Review of Halifax Clarity Card

Written by Karen Bryan

Halifax clarity cardIf you travel abroad regularly, a Halfax Clarity Card is one of the cheapest ways to make withdrawals from cash machines and pay for transactions. You pay no fees on overseas cash machine withdrawals or transactions, the only charge is interest on the money you withdraw. As I pay off my full balance every month, I’ve paid between 1 -2% in interest on overseas cash withdrawals. The amount you pay in interest will depend on the date of the withdrawal and on which date you make your credit card payments. Using a Halifax Clarity Card in this way only makes sense if you pay off the full balance every month, otherwise you can rack up a lot in interest payments.

After I’d had my Halifax Clarity Card for a few months, Halifax wrote to me to say they were upgrading me to a Rewards Clarity Card as I had a qualifying Halifax Reward Current account.  This means that as long as I pay at least £1000 a month into my current account and spend at least £300 a month on my Halifax Clarity Card, I’ll receive a £5 tax free reward that month. I can’t see anything about reward benefits for the Clarity Card on the Halifax site, but I have received the £5 for each month in which I’ve spent more than £300.

The Halifax Clarity Card currently (October 2011) has a fairly low, by credit card standards, interest rate of 12.9%.; e.g. the Santander Credit Card is charging 17.9%. As there is no fee for balance transfers to the Clarity Card, it could save you money by transferring a balance from another credit card charging you a higher rate of interest on your balance. Although you have to bear in mind that the interest rate on the Clarity Card could change. Some credit cards offer a zero % interest rate on balance transfers, so that could be a better deal. For example, the Halifax Balance Transfer Card offers zero % interest on balance transfers for 22 months, but there is a balance transfer fee of 3.5% and the maximum transfer is £3000.

In summary, the Halifax Clarity Card is one the best cards for use abroad, as long as you pay off the full balance every month. If you qualify for the £5 reward that is nice little bonus.

Read more about how to use credit cards to your advantage.

Warning

This article is based on my own personal research, usage and understanding of the product.  Please read the current terms and conditions very carefully before signing up for any financial product.

One Response to “Review of Halifax Clarity Card”

  1. […] and easy way to find the best rate of exchange for your holiday cash. I’ll also be using my Halifax Clarity Credit Card which has no transactions fees when paying for goods and services […]