Going abroad - Halifax Clarity or Post Office Credit Card?

McCreary

Hello all,

Wondered if you could tell me which is the best card for spending abroad out of the Halifax Clarity Credit Card and the Post Office Credit Card.

If I paid off the balance in full each month with the Clarity card would incur no interest?

Thanks I advance

eskbanker

According to the MSE article on this, it's the Clarity.

McCreary

eskbanker wrote: »

According to the MSE article on this, it's the Clarity.

Thought the Post Office Credit Card would be higher up in the list!

I'm slightly confused at the way the Clarity works. Are you charged interested as soon as you pay for something as opposed to on a monthly basis?

BlondBoy

If you buy something on the Clarity, you still get the usual interest-free period, like other cards. So 20 days or so after the statement date is when any interest starts being calculated from for purchases.

But if you withdraw cash on the Clarity, you're charged interest from the time of withdrawal until you pay back the cash withdrawal amount (in simple terms).

BUT you don't get charged any foreign loading fee for using the Clarity to withdraw cash overseas - you get the Mastercard rate, which is more often than not better than anything you'd get from any other money-changing service.

Best deal is the Clarity for both overseas purchases and cash withdrawals.

If you're thinking of only making purchases, Clarity and Post Office are the same - as long as you pay the balance in full each month.

chattychappy

BlondBoy wrote: »

Best deal is the Clarity for both overseas purchases and cash withdrawals.

Best deal is use both. Put cash onto Clarity. Pay off as soon as the transaction goes through. Put purchases onto PO and pay off shortly before the due-by date to maximise the interest free period.

I would (and do) carry both (as well as others). Cards often fail overseas.

labp04

Don't want to hijack this thread and I agree with the responses so far. However, can anyone point me in the direction of Halifax's conditions or rules re cash withdrawals using the Clarity Card? I think I know that there are some; had understood a limit equal to 50% of available balance; and a visit to my local branch elicited a group of staffs' thoughts/collective wisdom saying the limit is 90% of available balance. Unfortunately, none of the staff could direct me to the written word saying this so any guidance would be good.

chattychappy

labp04 wrote: »

Don't want to hijack this thread and I agree with the responses so far. However, can anyone point me in the direction of Halifax's conditions or rules re cash withdrawals using the Clarity Card? I think I know that there are some; had understood a limit equal to 50% of available balance; and a visit to my local branch elicited a group of staffs' thoughts/collective wisdom saying the limit is 90% of available balance.

From:
http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

The T+Cs give them discretion:

15.4 We may refuse to carry out a Transaction or to allow you to make a payment into your account (as appropriate) if: you have exceeded a limit which we have applied to your account or in relation to the Transaction (such as a daily limit on Cash Withdrawals, if we apply one); [emphasis added]

So they can apply any number of limits to the account.

The summary box gives some specifics. See http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/ and click "summary box". Under credit limit, it says: "Minimum credit limit £500. Your cash limit is 50% of your actual limit."

labp04 wrote: »

Unfortunately, none of the staff could direct me to the written word saying this so any guidance would be good.

Not surprising. Poor management. If staff can't answer with authority, they need some backup so that they get hold of the information.

McCreary

Thanks everyone - I already have a Post Office Credit Card but bank with Halifax but so that's why I was thinking of changing to the Clarity. I never withdraw cash using a credit card.

So best to stick with the Post Office Credit Card?

zagfles

McCreary wrote: »

Thanks everyone - I already have a Post Office Credit Card but bank with Halifax but so that's why I was thinking of changing to the Clarity. I never withdraw cash using a credit card.

So best to stick with the Post Office Credit Card?

Get the Clarity as well - it's always best to have at least 2 good cards in case one gets blocked.

The_Boss

BlondBoy wrote: »

If you buy something on the Clarity, you still get the usual interest-free period, like other cards. So 20 days or so after the statement date is when any interest starts being calculated from for purchases.

But if you withdraw cash on the Clarity, you're charged interest from the time of withdrawal until you pay back the cash withdrawal amount (in simple terms).

BUT you don't get charged any foreign loading fee for using the Clarity to withdraw cash overseas - you get the Mastercard rate, which is more often than not better than anything you'd get from any other money-changing service.

Best deal is the Clarity for both overseas purchases and cash withdrawals.

If you're thinking of only making purchases, Clarity and Post Office are the same - as long as you pay the balance in full each month.

I'm a bit confused by this and the MSE article.

My Clarity statement date is the 7th of each month. On 11th October I'm off on holiday for two weeks. So if I withdraw £300 in Eqyptian currency while abroad, will I be charged interest on it with immediate effect, which will be added to my November statement, or will I only be charged interest if I don't repay the amount I withdrew by my payment due date for my November statement?

zagfles

The_Boss wrote: »

I'm a bit confused by this and the MSE article.

My Clarity statement date is the 7th of each month. On 11th October I'm off on holiday for two weeks. So if I withdraw £300 in Eqyptian currency while abroad, will I be charged interest on it with immediate effect, which will be added to my November statement, or will I only be charged interest if I don't repay the amount I withdrew by my payment due date for my November statement?

You will always pay interest on cash. The trick is to pay it off as soon as you get back to minimise interest, don't wait for the statement.

The simple way is to check your balance online as soon as you get back and pay the lot off.

The complicated way is to work out the value of your cash advances and just pay them plus the full previous statement balance off, then you'll still get the interest free period on purchases.

Some people pay cash advances off while abroad but personally I've got better things to do on holiday. For a 2 week holiday the interest will be trivial, and far less in charges than traditional ways of getting foreign cash. £300 for 2 weeks will cost about £1.50 in interest if you've got the 12.9% APR. Or less if you eg draw half of it at the start and half after a week there.

Getting £300 on the UK high street will probably cost about £15 even from places that claim to be "commission free" (the commission is hidden in the rip-off rate).