0% Spending Credit Card Abroad...is there such a thing??

M4ndy17

Hi
We're going abroad for a few weeks and for peace of mind I would like to take a credit card as a back up....however which is best?? Being Self Employed paying it back straight away on my return would be a struggle so I would like a few months 0%. But also fees are confusing too.....can anyone help please??

Thankyou Mandy

Ebe_Scrooge

The Halifax Clarity card is often touted as a good card for use abroad, as they don't charge transaction fees, plus there's no fee to withdraw cash, which most cards do charge for. It's not 0% though. You'd need to weigh up the costs - most of the usual 0% cards will charge fees for use abroad, so the fees may negate the savings on interest. Also, most 0% cards are only offered to those with a solid credit history.


One thing concerns me though. You say you want the card as a "backup", then go on to say you'll struggle to repay it straight away ? This to me sounds like you're planning on spending money you don't really have, or can't afford ? It's really not a good idea to look on credit cards as "free cash". I'm not meaning to be judgemental, rather I'm just trying to avoid you getting into a cycle of debt.

ARH_2

The nationwide Select credit card is a real winner for me. It gives you 0.5% cashback in sterling. Purchases (not cash withdrawals) are fee-free abroad.

It's therefore my go-to card when abroad, and when the retailer won't take Amex at home.

They also do a 12 months 0% on purchases or balance transfers.

You need to be a nationwide current account customer though.

Nicky321

Just applied for the Halifax Clarity Card, and final checks pending, been successful. I plan to use this to withdraw cash when on holiday, and maybe spend on it while there. If I repay it the same day or day after, does anyone know am i liable to incur charges?

Took this from their website for the card

"There's no fee for cash withdrawals, yet you'll be charged interest at 18.9% representative APR even if you pay it off in full. So it works out at about £1.50/month for each £100 withdrawn (if you get this APR)."

M4ndy17

Thankyou no not judgemental at all....it's just in case our hard saved cash is lost/stolen etc or if we encounter any unexpected expenses. I have a good credit score....no outstanding debt...only mortgage & yes your right better to pay a little interest if I can't manage to clear in one month after not earning for a few weeks, than incur transaction charges etc. I just hate paying back more than I should!

Ebe_Scrooge

Nicky321 wrote: »

If I repay it the same day or day after, does anyone know am i liable to incur charges?

If you have access to a secure internet connection whilst you're abroad, if you pay off the balance on the same day as the transaction hits your account then you'll not pay any interest.


That said, even if you have to wait until you get home to settle the account, the amount of interest for a week or so will be the equivalent of a couple of pints of beer, or thereabouts - it's not really worth worrying about.

Nicky321

Ebe_Scrooge wrote: »

If you have access to a secure internet connection whilst you're abroad, if you pay off the balance on the same day as the transaction hits your account then you'll not pay any interest.


That said, even if you have to wait until you get home to settle the account, the amount of interest for a week or so will be the equivalent of a couple of pints of beer, or thereabouts - it's not really worth worrying about.

Thankyou Ebe Scrooge

that's what i was thinking, but wanted to check first.

Nicky321

M4ndy17 sorry for jumping onto you thread, it was done mistake

Dobbibill

M4ndy17 wrote: »

Hi
We're going abroad for a few weeks and for peace of mind I would like to take a credit card as a back up....however which is best?? Being Self Employed paying it back straight away on my return would be a struggle so I would like a few months 0%. But also fees are confusing too.....can anyone help please??

Thankyou Mandy

Ebe Scrooge has given you good advice with this - make sure it's paid in full and you will minimise the additional costs.

Nicky321 wrote: »

Just applied for the Halifax Clarity Card, and final checks pending, been successful. I plan to use this to withdraw cash when on holiday, and maybe spend on it while there. If I repay it the same day or day after, does anyone know am i liable to incur charges?

Took this from their website for the card

"There's no fee for cash withdrawals, yet you'll be charged interest at 18.9% representative APR even if you pay it off in full. So it works out at about £1.50/month for each £100 withdrawn (if you get this APR)."

Make sure it's hits your statement before you pay, otherwise it won't be taken off the balance intended if there is any other balance on the card.

redux

Ebe_Scrooge wrote: »

If you have access to a secure internet connection whilst you're abroad, if you pay off the balance on the same day as the transaction hits your account then you'll not pay any interest.


That said, even if you have to wait until you get home to settle the account, the amount of interest for a week or so will be the equivalent of a couple of pints of beer, or thereabouts - it's not really worth worrying about.

To possibly clarify slightly, it's worth checking the terms and conditions about this.

Although payment usually goes towards highest interest items first, it may also say that payment goes towards items that have appeared on a statement before items that have not yet appeared.

Thus to best minimise interest it may be necessary to pay the last statement balance earlier than usual, plus the cash advance amount.

I don't know for sure about this myself, but the last time I suggested it someone else confirmed it.

Superscrooge

As far as I'm aware you can use ANY 0% purchases card abroad.

You will incur a non sterling transaction fee of approx 2.75% But this might work out cheaper than standard credit card interest if it is going to take a few months to pay off the balance?