Halifax Clarity Card

evergreen
evergreen Posts: 396 Forumite
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in Flights, currency & car hire
If I overpaid my Halifax Clarity Card so that it had a plus balance before I go to USA, would that mean if I drew money out with it from cash point, I would not be charged interest? Thanks fir any advice.
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  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    Yes.

    But you'd be breaking the terms and conditions of the account and run the risk of the card being blocked.

    I'd suggest taking the tiny interest hit and paying the day the transaction shows on your account online.

    Or try Starling Bank.
  • photome
    photome Posts: 16,361 Forumite
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    Question has been asked many times.

    IMO it’s not worth it and also not worth worrying about paying it off untill you return home.

    I withdrew just under £1500/$2000 over last 2 weeks in USA, paid off today on return home...cost £1.34 interest
  • evergreen
    evergreen Posts: 396 Forumite
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    Thank you. Sounds like pay when I get home is the way to go!
  • System
    System Posts: 178,093 Community Admin
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    Most US ATMs will surcharge you, so even if you follow through as planned you'll still need to pay.
  • photome
    photome Posts: 16,361 Forumite
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    Heng_Leng wrote: »
    Most US ATMs will surcharge you, so even if you follow through as planned you'll still need to pay.

    Yes ATMs charge but its still the best MSE way to get your cash ( along with a couple of other cards/accounts)
  • Robothell
    Robothell Posts: 494 Forumite
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    Whilst I've had a Clarity card for years I only ever really use it for purchases rather than drawing out of the ATM. Am I right in thinking if you draw the money out and then pay it as soon as it appears on the statement then the payment is automatically applied to the debt that accrues interest? So if I have purchases on the card the money isn't applied to them and not the cash withdrawal?

    Thanks in advance.
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  • photome
    photome Posts: 16,361 Forumite
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    Robothell wrote: »
    Whilst I've had a Clarity card for years I only ever really use it for purchases rather than drawing out of the ATM. Am I right in thinking if you draw the money out and then pay it as soon as it appears on the statement then the payment is automatically applied to the debt that accrues interest? So if I have purchases on the card the money isn't applied to them and not the cash withdrawal?

    Thanks in advance.

    Not a daft question, I am not sure of the answer

    To save any hassle ( for me) I only use Clarity for overseas withdrawals and a Post office credit card for overseas purchases (Po credit card also has no foreign transaction fees)
  • eDicky
    eDicky Posts: 6,570 Forumite
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    Robothell wrote: »
    Whilst I've had a Clarity card for years I only ever really use it for purchases rather than drawing out of the ATM. Am I right in thinking if you draw the money out and then pay it as soon as it appears on the statement then the payment is automatically applied to the debt that accrues interest? So if I have purchases on the card the money isn't applied to them and not the cash withdrawal
    Payments made will be applied first to pay off any balance that already appeared on your statement, then to your cash withdrawal, and finally to any purchases since your last statement, in that order. So if you want to pay off your withdrawal you need to cover any previously statemented amount in addition.

    It works this way with most credit cards, but Tandem differs in that payments are allocated to cash withdrawals first, making clearing them early simpler.
    Evolution, not revolution
  • zagfles
    zagfles Posts: 20,318 Forumite
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    eDicky wrote: »
    Payments made will be applied first to pay off any balance that already appeared on your statement, then to your cash withdrawal, and finally to any purchases since your last statement, in that order. So if you want to pay off your withdrawal you need to cover any previously statemented amount in addition.

    It works this way with most credit cards, but Tandem differs in that payments are allocated to cash withdrawals first, making clearing them early simpler.
    Really?? How does that work? That's likely to cause far more confusion.

    Example:
    Statement on the 5th April, balance £100 of purchases
    Cash withdrawal on the 15th, £100
    Payment of £100 on the 20th
    No further payments before next statement.

    If the £100 payment was allocated to the unstatemented cash advance, that means you've not paid anything from your statement balance, and so not paid your min payment, so you'd surely get late payment charges and interest applied? Even if you think you've paid your full statement balance!
  • eDicky
    eDicky Posts: 6,570 Forumite
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    zagfles wrote: »
    Really?? How does that work? That's likely to cause far more confusion.

    Example:
    Statement on the 5th April, balance £100 of purchases
    Cash withdrawal on the 15th, £100
    Payment of £100 on the 20th
    No further payments before next statement.

    If the £100 payment was allocated to the unstatemented cash advance, that means you've not paid anything from your statement balance, and so not paid your min payment, so you'd surely get late payment charges and interest applied? Even if you think you've paid your full statement balance!
    I guess if you pay manually you could have that problem, but using direct debit would take care of it.

    For me it seems simpler when paying off a cash withdrawal early or immediately, if you don't have to calculate and pay off any statemented balance at the same time.
    Evolution, not revolution
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