Halifax launches £20 cashback on Clarity travel credit card - is it a good deal? - Which? News (2023)

Halifax is offering £20 cashback to new customers who take out its Clarity credit card with any purchase made in the first 90 days of opening an account.

The Halifax Clarity credit card is a top travel credit card that has no fees on overseas spending, so it's a good an option if you're looking for a cheap way to spend abroad.

Here, Which? explains what you need to know about the offer, how the card compares, plus how else you can save on holiday money if you're not keen on taking out a travel credit card.

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What does the Halifax Clarity credit card offer?

The Halifax Clarity credit card is a regular pick in our guide to the best travel credit cards, as it charges no fees for foreign transactions or cash withdrawals. The card has a representative APR of 22.9% (variable) and uses the Mastercard exchange rate.

You won’t be charged interest on your spending abroad, provided that you pay off your card in full each month. However, you’ll be charged interest on cash withdrawals from the moment you make them. This means you’ll still pay some interest even if you pay off your card in full.

Halifax is offering a limited time cashback promotion allowing new customers to get £20 cashback with any purchase (of any amount) made in the first 90 days of owning the card. The cashback will be credited to your account within 180 days.

(Video) The Best Travel Credit Cards 2022 (UK) | Halifax Clarity & Barclaycard

  • Find out more: read our Halifax credit card reviewto see how customers rate the provider for customer service, statement clarity and transparency of charges.

How does it compare?

The Barclaycard Rewards Visa is another competitive travel credit card.

It also has no foreign transaction or cash withdrawal fees, and you get Visa's exchange rate. Unlike the Clarity card, it charges no interest on cash withdrawals, as long as your card is paid off in full each month.

The card also pays 0.25% cashback on your everyday spending (credited annually or on your request), and has a representative APR of 25.9% (variable).

Another perk of the card is that you can get up to five months of Apple Music, Apple TV+, Apple News+ and Apple Arcade for free.

  • Find out more:best travel credit cards

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Halifax launches £20 cashback on Clarity travel credit card - is it a good deal? - Which? News (1)

How else can you pay abroad?

We've rounded up other ways you can pay abroad if you don't fancy taking out a travel credit card.

(Video) £300/50,000 welcome Avios via Barclaycard + more | May 2023's UK Credit Card offers update

Use a fee-free debit card

A fee-free debit card is the cheapest way to spend while you’re abroad - you even get a near-perfect exchange rate through the Mastercard or Visa networks.

The leading banks are Chase Bank and Starling, where both spending and cash withdrawals abroad are fee-free, with no limits. Chase also offers 1% cashback on purchases for a year.

All of these accounts take minutes to open, and while your physical card will take a few days to arrive, you can add a virtual card to Apple Pay and Google Wallet immediately.

  • Find out more:best debit cards to use abroad and on holiday

Prepaid cards

While predicting exchange rates is extremely difficult, you could opt to change half your holiday money into foreign currency in advance, if it makes you feel more comfortable.

Wise and Revolut are two prepaid card providers that allow you to do just that. You can exchange and hold money, in up to 50 currencies with Wise and 29 with Revolut, in an online account.

You’ll pay no fees to exchange with Revolut on weekdays, or 1% on weekends, although on the basic free plan you can only exchange £1,000 a month.

When we checked, Wise charged between 0.43% for pound-to-euro conversion, or up to 0.86% for other currencies.

Note that you won’t earn interest on your balance, and if you convert unused currency back, you’ll have to pay the fee again.

Your money isn’t covered by the Financial Services Compensation Scheme (FSCS), but under e-money regulations it's ringfenced from creditors should the provider go bust.

  • Find out more: best prepaid cards

Foreign cash

The cheapest way to get foreign cash is to withdraw it at your destination, using one of the above-mentioned debit cards. But in many instances you’ll need some cash to hand when you arrive, such as to pay for a taxi.

Compare bureau de changes online: moneysupermarket.co.uk is one of the larger comparison sites. Thomas Exchange is one of the more established providers, although you’ll see supermarkets including Asda, M&S, Sainsbury’s Bank and Tesco crop up with good rates occasionally.

You’re usually best off ordering online - the larger sum the better - than collecting in-store, to access better rates while avoiding delivery costs.

  • Find out more: buying travel money online

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Halifax launches £20 cashback on Clarity travel credit card - is it a good deal? - Which? News (2)
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5 things to consider with holiday money

When picking the best way to pay on your next holiday, make sure you consider these issues.

Cards for car hire

Many car hire companies won’t accept debit cards or prepaid cards for holding funds until you return the vehicle.

While you could use a regular credit card for pre-authorisation - which shouldn’t by itself trigger a fee - using a travel credit card means that, should anything go wrong, you won’t have card charges adding insult to injury.

