Credit card questions?

Credit card questions?

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photosnob

Original Poster:

1,339 posts

117 months

Friday 2nd October 2015
quotequote all
I have a halifax credit card which has zero fees to use abroad, and zero fees to withdraw cash on (although I have to pay interest on cash withdrawals). If I were to withdraw cash abroad, and use my online banking to pay it off immediately would I incur interest payments?

I'm asking because I'm going travelling for three months - so this could potentially save me carrying around a lot of cash, and at the same time not pay huge fees on my debit card.

Alternatively is there anyway to load money onto a credit card?

Thanks

Sam


SpamDisco

319 posts

123 months

Friday 2nd October 2015
quotequote all
Taken from the Halifax website:

Can I put money on my card to increase my available credit whilst on holiday?

Credit cards are not designed to be used this way. Using the card in this way breaches the product's Terms & Conditions, which state:

7.7 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money was sent.

33q

1,550 posts

122 months

Friday 2nd October 2015
quotequote all
That's interesting re not preloading the card.

2 years ago I needed to raise some cash for a BTL. The were some good 0% balance transfers available so I pre loaded some other CC accounts with the intention of getting refunds.

Natwest were fine....just refunded to my current account on request. Marks and spencer (run by HSBC) would not refund except to the origininating card company. I just used up the credit in normal spending.

I did about £50k like this and nobody complained about preloading.

So it might be worth checking other CC companies out

Gareth79

7,628 posts

245 months

Friday 2nd October 2015
quotequote all
Preloading is sometimes ok, it depends on the card issuer, and probably how much it is and for how long. Certainly withdrawing and immediately paying it off is ok though.

Ozzie Osmond

21,189 posts

245 months

Friday 2nd October 2015
quotequote all
photosnob said:
I have a halifax credit card which has zero fees to use abroad, and zero fees to withdraw cash on (although I have to pay interest on cash withdrawals). If I were to withdraw cash abroad, and use my online banking to pay it off immediately would I incur interest payments?
You are on the right track,

  • Halifax credit card is ideal for overseas use, especially the basic one.
  • You would need to "pre-load" the account to avoid all interest charges on withdrawals. However, if you pay it soon after a withdrawal you should keep the interest very low.


photosnob

Original Poster:

1,339 posts

117 months

Friday 2nd October 2015
quotequote all
Thanks guys.

My original plan was to carry around 5 grand around with me in cash. Which isn't smart in SE asia.

I think I'll just take enough with me for the first couple of weeks and then withdraw some each time I need to and pay it off immediately on my phone. The interest rate is 17.9% so even if I do have to pay a days interest - it will be pennies.

If anyone has any practical tips on how to "preload" my card I'd appreciate it.

SunsetZed

2,236 posts

169 months

Friday 2nd October 2015
quotequote all
Can't help out on the pre-loading but based on the length of time you're going for I'm guessing you're backpacking, I'd recommend getting a credit card and cancelling it so that you have what appears to be a legitimate working credit card that you can leave with any of the dodgier hostels / hotels that require you to leave a card with the reception desk which occasionally happens.

sideways sid

1,371 posts

214 months

Friday 2nd October 2015
quotequote all
Caxton FX do a useful card that I use for travelling. Pre-load online from my current account when exchange rates suit me, then spend in local currency as you would a normal credit card, without fees.

Its designed for major currencies IIRC but there must be a version suited to Malaysian Ringits etc.

Ozzie Osmond

21,189 posts

245 months

Friday 2nd October 2015
quotequote all
SunsetZed said:
I'd recommend getting a credit card and cancelling it so that you have what appears to be a legitimate working credit card that you can leave with any of the dodgier hostels / hotels that require you to leave a card with the reception desk which occasionally happens.
????

In my experience hotels swipe the card when you check-in to make sure it's working.

Foliage

3,861 posts

121 months

Friday 2nd October 2015
quotequote all
Cant you setup your accounts, so that your current account pays the full amount off your credit card each month automatically? or setup a standing order to pay a set amount each month onto your credit card.



