount to 0.75% for ATM withdrawals for us, I've not come across an ATM that charges extra but I only tend to use bank ones anyway.

Given the decent exchange rate, I don't find that too bad a deal

NiftyDigits

mcfisco wrote: »

We use a FarFX € card and generally take out €200 every other day so the charges amount to 0.75% for ATM withdrawals for us, I've not come across an ATM that charges extra but I only tend to use bank ones anyway.

Given the decent exchange rate, I don't find that too bad a deal

You haven't factored in the cost of buying the Euros in the first place.

Current Mastercard rate is 1.17€. Fairfx Euro card rate is 1.1425€.

So you are already down by 2.35% before you even add the the 0.75%.

mcfisco

NiftyDigits wrote: »

You haven't factored in the cost of buying the Euros in the first place.

Current Mastercard rate is 1.17€. Fairfx Euro card rate is 1.1425€.

So you are already down by 2.35% before you even add the the 0.75%.

True, but we bought £5K worth back last December ish
IIRC we got around 1.21

We're due to top up again in the next couple of months so just waiting till I feel it's good.
Not very scientific but we've done OK most years

NiftyDigits

mcfisco wrote: »

True, but we bought £5K worth back last December ish
IIRC we got around 1.21

We're due to top up again in the next couple of months so just waiting till I feel it's good.
Not very scientific but we've done OK most years

Not a bad move, but of course you know that your case is most unusual and certainly worth a mention when you are giving advice on a currency card.

jicms

I've realised my new Nationwide FlexPlus debit card will be the best deal for cash withdrawals in the US.

NiftyDigits

jicms wrote: »

I've realised my new Nationwide FlexPlus debit card will be the best deal for cash withdrawals in the US.

Take a Mastercard option as a fallback.

mcfisco

NiftyDigits wrote: »

Not a bad move, but of course you know that your case is most unusual and certainly worth a mention when you are giving advice on a currency card.

I wasn't giving advice, it was our experiences of using a FairFX card
It had already been mentioned that the rate was locked in with a pre-paid card and the rate we bought at is irrelevant.

One other thing I like about using a pre-paid over a credit card is that you don't have to to be concious of payment dates to avoid interest.
I'm constantly missing paying on the card I use for business and end up picking up extra fees and interest.
I'm happy to keep using the pre-paid for leisure time, you may be able to scrape the odd few cents here and there by having the right card and making sure you go online to pay on time etc. but I can't be bothered on holiday just to save a few coppers.