credit card overseas

martystoby

Hi, all. I'm off travelling soon for a couple of months before emigating to Australia. I am not working at the moment as have resigned before starting my new job in Oz. So obtaining a new British credit card may be difficult. I have two credit cards, one is an Egg card, the other is an Amazon Halifax card. I wanted to know if it would be better to transfer money into anyone of these accounts so as to draw on it when i'm abroad. I know i will get charged for using my card, but will i be charged merchandise interest even though my credit card account will be in the black. If i should transfer funds, which one is best? Kind regards to anyone that can help.

KiKi

I would still try an application for a credit card which doesn't charge you to use it overseas...so I would apply for the Post Office card. You won't get the 2.75% slapped on you for using it overseas! You can then pay it off online from a bank account whilst you're away, thus avoiding all charges.

However, otherwise I'd load up the Egg Card - assuming it's the Egg Card, and not an Egg Credit Card. You can have a positive balance on the Egg Card, and use it like a debit card (so no interest slapped on you) until it reaches 0 balance, at which point it effectively is a credit card (and you have to pay interest). Plus, all the time it has a positive balance, you *receive* 4% interest on it. It's all good.

(Be aware, though, that you will most likely be charged for taking out cash on such a card abroad, and still charged the 2.75% - or whatever it is for Egg - so you're best off making most purchases on a charge-free credit card like the PO one. You might as well try for it...you've got nothing to lose if you're emigrating anyway!)

HTH.
KiKi