Edited by Foliage on Friday 2nd October 14:33

Ozzie Osmond

21,189 posts

245 months

Friday 2nd October 2015
quotequote all
Foliage said:
Cant you setup your accounts, so that your current account pays the full amount off your credit card each month? or setup a standing order to pay a set amount each month onto your credit card.
Don't overlook that cash withdrawals are charged interest from the date of withdrawal, not from the date of your next statement. So the sooner you clear the balance the better. But you have to watch the order in which the credit card company allocates debits against credits - the details are usually set out in their Terms & Conditions.

Foliage

3,861 posts

121 months

Friday 2nd October 2015
quotequote all
Ozzie Osmond said:
Don't overlook that cash withdrawals are charged interest from the date of withdrawal.
Didn't know that, they don't like to make it easy do they.

But then the banks have to earn money somehow, no service should be free in our society, gotta pay peoples wages.

photosnob

Original Poster:

1,339 posts

117 months

Friday 2nd October 2015
quotequote all
Foliage said:
Cant you setup your accounts, so that your current account pays the full amount off your credit card each month automatically? or setup a standing order to pay a set amount each month onto your credit card.



Edited by Foliage on Friday 2nd October 14:33
I have done. All my cards go by direct debit, full amount.

But cash is charged daily. And I'm tight.

I'm happy to pay all my bills immediately. I don't need the free credit from the credit
Card.

What I want to know is if I pay on the day if I'll still pay interest.

tim0409

4,355 posts

158 months

Friday 2nd October 2015
quotequote all
photosnob said:
I have done. All my cards go by direct debit, full amount.

But cash is charged daily. And I'm tight.

I'm happy to pay all my bills immediately. I don't need the free credit from the credit
Card.

What I want to know is if I pay on the day if I'll still pay interest.
I have a Halifax Clarity card which I use for everything on holiday; when I withdraw cash abroad I transfer (that day) funds via faster payment (online banking) and I haven't been charged interest.

barryrs

4,376 posts

222 months

Friday 2nd October 2015
quotequote all
I used my clarity last month in the U.S. and of the £2k I spent around £300 was in cash withdrawals. Having just checked my statement I have been charged the grand sum of £1.04.

photosnob

Original Poster:

1,339 posts

117 months

Friday 2nd October 2015
quotequote all
tim0409 said:
I have a Halifax Clarity card which I use for everything on holiday; when I withdraw cash abroad I transfer (that day) funds via faster payment (online banking) and I haven't been charged interest.
Fantastic mate. Really appreciate that. Will save me a lot of money on my trip.

williaa68

1,527 posts

165 months

Friday 2nd October 2015
quotequote all
I have to confess to pre-loading mine by paying the full monthly balance on the day they took the direct debit so it credited twice. I didn't have any problems

photosnob

Original Poster:

1,339 posts

117 months

Friday 2nd October 2015
quotequote all
barryrs said:
I used my clarity last month in the U.S. and of the £2k I spent around £300 was in cash withdrawals. Having just checked my statement I have been charged the grand sum of £1.04.
But I'll be travelling for three months. And between me and my partner will be spending close to 10 grand. So there will be a lot more interest. And I'd rather pay nothing if I can avoid it.

megapixels83

821 posts

150 months

Saturday 3rd October 2015
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Where are you traveling?

photosnob

Original Poster:

1,339 posts

117 months

Saturday 3rd October 2015
quotequote all
megapixels83 said:
Where are you traveling?
Starting in bangkok, then up north - spending around a week in Chang Mai going ziplining and then playing with elephants. Been to chang mai and seen the temples before, so am not bothered about that. Then heading ti Pai for a week. And then having a few more days dossing. Then flying back to bangkok, and flying straight to Han Oi. Going to spend a month going down Vietnam. Will take it easy and see what I want there. Then heading over to Cambodia. Want to see the war museum, and Ankor Wat. Apart from that chill. Spend a week or two doing this. Then back to thailand for a month. Going to spend xmas and new years and a lovely island and then just dive and enjoy life.

Oh and a friend of mine has asked me to come out to LA for a few weeks after. He lives/works there so it's free accommodation. So depending on budget I might be going there as well smile

Not the most adventurous trip but I'll enjoy myself.

Edited by photosnob on Saturday 3rd October 19:21