Halifax Clarity credit card

AllGrownUpWithSavings

I'm looking at applying for the Halifax Clarity credit card solely for use on holiday in Portugal at the end of August. I already have some euros so the card would be a back up in case I run out of cash.

I like that this card doesnt have an ATM fee but am put off slightly by the daily interest rate on cash withdrawals.

My question is - if I make a payment onto the card of say £200 before I go on holiday sort of preloading a "credit" would this cancel the interest as any withdrawal made would come off the £200 balance straightaway or does it (credit cards) not really work like that?

Thanks in advance for your help

[Deleted User]

Two problems. If you already have a balance, the payment would come off that.

Secondly, it's against the terms to deliberately put the account into credit.

But the daily interest is peanuts. Either make a payment after the withdrawal (if you have no other balance) or just pay it when you get back.

Loopyloo11

i looked into this too, no you can't preload as against terms and conditions. As said above the interest is very little. You could also set up a payment from your bank account to come out whilst you are aware to cover what you think you would spend? Ive use it twice now in greece and usa no problems with using ATM (although you may get a charge from the ATM itself if not your provider - a few pounds). In USA i also used it as a credit card a lot for payment which was easy and there is no interest on that as long as you pay in full on time.

PeacefulWaters

I like that this card doesnt have an ATM fee but am put off slightly by the daily interest rate on cash withdrawals.

To quantify what you're worrying about.

Draw £100 in local currency from a typical credit card and you'll be charged a £3 currency fee, a £3 cash advance fee and 5p a day in interest.

Draw £100 on a Clarity card and you're looking at 4p a day in interest.

£6.05 v 4p. Your call.

Clear the balance ASAP by all means. But I'd spend more time enjoying my holiday and less time worrying about my 99.3% saving not being quite enough.

knightstyle

It is easy to arrange with your bank before you go away to make a payment a few days after you arrive. That way the payment will pay off the cash withdrawal as that is the amount with the greatest interest.
We do this often and it works.

meer53

I use mine to withdraw cash abroad. I check a couple of days later and when the debits show i pay them off via internet banking. Simple. I don't use it for anything else.

MrMitch

Potentially a silly question, but is there a deterrent or anything stopping you using this card domestically as well internationally?

[Deleted User]

No. It's a regular credit card.

deefadog

I was about to ask the same question

what is the interest rate per day on £500? as i plan to withdraw a total of £3500 and transfer the balance to my AA 0% card

YorkshireBoy

deefadog wrote: »

what is the interest rate per day on £500? as i plan to withdraw a total of £3500 and transfer the balance to my AA 0% card

It's the interest rate per annum* divided by 365 isn't it?

* Note: that's not the APR, but the simple rate. See your T&Cs/summary box.

bouncydog1

Remember that any payment to the card will go first to clearing balances that have appeared on your statement. I have had this confirmed in writing by Halifax.

So, if your statement is issued on 1st month with £500 due on say 26th of that month, and you make a cash withdrawal of £500 on 4 th of the month, any payment you make will go towards clearing your statement balance of £500 first.

The interest charge is minimal on the cash withdrawal. Best bet to minimise interest on cash withdrawal, is to ensure there is no balance due on the card when you go away I.e. It has no transactions. Then a couple of days after you make a cash withdrawal transfer enough sterling to cover plus an extra £5. This then goes against the cash withdrawal and interest charge. You can also use it for purchases in the normal way and not be charged interest, and then settle in the normal way once statement is issued.