!! Reccomendations please !!

lukey105

Hi guys,

HSBC current account
So I'm going to USA for xmas/new year
Pretty sure it's a good idea to have a MasterCard/Visa credit for the trip just so that I have options/cover !!??

Could anyone recommend a good credit card option?
Flights are booked - car rental isn't - hotels neither (road tripping and booking as we go is the vibe !!)

Something that I can just pay off instantly or at the end of the month - not looking for a credit facility at all - just want the security/flexibility that I can't get with my Visa debit

Thanks all !!

xxx:T

bengalknights

You want ideally something like the halifax clarity card that has 0 travel related fees

dj1471

Have a read of the MSE Travel Credit Cards guide.

lisyloo

For cash I would recommend halifax clarity.
0% commission so you get mastercard exchange rate.
There will be ATM fees in US (about $3) from the ATM provider. This is nothing to do with Halifax and you'll need to pay this with ANY card as it's for the ATM facility. The only thing you can do to minimise is take out larger chunks of money (obviously within reason) as it's usually a fixed fee.

Halifax charge interest straight away so you need to pay off instantly or you could simply accept a small interest charge which is still way cheaper than other methods.

Be careful if mixing with purchases as payments MAY come off purchases first.

You either need to pay it ALL off instantly, use a different card for purchases or become knowledgeable in the order in which payments are applied. I find the first the simplest.

Anthorn

lukey105 wrote: »

Hi guys,

HSBC current account
So I'm going to USA for xmas/new year
Pretty sure it's a good idea to have a MasterCard/Visa credit for the trip just so that I have options/cover !!??

Could anyone recommend a good credit card option?
Flights are booked - car rental isn't - hotels neither (road tripping and booking as we go is the vibe !!)

Something that I can just pay off instantly or at the end of the month - not looking for a credit facility at all - just want the security/flexibility that I can't get with my Visa debit

Thanks all !!

xxx:T

I differ: Probably the daddy of them all for USA id Amex and you get basic buyer protection.

An alternative could be the Starling Bank current account and debit card if you can get the overdraft. Currently no overdraft fees and 15% APR.

Otherwise Clarity although if you can get that you can probably get the Starling Bank overdraft.

Mr_Goodkat

Anthorn wrote: »

I differ: Probably the daddy of them all for USA id Amex and you get basic buyer protection.

An alternative could be the Starling Bank current account and debit card if you can get the overdraft. Currently no overdraft fees and 15% APR.

Otherwise Clarity although if you can get that you can probably get the Starling Bank overdraft.

What about the non Sterling transaction fees charged by Amex?

Also why use a Starling Bank overdraft when a number of cards will give interest free period on card transactions and no loading e.g. Halifax Clarity? Granted cash withdrawals attract interest but likely be cheaper to use a Clarity for both purchases and cash withdrawals than using a Starling Bank overdraft.

Anthorn

Mr_Goodkat wrote: »

What about the non Sterling transaction fees charged by Amex?

Also why use a Starling Bank overdraft when a number of cards will give interest free period on card transactions and no loading e.g. Halifax Clarity? Granted cash withdrawals attract interest but likely be cheaper to use a Clarity for both purchases and cash withdrawals than using a Starling Bank overdraft.

You can answer that for yourself just by looking at the APR which is 18.9% for Clarity and 15% for the Starling Bank overdraft. Generally, Clarity wins on foreign cash withdrawals and that's why it's often recommended for that purpose.

I don't know what you mean by "no loading": Do you think that in order to use the Starling Bank overdraft we need to first load the account with the same amount afforded by the overdraft?

Lastly the interest-free period on credit cards generally only applies if the balance is cleared over two months consecutively. Otherwise interest is charged from the date of the transaction. Practically for that purpose the only time we'll get interest free is with a 0% APR purchase card.

Mr_Goodkat

Anthorn wrote: »

You can answer that for yourself just by looking at the APR which is 18.9% for Clarity and 15% for the Starling Bank overdraft. Generally, Clarity wins on foreign cash withdrawals and that's why it's often recommended for that purpose.

I don't know what you mean by "no loading": Do you think that in order to use the Starling Bank overdraft we need to first load the account with the same amount afforded by the overdraft?

Lastly the interest-free period on credit cards generally only applies if the balance is cleared over two months consecutively. Otherwise interest is charged from the date of the transaction. Practically for that purpose the only time we'll get interest free is with a 0% APR purchase card.

You started by saying Amex was the daddy and I asked about the charges for non sterling transactions? How is Amex with those fees better than a Visa / MasterCard or even third party Amex that doesn't charge foreign exchange fees?

Yes the APR is more on Clarity but if clearing in full only cash withdrawals would incur interest whereas using a Starling overdraft all transactions would attract interest so 15% on a 100% of Starling transactions is going to be more than the cash portion on the Clarity especially if card payment rather than cash is used wherever possible. You can even reduce potential charges on Clarity by making payments after withdrawing cash but in reality the cost if settling in full every month is minimal.

By no loading I mean no foreign exchange charges so a travel credit card is cheaper than using the overdraft from Starling

I have spent €2.5k on my MBNA Amex on flights and hotels in November, will be cleared by direct debit in January so costs me nothing in interest or foreign exchange fees whilst that money earns interest elsewhere. I did buy some RyanAir flights with my Amex but they were flights from the uk so in Sterling, double points and 2000 bonus points due to a spend £80+ and get 2000 points promotion but I digress.

Anthorn

Mr_Goodkat wrote: »

You started by saying Amex was the daddy and I asked about the charges for non sterling transactions? How is Amex with those fees better than a Visa / MasterCard or even third party Amex that doesn't charge foreign exchange fees?

Yes the APR is more on Clarity but if clearing in full only cash withdrawals would incur interest whereas using a Starling overdraft all transactions would attract interest so 15% on a 100% of Starling transactions is going to be more than the cash portion on the Clarity especially if card payment rather than cash is used wherever possible. You can even reduce potential charges on Clarity by making payments after withdrawing cash but in reality the cost if settling in full every month is minimal.

By no loading I mean no foreign exchange charges so a travel credit card is cheaper than using the overdraft from Starling

I have spent €2.5k on my MBNA Amex on flights and hotels in November, will be cleared by direct debit in January so costs me nothing in interest or foreign exchange fees whilst that money earns interest elsewhere. I did buy some RyanAir flights with my Amex but they were flights from the uk so in Sterling, double points and 2000 bonus points due to a spend £80+ and get 2000 points promotion but I digress.

Amex IS the daddy of them all in the U.S. Anyone who disagrees with that is probably living on a different planet, With regard to the rest I've already answered your queries. But how on earth do you calculate that 18.9% is cheaper than 15%?

Nick_C

OP. You've left it very late! A credit card is absolutely essential for renting a car in the US. You really should have two, especially when touring. Hotels take high security deposits which can take a few days to be released. You can eat up your credit limit very quickly when touring.

In the circumstances, I would say start with your own bank, as they are most likely to approve you and give you a decent credit limit.

Mastercard and Visa are equally acceptable.

Once one has been approved, then go for a second one with no Foreign loading fee.

If you've got a couple of credit cards with decent limits, then you won't need much cash, so I wouldn't worry about the lowest cost of getting cash from an ATM. Just use your existing cash card.

If the credit limits on the new card are low, monitor your spending on line and make additional payments to your CC accounts as and when necessary.

And let the card issuers no about your travel plans to lessen the risk of cards being declined.

Also be aware that when using credit cards in the US, you are often asked for photo ID as well

Fortyfoot

If you get a Clarity card pre load it, I do it all the time
Fortyfoot