Halifax Clarity Card

Daniel86

Hello, so when checking for the cheapest travel money on this site, the Halifax Clarity card was recommended.

I just have a few questions I hope you can help with.

I have got it and setup a direct debit to pay the full outstanding balance each month, does this mean I will pay no interest at all on overseas transactions and cash withdrawals?

Also, they didn't give me the lowest rate, but 29% instead. But as I'll be paying off in full each month, this doesn't matter?

Many thanks!

YorkshireBoy

Daniel86 wrote: »

I have got it and setup a direct debit to pay the full outstanding balance each month, does this mean I will pay no interest at all on overseas transactions and cash withdrawals?

No it doesn't. When you get round to reading the information they sent you you'll find there's no interest free period on cash transactions.

Also, they didn't give me the lowest rate, but 29% instead. But as I'll be paying off in full each month, this doesn't matter?

See above.

bigadaj

With a direct debit then you will be fine for all foreign purchases and they won't cost you anything.

If you start to take cash out abroad then you pay interest from the time you withdraw so you wil be paying at your interest rate. You can reduce your costs either by paying immediately or very soon after you make the withdrawal, or pay as soon as you vpget back from your holiday. This will still be cheaper than most other transactions, however if you combine purchases and cash withdrawals you'll probably have to pay off everything as soon as you can to minimise interest.

My clarity is the one credit card I haven't got a direct debit set up for as I generally only use when abroad. I've started to just use it for purchases and use my flex plus debit card for cash withdrawals on my last couple of trips, metro and n & p also offer free cash withdrawals.

Fortyfoot

I put some money on the card before I go abroad. Some say you cannot do this, but I have done it several times.

Fortyfoot

PeacefulWaters

Fortyfoot wrote: »

I put some money on the card before I go abroad. Some say you cannot do this, but I have done it several times.

Fortyfoot

You can do it, but it breaches the T&Cs.

It can also trigger automated fraud or money laundering systems leading to the card being frozen.

[Deleted User]

PeacefulWaters wrote: »

You can do it, but it breaches the T&Cs.

It can also trigger automated fraud or money laundering systems leading to the card being frozen.

Tend to agree with Forty Foot - I have done this in the past, also I paid my Clarity account online a couple of days ago (the statement amount) - Halifax have now credited me my £5 reward which means they have put my account in credit themselves - very useful as I'm going abroad in a few weeks for a holiday. If I don't spend on the card this month, it'll be there to be offset against any interest charged ....

YorkshireBoy

It's a good few years ago now, but here's what Halifax have shown they're prepared to do if you (significantly) pre-load one of their credit cards for overseas use...

https://forums.moneysavingexpert.com/discussion/528883

For the sake of saving a few quid in interest, I wouldn't risk it personally. Those that do must ensure they are carrying alternative payment means.

[Deleted User]

YorkshireBoy wrote: »

It's a good few years ago now, but here's what Halifax have shown they're prepared to do if you (significantly) pre-load one of their credit cards for overseas use...

https://forums.moneysavingexpert.com/discussion/528883

For the sake of saving a few quid in interest, I wouldn't risk it personally. Those that do must ensure they are carrying alternative payment means.

Thanks Yorkshire, I think that's the point - having looked at the forum above, I see that the OP had put the CC in credit by £5000 - no wonder questions were asked! The Halifax employee posting on the same forum seemed to indicate that it was the amount deposited that had probably caused the problem ...

Just out of interest (no pun intended), the interest charged me last summer by Halifax was £2.60p when I withdrew £700 cash during a two week holiday (I made sure I cleared the balance the day after we returned).

callum9999

YorkshireBoy wrote: »

It's a good few years ago now, but here's what Halifax have shown they're prepared to do if you (significantly) pre-load one of their credit cards for overseas use...

https://forums.moneysavingexpert.com/discussion/528883

For the sake of saving a few quid in interest, I wouldn't risk it personally. Those that do must ensure they are carrying alternative payment means.

I wouldn't either - though if the small interest payment is a big deal to you then you could just send faster payments on the day you do the withdrawal. That's what I tend to do when I remember/have wifi, so if the card ever gets "preloaded" it's only for a day or so.

YorkshireBoy

On the original 12.9% APR representative rate, the cost was around 3p/day/£100.

So if you took £1,000 cash out over a 14 night holiday the average balance would be £500, giving a cost of £2.10 (and that's 2 large beers at the €1.40 I was paying last week in the Canaries!).

Now if you had to take the same out on your unfavourable back up card (because Halifax had blocked your Clarity card after you'd pre-loaded £1K), that same £1,000 will cost you at least £27.50

Daniel86

Thanks for all your help, so basically the card will be perfect for any purchases abroad and if/when I take out cash, it's best to pay it back straight away with my online banking. But even if I leave it for the monthly direct debit to pay it back, the interest will still be very low.