Halifax Clarity abroad

swains

Hi, I'm just after some confirmation.

I have had a halifax clarity card for a while - I use it only when abroad and mainly to withdraw cash from ATM's whilst travelling.

I have just rang up Halifax to let them know the dates I will be away from for an upcoming holiday and the operator seemed quite surprised that I would be taking cash out on the card, and mentioned a daily interest rate.

While I was aware there was an interest rate, I was under the impression that taking money using the card is often better than exchanging currency beforehand as long as the payment was made on time.

Is using the Halifax Clarity abroad at ATM to withdraw cash a moneysaving tip or mistake?

Thanks, and apologies if this has been answered previously

[Deleted User]

It's a lot cheaper than paying a transaction fee. If the interest worries you then you could make a payment soon after withdrawing it, but you're talking small change.

Candyapple

swains wrote: »

I have just rang up Halifax to let them know the dates I will be away from for an upcoming holiday and the operator seemed quite surprised that I would be taking cash out on the card, and mentioned a daily interest rate.

Sounds like the employee probably thinks withdrawing cash from cc = very bad, without realising that you have a Clarity card for that specific purpose.

Using the Clarity abroad to withdraw cash is good, at most you will be paying pence in interest upon your return (speaking from experience).

SnowTiger

swains wrote: »

I have had a halifax clarity card for a while - I use it only when abroad and mainly to withdraw cash from ATM's whilst travelling.

I have just rang up Halifax to let them know the dates I will be away from for an upcoming holiday and the operator seemed quite surprised that I would be taking cash out on the card, and mentioned a daily interest rate.

[...]

Is using the Halifax Clarity abroad at ATM to withdraw cash a moneysaving tip or mistake?

Generally a tip.

One potential downside is that cash withdrawals are marked as such by the credit reference agencies. It's arguable that future lenders might see them as a negative when viewing your credit report.

I've made a few cash withdrawals using my Clarity card abroad and don't appear to have had problems obtaining credit afterwards.

Perhaps the Halifax CS rep you spoke to wasn't fully aware of the benefits of the Clarity card. In general cash withdrawals using a credit card are expensive; especially those made abroad.

I've just remembered that on the occasions I've used my Clarity card to withdraw cash abroad I've been charged a local fee. Debit card withdrawals have usually been fee free.

grumbler

swains wrote: »

... use it only when abroad and mainly to withdraw cash from ATM's whilst travelling.

... the operator seemed quite surprised that I would be taking cash out on the card,

I am surprised too.

While I was aware there was an interest rate, I was under the impression that taking money using the card is often better than exchanging currency beforehand as long as the payment was made on time.

Even better is just to pay by the card.

grumbler

SnowTiger wrote: »

I've just remembered that on the occasions I've used my Clarity card to withdraw cash abroad I've been charged a local fee. Debit card withdrawals have usually been fee free.

I don't think that local banks/ATMs differentiate between debit and credit cards when charging the fee.

zagfles

swains wrote: »

Hi, I'm just after some confirmation.

I have had a halifax clarity card for a while - I use it only when abroad and mainly to withdraw cash from ATM's whilst travelling.

I have just rang up Halifax to let them know the dates I will be away from for an upcoming holiday and the operator seemed quite surprised that I would be taking cash out on the card, and mentioned a daily interest rate.

While I was aware there was an interest rate, I was under the impression that taking money using the card is often better than exchanging currency beforehand as long as the payment was made on time.

Is using the Halifax Clarity abroad at ATM to withdraw cash a moneysaving tip or mistake?

Thanks, and apologies if this has been answered previously

There are a lot of clueless people working in bank call centres who don't understand their own products, or the competition.

The Clarity is one of the best ways of getting foreign cash, far better than changing cash or using nearly all other cards.

Pay it off when you get back. Typical cost maybe 0.5% in interest. Typical other cards charge 3%. Typical cost of changing cash about 5% (hidden in the rate, even if "commission free").

reclusive46

grumbler wrote: »

I don't think that local banks/ATMs differentiate between debit and credit cards when charging the fee.

Outside of the EU they are essentially the same thing to ATMs and POS machines in the way they are processed and the way they are charged.

SnowTiger

grumbler wrote: »

I don't think that local banks/ATMs differentiate between debit and credit cards when charging the fee.

Here in the Philippines I can withdraw cash free using my N&P debit card, but I'm charged P200 (about £3) to make a withdrawal by credit card.

BlondBoy

SnowTiger wrote: »

One potential downside is that cash withdrawals are marked as such by the credit reference agencies. It's arguable that future lenders might see them as a negative when viewing your credit report.

I was away for a month around Christmas and New Year and made numerous cash withdrawals with Halifax Clarity.

Noticed the other day that within that statement period, the number of cash withdrawals recorded with Experian for that statement period was 0.

So maybe - and I'm guessing here - Halifax doesn't report overseas cash withdrawals to the CRAs on the Clarity card?

YorkshireBoy

BlondBoy wrote: »

I was away for a month around Christmas and New Year and made numerous cash withdrawals with Halifax Clarity.

Noticed the other day that within that statement period, the number of cash withdrawals recorded with Experian for that statement period was 0.

So maybe - and I'm guessing here - Halifax doesn't report overseas cash withdrawals to the CRAs on the Clarity card?

...or they report a month in arrears? Have a look next time you order a report.