Smartphone reliance

What all the fee-free debit card providers have in common, along with the prepaid cards, is a reliance on smartphones.

If you don’t have one, consider Metro Bank, which offers a credit card with free spending and cash withdrawals in most of Europe, and you can apply and get the card printed in a branch.

Double conversions

When paying by card, always opt to pay in the local currency, and if you’ve not been given the choice, ask the retailer why not.

(Video) Best Cashback Credit cards in the UK for 2021

Paying in pounds will mean a local bank does the conversion - not necessarily at the best rate - and often adds a fee.

Local cash machine charges

Don’t expect to find free cash machines abroad, but avoid high-cost ones, such as at airports, and instead use cashpoints at local bank branches.

As fees are often a flat figure, it makes sense to withdraw all the holiday cash you think you’ll need at once.

Inactivity fees

The prepaid card providers we mention don’t charge inactivity fees, but many other providers do if you don’t use your card for several months.

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Halifax launches £20 cashback on Clarity travel credit card - is it a good deal? - Which? News (3)

Which? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative of the following: 1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance products (FRN 610689). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd. 2. LifeSearch Partners Limited (FRN 656479), for the introduction of Pure Protection Contracts, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386. 3.Which? are an Introducer Appointer Representative of Optimise Media Limited (FRN 313408), for the introduction of HSBC Group, who are authorised and regulated by the Financial Conduct Authority to provide credit brokering activity. Optimise Media is registered in England and Wales to Exchange Street Buildings, 35-37 Exchange Street, Norwich, England, NR2 1DP and company number 04455319. We do not make, nor do we seek to make, any recommendations on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners. If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer.

(Video) Barclaycard Rewards Credit Card vs American Express Platinum Cashback Everyday Credit Card


Do you get cashback on Halifax Clarity credit card? ›

The Halifax Clarity credit card. Charges the same interest rate on everything you buy. This helps you keep track of your spending and borrowing costs. You could enjoy £20 cashback (conditions apply) and no foreign exchange fees.

What is the interest rate on a Halifax Clarity card? ›

Halifax Clarity Card: 19.9% APR, No fees overseas, 1 big catch.

What is the Halifax cashback card? ›

Cashback Extras is an online service that enables you to receive cashback offers from participating merchants. To be eligible for the scheme you need to be over 18, have a Halifax debit card and/or credit and be signed up to Online Banking.

How long does it take to get a Halifax Clarity card? ›

Your new credit card will follow, arriving within seven working days.

Are cashback cards worth it? ›

Cash back rewards cards are worth it because they can help you save money as long as you pay off your balance each month. It is also worth noting that the best cash back credit cards with the highest rewards rates and signup bonuses sometimes have annual fees.

Which retailers offer Halifax cashback? ›

Participating retailers include Morrisons, Ocado, New Look, O2, Domino's and Argos – each offering between 5 and 15 per cent cash back on purchases. Halifax estimates Cashback Extras customers will be able to earn £100 in cashback on average per year – given the average cashback rate of 10 per cent.

What is a good interest rate for a credit card? ›

A good APR for a credit card is anything below 14% -- if you have good credit. If you have excellent credit, you could qualify for an even better rate, like 10%. If you have bad credit, though, the best credit card APR available to you could be above 20%.

How much interest will I pay on 3000 credit card? ›

For example, let's assume a credit card with a $3,000 balance carries an APR of 20%. To determine how much interest will build up daily, take the $3,000 balance, multiply by 0.2, and then divide by 365. You'll get a total of 1.64, meaning you'll pay $1.64 per day in interest for carrying that $3,000 balance.

How much does Halifax charge to use card abroad? ›

We will charge you a foreign currency transaction fee of 2.99% of the amount of the transaction. This is a fee for currency conversion.

What are the disadvantages of a cashback card? ›

There are a few drawbacks to a cash-back rewards card, including a higher-than-usual APR, having to wait to access your cash-back funds, and a cap on how much you can earn each year. Also, when it comes to travel rewards such as airline miles, sometimes the miles are worth more than the cash.

Is Halifax a good bank? ›

Halifax has a Trustpilot rating of 1.6 but here at The Grade we like to dig a bit further. When you exclude reviews the company has itself invited and look just at organic reviews, the average score is actually 1.46.

What credit limit should I have? ›

There's no magic amount of credit that a person “should” have. Take as much credit as you're offered, try to keep your credit usage below 30 percent of your available credit and pay off your balances regularly. With responsible use and better credit card habits, you can maintain a good credit score.

How much cash can I withdraw on a Halifax Clarity card? ›

A cash transaction fee of up to five percent could apply, so check your latest credit card account terms and conditions to understand the potential costs. Is there a withdrawal limit? At Halifax, the daily ATM withdrawal limit is £500, but other lenders and ATM operators can set their own limits.

