Halifax Clarity Credit Card for GBP - USD

Schmutz_2

I am going to America for 24 days - touring around a lot and I have around £4000 saved for Hotel fees and spending money. I have booked hotels online but I'm required to pay on the day, at the hotel.

I'm looking at the following options and the latter I'm not experienced with.

A) go somewhere like Debenhams or Post office to exchange it all into USD.

Halifax Clarity Card

I have a few questions if you don't mind helping please! I've never used a credit card before.

1) Is there a daily usage limit? Can I go into a hotel and expect to pay up £1000s using this card without problems?

2) Whats the best way to minimize interest? I have never set up a direct debit.

3) Can I use internet banking to pay off what I borrow straight away?

I'm with Natwest, and I'll have internet on my phone with access to the banking apps when I'm in the US.

YorkshireBoy

If you've never had a credit card before, don't build your hopes up with Clarity...both in terms of acceptance and useful credit limit.

To your questions:

1. No daily limit for purchases, other than your credit limit. Letting them know you're going overseas would be a good idea.

2. Don't withdraw any more cash than is necessary, ie pay as much as you can on the card (in restaurants etc). If you do withdraw cash, repay as soon as you can. That said, the interest will be around 3p to 5.5p per day per £100 withdrawn...so should be no more than a few quid over the course of the 24 days, especially if you pay by card wherever you can. For example, if you manage to get the 12.9% rate, £1,000 withdrawn linearly over the 24 days will cost you just over £4 in interest if you settle immediately on your return to the UK.

3. Yes.

There's generally 4 or 5 new threads on Halifax Clarity each week, so if you search the forums (search box top right of your screen) you'll get more info.

A couple of final points:

You'll have a cash limit on the card, and this will almost certainly be 50% of your credit limit.

You'll be limited to £500 per day from an ATM.

Schmutz_2

YorkshireBoy wrote: »

If you've never had a credit card before, don't build your hopes up with Clarity...both in terms of acceptance and useful credit limit.

To your questions:

1. No daily limit for purchases, other than your credit limit. Letting them know you're going overseas would be a good idea.

2. Don't withdraw any more cash than is necessary, ie pay as much as you can on the card (in restaurants etc). If you do withdraw cash, repay as soon as you can. That said, the interest will be around 3p to 5.5p per day per £100 withdrawn...so should be no more than a few quid over the course of the 24 days, especially if you pay by card wherever you can. For example, if you manage to get the 12.9% rate, £1,000 withdrawn linearly over the 24 days will cost you just over £4 in interest if you settle immediately on your return to the UK.

3. Yes.

There's generally 4 or 5 new threads on Halifax Clarity each week, so if you search the forums (search box top right of your screen) you'll get more info.

A couple of final points:

You'll have a cash limit on the card, and this will almost certainly be 50% of your credit limit.

You'll be limited to £500 per day from an ATM.

Thanks for the information it answers everything I needed to know. I'll put in an application and see what happens. I've read through the other threads on the Clarity Card before posting - good information there too.

Happychappy

I use the Clarity card around four times a years, I have the limit put up to cover all the expected costs and then log on every couple of days and pay it off with the linked account, this then clears the total within 24 hours, and the limit starts again, end result is I pay hardly any interest.

Clearly you need to have sufficient funds in your linked account, this isn't a way to print money, just save on interest rates, also the MasterCard International exchange rates are really good.

Lilyrosetta

Best card by far to use abroad ....no charge ATMs ....best rate of exchange on currencies ..
So pleased ,just don't change Halifax ..l
I may be bringing my current account to you ...


XXXXX....

lisyloo

In the US you'll probably get charged by the ATM provider.
You won't get charged by Halifax but it will be the ATM provider in the US.

Credit cards are very widely accepted in the US - in restaurants, hotels and shops.
Just like here you should only need cash for incidentals e.g. drinks, magazines etc.

