Halifax clarity card, if u keep in credit can they charge interest

paul2louise

I have applied for a clarity card. I know credit cards don't work this way but if I wanted to load the card with credit before I use it can they still charge me interest even if the account is in credit. I tried to ask this of the customer services lady and she said they can still charge interest.

If I put £100 onto the card athen withdraw equivalent of £50 how can they charge interest if I am still £50 in credit.

opinions4u

They can't charge you interest on a credit balance.

Putting the credit card in to credit balance is a breach of the T&Cs (and runs the risk of triggering fraud / money laundering detection systems).

paul2louise

So you are not allowed to do this. What about if I select pay my balance in full. I suppose they can charge interest from the day I withdraw to the day they take the payment.

opinions4u

paul2louise wrote: »

So you are not allowed to do this. What about if I select pay my balance in full. I suppose they can charge interest from the day I withdraw to the day they take the payment.

On cash withdrawals they will charge from the day of transaction.

But you could always pay the debt off sooner by Faster Payment to minimise any charge.

izools

If you pay your bill in full each month,

You won't pay any interest on purchases

And you will pay interest on cash advances from the day the advance is made, until the day it is repaid.

This works out to be 0.035% of the amount withdrawn each day, assuming you receive the typical 12.9% APR.

paul2louise

opinions4u wrote: »

On cash withdrawals they will charge from the day of transaction.

But you could always pay the debt off sooner by Faster Payment to minimise any charge.

This is a bit of hassle while on holiday. Just get some euros before I go, which is what I was going to do before I saw this card. We are all inclusive, I just wanted the option of getting a bit of cash if I needed it.

lisyloo

The interest is very small (assuming you have the standard 12.9 interest rate).
Why not use the card on holiday and pay it off when you return.
For a 2 week holiday the interest is about 0.5% and almost certainly CHEAPER than the commission you get charged when you buy euros.
Some place might say they are "commission free" but they will be making money by giving you a poor exchange rate.
It's almost certainly cheaper to use the card but do CHECK your interest rate because whilst most of us have the same (12.9%) yours might be more.

Why such an issue with paying a little interest but no problem with paying a lot more to buy euros?
Doesn't makes sense.

opinions4u

paul2louise wrote: »

This is a bit of hassle while on holiday. Just get some euros before I go, which is what I was going to do before I saw this card. We are all inclusive, I just wanted the option of getting a bit of cash if I needed it.

The exchange rate on the card will be 3%-4% better.

The interest a cash withdrawal will accrue in two weeks will be less than 1%.

paul2louise

I hadn't realised it was a low as that. I have always been wary of accruing interest. I always pay my balance off in full on my cards.

Well I have it if I need it. You can order some euros from the card before you go. May look at that option as well, depends if cash machines are available where we are staying. We are in the the middle of nowhere

lisyloo

I hadn't realised it was a low as that.

Most cards are 12.9% but you need to check your personal rate.
You only get charged for the days you borrow.

We are in the the middle of nowhere

If you are flying to your destination then there is a good chance that there will be a cash machine at your arrival airport.
It's a very good idea to have alternatives.
Some Euros is definitely a good idea and probably cheaper to get here.

With Halifax it's also a good idea to call them and tell them where you are going - less chance of your card getting blocked.

opinions4u

Final thought, just use it for purchases.

I'm yet to draw cash from an ATM with Clarity.