Credit Card Advice (Travel)

Nitefly · 20 Jul 2011 at 12:34

Hi there,

I did do a search and found some overlapping threads, but thought it might be best to start my own to address my own concerns.

I have never owned a credit card before but I am interested in getting one because I think it might be the safest card that I could carry when travelling abroad for a prolonged period of time.

However, as I'm so uneducated in the matter, I don't really know what I should be looking for. What are the main things to look for when getting a card? Will I be limited in choice because of my lack of credit history? Is getting a card for travel a good idea? I was planning on taking the credit card, then paying this amount off immediately from my debit account each month.

Thoughts?

Thank you very much

Van Hellseek · 20 Jul 2011 at 12:37

A credit card is essential if you're travelling. I wouldn't bother looking too much into it tbh. Just get one with whatever bank account you have and stop worrying about it.

Glaucus · 20 Jul 2011 at 12:47

I went for a pre paid credit card
http://www.ezpayltd.co.uk/escape/
As it has no fees.
So better than using my normal credit card, I couldnt find any deal which came close to it, without changing banks.

PAz · 20 Jul 2011 at 12:47

I use the Santander zero credit card when travelling, no fees

Van Hellseek · 20 Jul 2011 at 12:48

Moses said:
That's extremely bad advice - he wants to be looking at foreign transaction fees, etc.

Not sure what you mean.. I have credit cards with Halifax, Lloyds and Nationwide and haven't been charged for foreign transactions. :confused:

Nitefly · 20 Jul 2011 at 13:05

Thanks for your replies, keep them coming

PinkPig · 20 Jul 2011 at 13:18

Van Hellseek said:
Not sure what you mean.. I have credit cards with Halifax, Lloyds and Nationwide and haven't been charged for foreign transactions.

I bet you have. Most credit cards (all except for one or two - Moneysavingexpert is a good place to look for details) charge a commission on foreign transactions. Most often it's a 'loading' on the exchange rate - so the exchange rate applied in your statement is a few percent worse than the official Visa exchange rate.

I have a Halifax Clarity credit card specifically because it has 0 percent loading and no other foreign transaction fees.

kumar101 · 20 Jul 2011 at 13:23

I have the Santander Zero Card which I use abroad.

No fees charged when paying for Hotels or making purchases but foreign bank may charge when using it to make ATM withdrawals.

[TW]Fox · 20 Jul 2011 at 13:56

This is so simple.

Get a Halifax Clarity or a Santander Zero.

Ignore all the other "advice" in this thread.

Both these cards will give you the closest to the perfect exchange rate a consumer is likely to get with no fee for purchases. You can even withdraw cash again at a great rate with an interest charge that works out at about 1% of the amount withdrawn if you pay off at the statement date, even less if you pay before.

[TW]Fox · 20 Jul 2011 at 14:04

Moses said:
I went into Santander the other day to change my address on an account, and asked about this kinda thing. Basically, with a Zero credit card from them, if you preload the card, it's free to withdraw money/pay on it (although you're not really meant to do it).

Do not do this - its against the terms and conditions and if they spot you doing it, they'll close your account.

Thre is no need really - the charges for withdrawing cash are very low. You basically pay the standard interest rate from the day of the withdrawl. This works out at about 1-1.4% of interest per month since the withdrawl. So if you wait a month and pay it off, you'd pay about 2 quid interest on a cash withdrawl of £200. If you paid it off the next day - ie via online banking or something - you'd end up paying so little interest it'd be about 5p...

It really is the correct way forward for foreign travel. No need to faff about getting ripped off with tourist rates on the highest, buying stupid prepaid cars, taking $1000 in currency with you which you then need to 'insure'.

You just carry a card, pay for things on it and use local cashpoints safe in the knowledge that you are doing this with the Visa or Mastercard base exchange rate - a very good rate - with no fees at all for card purchases and a trivial interest charge for cash withdrawls.

The extra money it'd cost you with an inferior rate on a prepaid card or the rubbish exchange rates on the high street is far greater than the small interest charge.

I make several foreign trips a year and I have never, ever got off a plane with more than £10 of foreign currency on me or with anything other than the right credit card. It's worked perfectly so far.

[TW]Fox · 20 Jul 2011 at 14:18

If youve got reasonable internet access simply paying it off asap is the absolute best way. You'll literally pay pennies in interest.

I cannot understand why people still waddle off down the travel agent, buy £1000 worth of currency, and then end up finding a travel insurance policy that'll cover the stupid amounts of cash they've just purchased at a crap rate when they could just..

... carry the right card?

Russinating · 20 Jul 2011 at 14:26

http://www.moneysavingexpert.com/travel/cheap-travel-money

Seft · 21 Jul 2011 at 09:18

[TW]Fox;19624428 said:
This is so simple.

Get a Halifax Clarity or a Santander Zero.

I wouldn't say it's so simple. The OP's lack of credit history means he might not be accepted onto those cards (especially if he doesn't already bank with one of them). Nevertheless, apply and see what happens (and come back and ask about credit building cards if you get declined).

N.B. There's now a third option for travel cards: http://www2.postoffice.co.uk/finance/credit-cards-loans/credit-card/ - £50 Quidco at the moment!

Nitefly · 21 Jul 2011 at 10:30

Thanks guys for all the information, you have been really helpful

Something that I'm only really paying due attention now to is withdrawing money. I imagine I'll be paying for many things in cash and therefore would need a card to withdraw it.

Is using a credit card to withdraw cash a fundamentally bad idea? Should I take a visa debit with me for cash withdrawals? I'm currently thinking taking a CC and a visa debit, using the CC for emergencies and only keeping a limited amount of money in my visa debit account at one time (transferring more money in as I go).

Thoughts? Sorry, absolutely noobish questions

Glaucus · 21 Jul 2011 at 10:33

Visa debit will cost loads to use abroad.

Nitefly · 21 Jul 2011 at 10:36

AcidHell2 said:
Visa debit will cost loads to use abroad.

I have a nationwide card that has never charged me to withdraw abroad, but that's in Europe. I assume that's a visa debit... well, it's a debit card for my savings account that has visa written on it!

What would be the best way of withdrawing cash abroad then? I'll be based in South America, if that changes anything.

Glaucus · 21 Jul 2011 at 10:38

Well it does depend on bank, I think nationwide is one of the good ones. Most are horrible. Just check on their site. It'll tell you what if any fees

Dark Sun · 21 Jul 2011 at 10:44

I have a Caxton FX card for travel. Save money on currency fees. You just top it up with money from your main bank account.

a1ex2001 · 21 Jul 2011 at 11:06

[TW]Fox;19624517 said:
It really is the correct way forward for foreign travel. No need to faff about getting ripped off with tourist rates on the highest, buying stupid prepaid cars, taking $1000 in currency with you which you then need to 'insure'.

This really, Carrying loads of local currency is so backwards and so expensive. Unless your going right off the beaten track somewhere but how many of us actually do that!

doodah · 21 Jul 2011 at 11:34

Seft said:
I wouldn't say it's so simple. The OP's lack of credit history means he might not be accepted onto those cards (especially if he doesn't already bank with one of them). Nevertheless, apply and see what happens (and come back and ask about credit building cards if you get declined).

N.B. There's now a third option for travel cards: http://www2.postoffice.co.uk/finance/credit-cards-loans/credit-card/ - £50 Quidco at the moment!

Tempting! Do they work on their own interest rates? If so I wonder how that compares to Halifax's and Santander's interest rates? £50 cash back seems too good to be true.