Switching credit cards

Sncjw

Hi all 

So I posted about going abroad and most say take a credit card with you. Now I have a clarity card that is past its 0 percent interest on purchases deal and also a barclarycard platinum card that's past its 0 percent deal. 

So I was looking at the travel cards and barclarycard reward card has been put the best due to 0 percent fees on withdrawals and alsp on card transcations. So I am assuming it would just be the interest as if I were spending over here and did pay it off in full? 

Now my app is saying I can switch to that card. Should I go for it? 

[Deleted User]

If it saves you money, yes.

Sncjw

Thanks. Says no fees on withdrawal so like I would be charged interest on this? 

[Deleted User]

You would be charged interest on transactions at the prevailing rate for the transaction type.

Check to see if the rate is higher or lower than your Clarity card, which offers the same features.

Sncjw

I dont understand that first sentence 

[Deleted User]

You have interest rates for different types of transaction. Eg BTs, cash, purchases. 

You'll be charged interest at that rate. It may be a short term temporary rate or the standard rate. You need to know what interest you'll be charged 

Ebe_Scrooge

Sncjw said:

I dont understand that first sentence 

All credit cards charge interest on cash withdrawals, from the date of withdrawal until it's repaid.  This applies even if you pay the full statement balance (which would result in no interest being charged on ordinary purchases).

Now, most credit cards, and debit cards, also charge a fee for making a cash withdrawal - typically it's something like "3% or £3, whichever is the greater".  On top of that, most cards also charge a Foreign Exchange fee if you withdraw money abroad.

The big attraction of Halifax Clarity and other "travel" cards is that they don't charge a withdrawal or FX fee.  You'll still have to pay interest, but that's typically less overall than it would cost you if you used your ordinary debit card with its fees.

If you want to avoid paying interest, then assuming you have access to a secure internet connection whilst you're abroad, you wait until the cash withdrawal hits your account (which may not be immediately), then make a payment to your card.  But even if you wait until your statement arrives and just pay in full like you normally do, then the amount of interest is not going to be huge - the price of a pint or two.  Unless you're withdrawing thousands and thousands of pounds-worth.  So given that overall you'll be making a big saving compared to using a debit card, and the cost of interest itself it small, do you really want to be faffing around with online banking when you're on holiday?

Sncjw

If says this 

- No fees on spending or ATM withdrawals overseas - No interest on cash withdrawals if paid IN FULL

[Deleted User]

That means if you clear the cash in full by the due date, the interest will be waived.

Sncjw

So no interest charged on withdrawing cash then. I would do this in the atm at the hotel not elsewhere. 

[Deleted User]

As long as you clear in full.

Check for ATM fees, especially if you're going to use hotel ones. And opt to be charged in local currency.