Using credit card abroad to withdraw cash - avoid interest

musol

Hi,

Halifax Clarity credit card makes no foreign currency or cash withdrawal fee when taking money out from an ATM abroad.

However, it charges hefty interest immediately on cash withdrawals.

To avoid having to take too much (even any) GBP abroad, and in case we need cash for certain purchases (eg, in local markets), is the following possible:

Overpay my Clarity credit card by a couple of hundred quid before going. I’ll therefore be in credit and won’t get charged any interest if I do withdraw cash within the £200 limit. This seems like a no brainer - assuming it's possible to overpay and assuming the local (Morocco) ATM doesn't charge a withdrawal fee.

If I don’t end up withdrawing any cash then I’ll use the card on my return to the UK and will use up the £200 in a couple of weeks.

Badboi

Alternatively, use a debit card for cash transactions from banks that don’t charge for foreign transactions , ie chase, starling, etc

sausage_time

Barclaycard Rewards give interest free ATM use if you pay in full.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

DullGreyGuy

musol said:

Hi,

Halifax Clarity credit card makes no foreign currency or cash withdrawal fee when taking money out from an ATM abroad.

However, it charges hefty interest immediately on cash withdrawals.

To avoid having to take too much (even any) GBP abroad, and in case we need cash for certain purchases (eg, in local markets), is the following possible:

Overpay my Clarity credit card by a couple of hundred quid before going. I’ll therefore be in credit and won’t get charged any interest if I do withdraw cash within the £200 limit. This seems like a no brainer - assuming it's possible to overpay and assuming the local (Morocco) ATM doesn't charge a withdrawal fee.

If I don’t end up withdrawing any cash then I’ll use the card on my return to the UK and will use up the £200 in a couple of weeks.

Its against the terms of most credit cards to put the account intentionally into the positive and if this is done by a payment they will often bounce it.

What is much more the no brainer is to get a Starling or Chase account etc who also dont charge anything for foreign withdrawals and pay you interest whilst the money is sitting there waiting to be taken.

NoodleDoodleMan

There is a way to negate interest on cash withdrawals with the Halifax Clarity - but only if you use it for such a purpose and pay back the amount quickly using the mobile app.

I've only once taken cash on the card - went straight onto the app to check how much had been debited and then paid that sum online without delay. 

I was expecting a few pennies interest to have accrued - none was added.

That won't work if you already have accumulated debits for transactions settling for goods and services - unless you pay off the whole balance in total.

NoodleDoodleMan

sausage_time said:

Barclaycard Rewards give interest free ATM use if you pay in full.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

You have to be vigilant and make sure the ATM doesn't impose a fee for withdrawing cash though.

sausage_time

NoodleDoodleMan said:

sausage_time said:

Barclaycard Rewards give interest free ATM use if you pay in full.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

You have to be vigilant and make sure the ATM doesn't impose a fee for withdrawing cash though.

That'a true whatever card you use.  And always decline any currency conversion the ATM might offer.

NoodleDoodleMan

sausage_time said:

NoodleDoodleMan said:

sausage_time said:

Barclaycard Rewards give interest free ATM use if you pay in full.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

You have to be vigilant and make sure the ATM doesn't impose a fee for withdrawing cash though.

That'a true whatever card you use.  And always decline any currency conversion the ATM might offer.

Indeed - but "user friendly" fee free ATMs are becoming an endangered species in many locations.

LinLui

I have a Currensea card for ATMs / cash withdrawals, and a Clarity card for spending on. I've accidentally tried to overpay on the latter one and it wouldn't let me. 

sausage_time

sausage_time said:

NoodleDoodleMan said:

sausage_time said:

Barclaycard Rewards give interest free ATM use if you pay in full.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

You have to be vigilant and make sure the ATM doesn't impose a fee for withdrawing cash though.

That'a true whatever card you use.  And always decline any currency conversion the ATM might offer.

Very true.  My recent trips abroad for business and pleasure have been cashless (card used for all purchases) so this has not been an issue.  Except for one particularly grumpy taxi driver in Greece whose card reader was "broken".

born_again

Just remember that if you are carrying a balance from previous statement. That any payment before next statement will go towards previous balance.