Credit Card for 7 months travel

Riyazi

Hi

I have a friend who is going on a 7 month trip around the world and is thinking of getting a credit card as a backup for any emergencies. He is thinking of getting the Virgin card which is supposed to give 0% for 15 months and 15.9% thereafter or the Capital One which gives 0% upto November and then 9% thereafter.

He is most probably going to pay off any usage on the card in full to avoid interest but if he needs additional cash he would charge the card in the hope of paying off in full when he comes back next year.

In these circumstances
1) am I right in advising him to get the Virgin card which gives him the maximum 0% period so that he can pay off in full when he gets back and therefore avoid any interest at all?
2) Or are there any other better credit cards that he might use for his purposes ?
3) Will he have additional charges or will he be excluded from the 0% period because he uses the card abroad ?
4) Is he better off getting a VISA or a Mastercard considering he is going to be travelling to South Asia and South American countries.

Thanks in advance

lisyloo

so that he can pay off in full when he gets back

There are always minimum payments required.
He could set up a direct debit for convenience for the minimum.

and is thinking of getting a credit card as a backup for any emergencies

I would get more than one in case one stops working.
Maybe even 3 (amex, visa and mastercard).
Amex are doing 5% cashback at the moment for 3 months plus £33.75 if you go through quidco. Similarly there are cashback deals on other cards but obviously you have to weigh that up against other factors.
It would be sensible to keep the companies informed as to where he is going so that they know it's not fraudulent use in many countries.

Will he have additional charges or will he be excluded from the 0% period because he uses the card abroad ?

I don't know about that particualr card but many cards have currency conversion charges (a bit like when exchanging cash you pay comission).
Normally this is around 2.75% but some cards (like nationwide or the post office) do this for free.
This benefit may be of greater value than the 0% (depending on his tax rate and what savings rate he gets).

but if he needs additional cash he would charge the card in the hope of paying off in full when he comes back next year.

Not a good idea.
There will be interest for cash and fees.
If he has money to withdraw then a Nationwide debit card is best as there are NO fees (no interet, no ATM fees and no currency conversion fees).

skyrider007

1) Yep
2) Nationwide & Post Office cards don't charge foreign transaction commission
3) Apart from the commission fee, I don't think so.
4) Master and Visa are equally widely accepted, they're pretty much the same.

bernice_2

i am having building work and although i have the cash i was hoping to use a interest free cc for supplies and then pay at the end of free period. anyone know of a good rate credit card