Do I need to get a bespoke CC to use abroad or not?

Ozret

I'm off to the States in August

Very simply, I currently hold a First Direct (Gold) Credit Card that I can use. Is there any benefit to me applying for a bespoke Halifax/Barclaycard etc 'Travel' CC to use instead?

TIA

CliveOfIndia

You don't have to use one of the "travel cards".  But the benefit is that they charge no Foreign Exchange fee, whereas most credit cards will impose an FX fee for every non-sterling transaction.

You can also use them for withdrawing cash from at ATM, again with no fee being imposed (most debit cards will charge a fee for every ATM withdrawal, though there are some these days that won't charge a fee).

The Halifax Clarity will charge you interest on the cash withdrawal (though often that's still less than the fee you'd be charged by using most debit cards).  The Barclaycard Rewards card won't charge interest as long as you pay the statement in full every month.

But cash withdrawals aside, it's the lack of FX fees that make the "travel cards" attractive.

Worth checking the T&Cs of your existing card - I'm not sure whether they charge an FX fee or not.  But the majority of "ordinary" credit cards will.

jbrassy

Yes. First Direct will charge 2.99% for each transaction on its credit card while Halifax Clarity and Barclaycard Rewards will charge nothing. Although 2.99% might not sound a lot, it can add up over the course of a holiday. I would strongly recommend Barclaycard Rewards combined with a fee-free debit card (Chase, First Direct, Starling, Kroo, Virgin Money) for withdrawing cash and as a back-up.

Ozret

Thanks Clive,

I've looked at the FD CC T&C's but I can't work out how the fees would affect me (I'm a complete luddite where CC's are concerned) I saw this matter discussed on Martins' ITV show a couple of weeks ago and had a look today.

Re: Cash withdrawal. I've already got a couple of hundred $'s in folding, so I can't see there be any real need to get anymore

Ozret

jbrassy said:

Yes. First Direct will charge 2.99% for each transaction on its credit card while Halifax Clarity and Barclaycard Rewards will charge nothing. Although 2.99% might not sound a lot, it can add up over the course of a holiday. I would strongly recommend Barclaycard Rewards combined with a fee-free debit card (Chase, First Direct, Starling, Kroo, Virgin Money) for withdrawing cash and as a back-up.

Thank you. I think I've already made my mind up

CliveOfIndia

Ozret said:

I've looked at the FD CC T&C's but I can't work out how the fees would affect me

According to their website, there's a 2.99% FX fee (as helpfully pointed out by jbrassy!).  So if you buy something for the equivalent of £100, you'll actually have to pay £102.99 - there's a £2.99 fee for every £100's worth of purchases.  That's just for illustration - the 2.99% fee will be added on to every transaction, no matter what the value of the transaction is.

As the previous poster said, it may not sound a lot but it can add up if you're spending a lot on the card whilst you're over there.  And this is, after all, MSE - why pay a fee at all if you don't have to?

TOP_CAT

Without the better travel cards I think its said you pay out 4-6% to use the bad cards .
If thats not exact or correct...... you will be paying something to spend your own money with the wrong cards .

Paying any percentage to spend your own money is a choice you have .
It adds up if you travel over your lifetime .

Ozret

Clive,

Thanks for putting it in a way that my tiny brain understands

So I've not long completed an MSE Eligibility Calculater check. The result is I've got a 0% chance getting a Halifax Clarity Card    Now for clarity, this has NOTHING to do with me being heavily in debt, more to do with having very limited credit history as I've only held a credit card for less than a year.

The only Card I could get is a Virgin Money card which is pre-approved

CliveOfIndia

TOP_CAT said:

Without the better travel cards I think its said you pay out 4-6% to use the bad cards .
If thats not exact or correct...... you will be paying something to spend your own money with the wrong cards .

Every credit card will clearly state in the T&Cs what the FX fee is.  In the case of FD it's 2.99% - other cards may very well charge more, but it will be clearly stated what the fee is.

You're right, though - a seemingly small percentage fee can start to add up over a large volume of transactions.

Ozret

In fact, ignore the above. I can't even get a Virgin Money CC!!!

Good news is Mrs Ozret has spoken to Halifax and added me as an additional Card Holder. I think I may have to do a bit of spending whilst we're away. Then pay is off ASAP

lr1277

There is also the Currensea card. This is a debit card that is linked to your current account. There is a 0.5% fee for the free card and no fee for the paid card. For every transaction, the equivalent amount in pounds is taken from your current account by direct debit.

Advantages: no credit check nor income requirements.

Disadvantages: as it is a debit card, there is no S75 protection but there is chargeback.Also I don't know how refunds work. Finally you need to give them access to your current account.

Regarding being a supplementary cardholder on Mrs Ozret's account, she only gets S75 protection on anything bought for her use, even if it is bought with your supplementary card. As a supplementary card holder you don't get S75 protection on anything you buy for yourself.

Edited to add: re-reading my post I don't know if the supplementary card holder gets insurance protection. You may have seen T's & C's saying how much money they will give you if you lose your life/eye/limb. That may just apply to the primary card holder. I don't know so worth finding out. Especially if you do things on holiday that you wouldn't do in the UK like say dangerous sports.

Finally using your FD card, sometimes it is worth using this card for foreign transactions. Because you have customer service from FD. So sometimes it is worth taking the hit of the fee so there is somebody you can talk to at FD. I would use a card with good customer service if I thought I was buying something unknown or dodgy. Needs must.