Using credit card abroad to withdraw cash - avoid interest

NoodleDoodleMan

born_again said:

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

Which makes having two credit cards for foreign trips a best case scenario - with the BarclayCard Rewards card for cash withdrawals only.

Nebulous2

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.

I still use my clarity for cash withdrawals abroad, and a chase debit card for purchases. 

"Hefty interest" is a bit dramatic. 

I wait until the transaction appears on my app and then make a payment from another bank account. Interest is usually in the order of 20-30pence.