News & Articles

Market News, Guides, Tips n Tricks

Comparing Halifax's £20 Cashback Offer on Clarity Travel Credit Card: Is It Worthwhile for Your Overseas Spending?

Halifax has recently launched a new offer on its Clarity travel credit card, providing an opportunity for customers to receive £20 cashback. This offer applies to new customers who open an account and make any purchase within the first 90 days. The Halifax Clarity credit card is highly regarded as a top travel credit card due to its lack of fees on overseas spending, making it an attractive option for those looking for a cost-effective way to spend abroad.

The card offers several benefits, including no fees for foreign transactions or cash withdrawals. As long as the card is paid off in full each month, no interest will be charged on spending abroad. However, it's worth noting that interest will apply to cash withdrawals from the moment they are made, even if the card is paid off in full.

Halifax's limited-time cashback promotion provides new customers with the opportunity to earn £20 cashback on any purchase made within the first 90 days of card ownership. The cashback amount will be credited to the customer's account within 180 days.

In comparison to the Halifax Clarity credit card, the Barclaycard Rewards Visa is another competitive travel credit card option. It also offers no foreign transaction or cash withdrawal fees, along with the Visa exchange rate. Additionally, it provides 0.25% cashback on everyday spending and offers various perks such as free access to Apple Music, Apple TV, Apple News+, and Apple Arcade.

If obtaining a travel credit card doesn't align with your preferences, there are other options for spending abroad. Utilizing a fee-free debit card is one of the cheapest ways to spend while traveling. Leading banks like Chase Bank and Starling offer fee-free spending and cash withdrawals abroad, with no limits. Chase Bank even provides 1% cashback on purchases for the first year. Opening an account with these banks is quick and easy, and virtual cards can be added to digital wallets immediately.

Prepaid cards are another alternative to consider. Providers like Wise and Revolut allow you to exchange and hold money in multiple currencies through online accounts. While these cards don't earn interest on balances and may involve fees for currency conversion, they can still offer cost-effective ways to manage your holiday expenses.

When obtaining foreign cash, withdrawing it at your destination using a fee-free debit card is usually the most affordable option. However, having some local currency on hand upon arrival can be beneficial for initial expenses. Comparing bureau de change rates online and ordering larger sums for better rates can help minimise costs.

To ensure you make the best decision regarding holiday money, there are a few factors to consider. For car rentals, it's important to check the accepted payment methods, as many companies don't accept debit or prepaid cards for holding funds. Using a travel credit card can provide added protection in case of any issues during the rental period.

Keep in mind that fee-free debit cards and prepaid cards often rely on smartphones for management and transactions. If you don't have a smartphone, alternatives like Metro Bank offer credit cards with free spending and cash withdrawals in most of Europe, with the ability to apply and obtain the card in a branch.

Opting to pay in the local currency when using cards is recommended to avoid unfavourable exchange rates and additional fees. When accessing cash through local ATMs, be mindful of potential charges and try to use cashpoints at local bank branches for better rates.

Lastly, it's essential to be aware of inactivity fees. While the prepaid card providers mentioned in this article do not charge such fees, other providers may implement them if the card is not used for an extended period.

Considering these factors can help you make an informed decision on how to manage your holiday money efficiently and cost-effectively.


Pin It