Halifax Clarity Card - pay off immediately?

CEON44

I got a Halifax Clarity card a couple of years ago, specifically to use on holiday. Unfortunately due to circumstances I havent been able to get away until now coming September. I am aware through Martins emails that Clarity is a good choice to use so I need some more info please. from what I can gather if I use the card to purchase something then I get best exchange rate and if I clear the card within the month I have no fees to pay. Is this correct? I also believe that if I use the card to lift cash out of an ATM then I will get best exchange rate but will have to pay interest. Is this correct? My plan was to take only minimal cash with me and lift it from ATM's as needed. Is there a way to mitigate the interest payment? For example If I lifted 100Euro from an ATM could I immediately pay it back through my mobile banking app, or for that matter could I even pay the Clarity card prior to lifting the cash from ATM. Does this make any sense? Also, are there specific ATM/banks to go to or avoid, specifically in Majorca. The pound is so low at the minute Im trying to find any way possible to cut the costs

[Deleted User]

You can repay it immediately, but be aware that payments will go to any statemented transactions first. Don't be tempted to pre-load your card.

Withdrawing cash from ATMs is the cheapest way for you to get cash, but remember to decline any offer at conversion.

penners324

If you need to get cash out abroad, get a Starling bank account.

PRAISETHESUN

Cash payments start accruing interest from the moment they are made, so you should pay them off ASAP after withdrawing cash on your CC - transfer money using the app, or contact them to make a payment. As above however, keep in mind that if you have a statement generated and awaiting payment, then you will need to pay off the full balance of the statement plus the cash withdrawal, as the order of payments (as described in the T&Cs for your card) will allocate them to statemented balances first meaning your cash withdrawal will not be paid off and will continue to accrue interest.

Personally I use a Starling current account to withdraw money overseas. You can treat it as a pre-paid card if you wish and only load it with the funds you want to spend overseas. Monzo/Revolut are also similar products, but there are limitations in the amount of cash you can withdraw overseas before they start charging fees.

lisyloo

PRAISETHESUN wrote: »

Cash payments start accruing interest from the moment they are made

Actually from experience with clarity they are charged from when they are posted to the account.
So if you take money from an ATM on a Saturday it won’t get posted to your account until Monday.

CEON44

penners324 wrote: »

If you need to get cash out abroad, get a Starling bank account.

Personally I use a Starling current account to withdraw money overseas. You can treat it as a pre-paid card if you wish and only load it with the funds you want to spend overseas. Monzo/Revolut are also similar products, but there are limitations in the amount of cash you can withdraw overseas before they start charging fees.

Starling bank is interesting. Not just in terms of this holiday but for everyday use. How do people find it? Is it easy to change over to it?

CEON44

Thank you for all the replies. Probably will use the Clarity card and pay off immediately, at least this will minimise costs. I am interested in Starling but not sure I have time to set that up before I go

CEON44

Deleted_User wrote: »

You can repay it immediately, but be aware that payments will go to any statemented transactions first. Don't be tempted to pre-load your card.

Withdrawing cash from ATMs is the cheapest way for you to get cash, but remember to decline any offer at conversion.

I never use the card for anything so it always has a zero balance. And my plan was to pay it off immediately whilst in the resort, either a purchase or a cash withdrawal, so effectively keeping the zero balance. Of course if there is any added interest I would pay that off immediately, leaving the card with zero balance until my next holiday abroad

Nicholas

The foreign cash withdrawal will show on your Clarity card immediately, but the amount will only be approximate because it's based on that days exchange rate. When the cash withdrawal hits the card it will be the day it hits that decides what the actual amount will be.

Best way to mitigate interest is to see how much the pending transaction is for, so say it is for £300, what I would do is pay off £250ish straight away and then when it hits pay off the remainder. That way you're only paying interest for one day on £50 give or take.

eDicky

CEON44 wrote: »

Starling bank is interesting. Not just in terms of this holiday but for everyday use. How do people find it? Is it easy to change over to it?

I've been using Starling since they began, excellent. No need to 'change over', just use it in addition to what you have now, see how you like it. You can open the account in minutes on the app and the card arrives in a couple of days, so should be plenty of time.

If you then don't use your Clarity for cash withdrawals you can wait until purchases appear on your statement before paying them off. This usage will then add to your credit history, but not if you pay before they are statemented. Setting up a DD for the full amount is the easy way, then you can relax and enjoy your holiday

CEON44

Best way to mitigate interest is to see how much the pending transaction is for, so say it is for £300, what I would do is pay off £250ish straight away and then when it hits pay off the remainder. That way you're only paying interest for one day on £50 give or take.

Good advice, thank you