Credit Cards

jp_bl_68 · 24 Aug 2011 at 22:26

I'm planning to go to Thailand in the New Year but I'm a little bit concerned about getting access to my money.

I've never travelled outside of Europe before. In the past I've always used my debit card and my trips have never lasted longer than two weeks.

As I plan to leave Europe on this time and possibly stay away from home for several weeks I'm not sure that it's wise to rely solely on my debit card. I think I should get a credit card.

Having never considered getting one in the past I really have no idea how they work, which ones are any good or if they'll really offer me any additional security or convenience.

So, I'm after some advice. Would you recommend getting a credit card? If so, is there anything in particular I should be looking for/looking to avoid?

[TW]Fox · 24 Aug 2011 at 22:43

Yes, get a Halifax Clarity credit card. Use this card for purchases and cash withdrawls from ATM's. You'll pay no fee, no foreign exchange charge, no loading - your money will be exchanged at the Visa base rate which is as good an exchange rate as a tourist can ever hope to get.

The only catch is that cash withdrawls attract interest at 12.9% APR Representative from the day of withdrawl but in reality this is 1% a month - so if you take out 500 quid and pay it back a month later you'll only be charged a fiver.

Ignore all the suggestions of prepaid cards, travellers cheques, etc etc. It's all rubbish and inconvenient. You cannot beat the Halifax Clarity for a combination of convenience, exchange rate and lack of fees.

Seft · 24 Aug 2011 at 22:50

Using the right credit card is is great way to spend abroad. The best cards for use overseas are Halifax Clarity and Santander Zero, both of which won't charge you for usage abroad or withdrawing cash - in fact, you'll effectively get pretty much the best possible rate available for foreign currency. Unfortunately, you may not be accepted for either of these cards if you don't have much in the way of credit history (mortgage, loan, overdraft, mobile phone contract) or have an existing banking relationship with Halifax or Santander. If you post back with your existing history with credit products, someone on here can probably give you some advice tailored to your situation.

In the meantime, here's a reasonably impartial guide (from a card issuer) to understand more about how cards work: http://www.capitalone.co.uk/creditmadeclearer/what-is-credit.jsf

[FnG]magnolia · 24 Aug 2011 at 22:54

Fox, don't you get tired of offering the same great advice every single week? This topic should probably be stickied because it's got to be one of the most asked questions on the forums (after why are Muslims so horrible and why did that brown fella take my job?).

[TW]Fox · 24 Aug 2011 at 22:55

[FnG]magnolia;19913960 said:
Fox, don't you get tired of offering the same great advice every single week? This topic should probably be stickied because it's got to be one of the most asked questions on the forums (after why are Muslims so horrible and why did that brown fella take my job?).

I particularly like it when people argue against me about prepaid cards or tell me that it's a stupid idea because credit is evil and makes you into a debt-person. It makes me feel warm and fuzzy inside.

jp_bl_68 · 24 Aug 2011 at 23:12

Seft said:
If you post back with your existing history with credit products, someone on here can probably give you some advice tailored to your situation.

I'm currently with Santander (was with Abbey and Abbey National before that). I have an outstanding student loan of around £10k. I have no other credit history.

[TW]Fox · 24 Aug 2011 at 23:13

Your student loan is irrelevent. Have you really never had a credit card, mobile phone contract etc before?

jp_bl_68 · 24 Aug 2011 at 23:21

Never. I've never had to borrow any money (except from my parents), I've never felt the need to have a contract mobile phone, I've always saved up for the things I want.

Not sure if it makes a difference but I'm 25 and own nothing of any value besides my laptop.

Pudney · 24 Aug 2011 at 23:32

Best bet is to try for the Santander Zero then as they have a profile of your financial history so are likely to be more amenable.

Not to say that it isn't worth trying with Halifax, but they have basically no information to base any decision on which is never something banks like!