I have question about using credit card abroad

[TheHouseofMirth]

I'm looking at getting a new credit card to use abroad. Moneysavingexpert.com lists the best ones but there's something I don't understand. Several cards do not charge fees for withdrawing cash from ATMs but do charge interest on these transactions, regardless of whether or not the balance is repaid in full. This is what is says about the Halifax Clarity card:
"The rate for cash withdrawals is a fairly low 12.9% representative variable APR (if you don't get this rate you'll be charged up to 21.9%). This works out as around £1 per month for every £100 withdrawn."

What does that actually mean?!

Cash withdrawals start attracting interest the same day, whereas purchases only start getting it after the payment due date. So even if you pay off in full that month you will pay some interest on cash withdrawals. I have just applied for that card, and I have been offered the 12.9% rate.

Thanks! So you'd pay interest from the day you withdraw the money until you pay it back?

Sorry, me again. So if you withdrew £1000 over a 10 day holiday how much interest would you pay?

No, theoretically we wouldn't need to withdraw anything like that amount of cash. However, where we are going not everywhere will accept card payments and I'm trying to work out the cheapest way of "taking" cash with us.

WhoKnowsWhereTheTimeGoes have you received you card yet? Just wondering how long it all takes as I have rather left it to the last minute!

You pay interest till the day it is paid off, yes, but I think only if that is after the statement date, so whatever you do you will be paying some interest. So, you can't pay it off the minute you get home and stop the interest accruing then, it will still accrue until the statement date. From the statement date the interest accrues on any balance you don't pay off. I think.

As Cat64 says, if you use it in shops and restaurants etc you can avoid using so much cash. We are going abroad for a week and are planning to change probably £200 to euros before we go and then use the card as much as possible while we are away and hopefully not withdraw any or much cash.

If you withdrew £1000 and paid it off in full that month you would pay about £10 interest.

x-posted - I applied for it earlier this week, the paperwork came in a couple of days (yesterday) and I need to sign it and post it back to get the card, if you were lucky you might turn the whole thing round in a week or so.

Nationwide do now charge for cash from hole in the wall - but they are still pretty good for this - I would look into how much they charge as I used them last Novemebr when they had just started charging - but it was minimul really I think I took out £100

Thanks for all the info. That's a huge help!

If you're spending time abroad in a Euro or US Dollar country, and don't want to attract interest payments on cash withdrawals or fees or poor exchange rates for using a credit card I'd recommend taking out one of the prepaid cards available. I have one issued by FairFX for Euros. Loading it up before you travel is very easy and the exchange rate they offer is typically much better than that offered on the spot.

Should add.... loading up my FairFX card when travelling is also very easy and can be done by text message from any destination. If you're around on Wednesday at 13.30, BBC R4 are doing a Moneybox special on holiday money. It was their recommendation that made me check them out last year.

Just a quick warning - my sister applied for the Halifax one (she has a savings account with them too, with quite a bit of money in, so she thought it would be easy to get her application approved). She's had other cards and has a perfect credit rating, but the Halifax denied her online application. She went into the branch and apparently the system doesn't link up savings accounts or non online accounts or something. Anyway, they did it for her there and then and gave her a bigger overdraft. Basically, if it's refused for whatever reason it's worth pushing to find out why, because unless their system has changed (this was in September) it is pretty flawed. Enjoy your holiday!

I live in a Euro country and find if I need cash (and not from the euro account) then using my UK debit card is the way to go. You get a fairly good bank exchange rate, and no interest to pay, and it costs me about £4.00 max for about 500 euros.

According to MSE, debit cardsare generally the worst way to spend abroad and mine & DH's banks (LLoyds and Nat West) are particularly bad.
Have had app for Halifax card approved but wil look at the FairFX card too; it looks interesting and will stop us potentially overspending...

I was considering getting the Post Office Prepaid one but haven't done anything about it yet.

There's also 'Caxton FX'. When I checked earlier, Caxton were offering ?1.14:£1.00, FairFX were about ?1.10:£1.00 and the best elsewhere was about ?1.08:£1.00

Caxton FX are great. We have never had a problem with their euro card. And you text to check balance or top it up.