Schmutz_2

Just followed through Halifax Clarity application, requesting a limit of £4000, and got

"829003 : Sorry, we can't proceed with your application at the moment. Please try again tomorrow. It’s useful to know that your credit rating has not been affected by this application."

Maybe because I never applied for a credit card before... But seems more like a technical glitch?

Schmutz_2

Happychappy wrote: »

I use the Clarity card around four times a years, I have the limit put up to cover all the expected costs and then log on every couple of days and pay it off with the linked account, this then clears the total within 24 hours, and the limit starts again, end result is I pay hardly any interest.

Clearly you need to have sufficient funds in your linked account, this isn't a way to print money, just save on interest rates, also the MasterCard International exchange rates are really good.

"linked account"

I am really new to this, so I guess that would be my Natwest (main bank) I'd just have that current account linked up and the payments can be made to clear the Halifax credit card when I need - via online banking when I'm out in US.

Schmutz_2

lisyloo wrote: »

In the US you'll probably get charged by the ATM provider.
You won't get charged by Halifax but it will be the ATM provider in the US.

Credit cards are very widely accepted in the US - in restaurants, hotels and shops.
Just like here you should only need cash for incidentals e.g. drinks, magazines etc.

I'd look to use the Clarity card whenever possible - any idea if that's possible for transport? (taxis/meto). The charge for ATMs might be something I'll need to deal with. Will I still be better off paying an ATM fee (supposing I withdraw £500+ worth of $'s in one go) - opposed to going to local exchange like post office or debenhams?

lisyloo

any idea if that's possible for transport? (taxis/meto)

Sorry can't answer that.
I would expect it to be like here where most of the shops, restaurants, hotels, car hire etc. take cards, but you need cash for transport, drinks, market stalls and smaller retailers/restaurants and small local tour companies.

The charge for ATMs might be something I'll need to deal with.

Well if you want to use the ATM then there isn't really a choice although if you take out bigger sums it can work out better.
So for example let's say the min charge is £1.50 then you might be better off taking £200 rather than £100, although it depends on a number of factors.
How much do you need? How comfortable are you carrying cash? Is there an ATM in the hotel lobby where you can easily nip to the room and put some in the safe and carry a smaller amount? Do you have a decent carrying system? My husband has a soft wallet that goes inside his clothing attached to a belt loop by a chain. It's a trade-off between charges and safety but remember you don't need to carry all your cash and cards with you everyday. Most hotels have safes - usually in the room.
Personally I'd want at least enough money for 3 or 4 days and take what we need and leave the rest in the hotel safe.

Will I still be better off paying an ATM fee (supposing I withdraw £500+ worth of $'s in one go) - opposed to going to local exchange like post office or debenhams?

Almost certainly.

Schmutz_2

lisyloo wrote: »

Sorry can't answer that.
I would expect it to be like here where most of the shops, restaurants, hotels, car hire etc. take cards, but you need cash for transport, drinks, market stalls and smaller retailers/restaurants and small local tour companies.

Well if you want to use the ATM then there isn't really a choice although if you take out bigger sums it can work out better.
So for example let's say the min charge is £1.50 then you might be better off taking £200 rather than £100, although it depends on a number of factors.
How much do you need? How comfortable are you carrying cash? Is there an ATM in the hotel lobby where you can easily nip to the room and put some in the safe and carry a smaller amount? Do you have a decent carrying system? My husband has a soft wallet that goes inside his clothing attached to a belt loop by a chain. It's a trade-off between charges and safety but remember you don't need to carry all your cash and cards with you everyday. Most hotels have safes - usually in the room.
Personally I'd want at least enough money for 3 or 4 days and take what we need and leave the rest in the hotel safe.

Almost certainly.

Thanks lisyloo. ATM then. In cash I'll look to withdraw $500 on maybe two occasions for use when the card isn't possible. I don't have problems walking around with some spending money, America seems pretty safe! if ****** happens... travel insurance!