nationwide credit card

If you use your credit card to obtain cash/forex in the UK you normally pay quite large cash advance fees and interest starts that day. You might be better paying by debit card or cash.

Don't forget your passport!

So I would be charged interest from the day I bought the Euros, unlike buying goods, where there is no interest if the card is paid off in full each month? So why do all the money sites say use a credit card abroad?

I was wanting a new card as I work for Asda and Goldfish stopped giving vouchers for Asda so I have decided to stop using Goldfish. I thought it was a good deal getting 10% off at Asda, paying by credit card then at Christmas using my points to spend at Asda and getting 10% off etc.

On my cards interest is charged from the day of a cash advance - that would be the day you purchased your Euros in the UK. If you got cash (Euros) from an ATM abroad interest would be charged from the day of withdrawal. Purchasing goods or service abroad is different - but you ought to familiarise yourself with how your card issuer charges for such transactions on its credit card. Nationwide debit cards seemed to behave differently when I had one a few years ago - perhaps you should be taking one of those with you?

As to your second comment - I am not sure all sites do say use a credit card abroad. Within the EU you will want some Euros (cash) and a card of some sort - but that could be a credit, debit or charge card. Travellers cheques (and the new Amex card) are probably not worthwhile.

If you're concerned that you won't be around to pay your bill by the due date why not set up a direct debit for the minimum amount? Then at least you're keeping your nose clean and can sort out the rest when you get back.

Rob Graham

Do these sites not suggest that you put the money in your credit card account first? ie. Have a positive balance.

Think this is the case, then you do not get charged for a cash advance, because it is not an advance. Might be wrong but I think this is what I have read on similar sites.

As far as I know they don't. They say use a cash card to get money out of ATMs, as being better than using money changers of any sort, and use a Nationwide cash card for preference. They also say use credit cards for purchases abroad, as the exchange rate is again better than you get for buying cash, despite the fees levied.

If you are going to the USA, low value AMEX travellers' cheques ($10 or $20) can be used like cash in many places. In Europe this is not so, and you have to go via a money changer of some sort in most cases, which involves charges again.

I always look out for an ATM soon after arrival at the airport or wherever in Europe. I usually have a few Euro notes and coins from previous visits as well.

Before you concern yourself too much with the interest costs I would do the maths. Don't forget to offset the cost with the interest earned with your money being held in a bank account before being used to pay off your credit card, and like others have said you can always pre-load your cc but this would mean you have a current zero balance and only use it for cash advances to maximise the benefits.

The rules are that you must pay off your credit card in full where cash advance/Euros have been taken. If this is a problem then try to use different credit cards, one for purchases and one for cash advances and make sure you pay the cash advances cc first, maybe partner could also get a nationwide cc.

To minimise the cash you use try to pay for all purchases especially meals with credit cards and use the cash advance in Euros just for basic purchases such as drinks/tips etc.

Also there is a 1.5% minimum 1.50 transaction cost so to minimise costs withdraw at least 150 in each transaction.

Ron,

check out M&S I found they had the best deal for foreign money. But dont use any credit card to buy it in the UK, use a cheque or debit card. And try to use as little cash whilst you are abroad, instead buying things with the card.

Use a Nationwide Flex (ie current) account for cash withdrawls.

Yup.

They mean use them for purchases abroad. Not for buying foreign currency in the UK, using credit cards for that is daft unless you need to borrow.

Be aware that Nationwide have stopped cashback on foreign purchases. Still probably the best card to use though, since there is no exchange rate markup (saving you the typical 2.75% charge).

Possibly. The cash reward card now has only a 15 day statement date to payment date. Phone them up and ask when your statement date will be - they can change it if necessary. Or set up a DD to pay it, either in full or minimum payment.

Or pay with a debit card at Travelex?

But why get any in advance? Unless your arriving in the middle of nowhere in the middle of the night, just withdraw cash from the first ATM you see abroad. Any major airport/train station will have several ATM's.

For cash withdrawals abroad you are better off with a Nationwide flex account - as there is no cash advance charge and you don't get charged interest (unless you go overdrawn obviously). And like with the credit card - there is no exchange rate markup.

Oh, and watch out for dynamic currency conversion when you pay with your credit card (where the retailer charges you in pounds converted at a rip-off rate). Search the archives here and rec.travel.europe for more on this.

"Jane Tweedynn" wrote

No you can't - some cc issuers don't allow credit balances on their cards!

We are talking about the Nationwide credit card.

X-No-Archive: yes In message , Tim writes

So what do they do with the surplus dosh if one sends them a cheque for more than the amount outstanding?

HSBC/Mastercard don't have any problems with too much money. Their computer has discovered the + sign!

I often overpay cards - because I get refunds from my employer for items and pay that over before the item appears on the statement. I often have a running credit balance for a few days. Barclaycard told me that this would not alter the charges for cash advances - since they don't recognise that credit balance in those circumstances.

Perhaps the other poster was referring to card issuers "not recognising" credit balances in those situations?

"JF" wrote

Dunno - perhaps they don't cash it at all? If the t&c say that you aren't allowed to put the a/c into credit, then you sending (& them cashing) a cheque for more than the amount outstanding would contravene those t&c. So I suppose they may simply refuse to accept the cheque - in a similar manner to refusing a transaction that would put you over the limit (which would also be against the t&c, and hence they are able to refuse it).

Note that these issuers often say that a balance transferred from another card to them, which puts them into credit, will be returned to the original card...

"Wireless Reader" wrote

Nope - new T&C (HFC) as below :-

---------------

Important Changes to your Credit Card Agreement ...

...

Revised T&C

But neither clause explains what happens if you do. Perhaps their systems do give "free" cash advances with credit balances and they are trying to limit their exposure to this?