Do I need to tell Halifax Clarity card I am going abroad? ›

You no longer need to tell us. You no longer have to tell us when you are travelling abroad. Our fraud and security systems are always on the lookout for suspicious activity on your accounts meaning you can relax when you are away making going abroad stress free.

Can you pre load a Halifax Clarity card? ›

Clarity is a credit card so can't be pre-loaded. You can't 'pre-load' a Clarity card, but what you *can* do is to overpay by - say - £200 the month before, effectively putting the crd into credit. Once in 'credit', you can't get charged interest on any cash withdrawals as you are just drawing down,back to zero.

Does cash back affect credit score? ›

Cash advances can impact credit scores like any other loan. While they don't inherently hurt your credit score, they can lead to future credit issues. For example, using too much of your available credit or paying your cash advance back late can ding your credit score.

Is cash back free money? ›

No, cash back is not free money. You need to make a purchase with your card to earn cash back. Cash-back rates typically range from 1% to 5%, so you will still be paying for the majority of your purchase out of pocket.

How much cashback is good? ›

Choosing a flat-rate cash-back credit card

Generally, a 2% card wins out over a longer period and benefits high spenders (assuming the 2% cash back is unlimited.) But the 1.5% card with a bonus is better in the short term and better for low spenders. If it's a tie, think short-term.

How do I get my money back from Halifax? ›

Please follow the steps below in order to make a claim using the Mobile Banking app.
  1. Sign into our Mobile Banking app.
  2. Go to your statement page and tap the transaction you would like help with.
  3. Select 'Help with this transaction'
  4. Select the question 'Paid for an item or service and have an issue? '

Can you use cashback with Amazon? ›

The cashback in Amazon Pay balance can be used once it has been credited to the account. This would be within 72 hours after the product ships.

Is 24.99 a high interest rate? ›

A 24.99% APR is not good for mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay and what most lenders will even offer. A 24.99% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit.

What interest rate can I get with a 790 credit score? ›

Buying a home with an 790 credit score

To illustrate this, as of Nov. 1, 2022, the average mortgage APR in the U.S. was approximately 7.1%. Borrowers with a 760 FICO Score or higher received an average APR of 6.61%, while those in the 700-759 range had an average APR of 6.83%.

What interest rate can I get with a 735 credit score? ›

Borrowers with an 735 credit score are considered to be relatively low risk when it comes to paying money back. Statistical default rates range from 4.6% for consumers in the 660-679 FICO Score range to 1.9% for those in the 720-739 range.

What is the minimum payment on a $5000 credit card balance? ›

The minimum payment on a $5,000 credit card balance is at least $50, plus any fees, interest, and past-due amounts, if applicable. If you were late making a payment for the previous billing period, the credit card company may also add a late fee on top of your standard minimum payment.

How much should you spend on a $3000 credit limit? ›

What's Your Credit Card Balance To Limit Ratio?
Credit LimitFair Utilization (40%)Good Utilization (30%)
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6 days ago

How much of a 3000 credit limit should I use? ›

NerdWallet suggests using no more than 30% of your limits, and less is better. Charging too much on your cards, especially if you max them out, is associated with being a higher credit risk. That's why running up your cards will lower your score.

What are the disadvantages of using a credit card abroad? ›

Disadvantages of an overseas card

For a start, many overseas credit cards do not offer interest-free deals on purchases, which means it's important to watch what you spend on your card on holiday. If you are unable to pay off your balance in full each month you will usually be charged interest.

How do I avoid card charges abroad? ›

A good rule of thumb is to have the card charged in the local currency to avoid conversion fees and to choose a card that doesn't charge foreign transaction fees for all purchases made abroad. Cash withdrawals from international ATMs are also subject to fees.

How much are credit card fees when traveling internationally? ›

Foreign transaction fees generally range from 1 percent to 3 percent and tend to average around 3 percent of each transaction. Paying around $3 per $100 you spend may not sound that expensive, but these fees can add up if you're making a lot of purchases with your credit card.

Why do cards ask if you want cash back? ›

This system is used to prevent cashiers surreptitiously adding cashback amounts to a transaction and keeping the money for themselves (or accusations of same), but more importantly, to ensure that customers cannot return to the store with allegations that the attendant "forgot" to hand over the requested cash.

Why cashback not approved? ›

Reasons for Cashback rejection

Your order was canceled, exchanged or returned. For travel merchants, it will be cancellations, no-shows or amendments post-online booking. You clicked on links on third-party offer sites before or during your purchase process.

Why cash is better than card? ›

By paying for purchases with cash, you avoid interest charges on those new purchases. Additionally, if you have triggered a penalty APR on your credit card, it may be wise to pay with cash as new charges could accrue nearly 30% in interest charges.

How many customers has Halifax lost? ›

While some banks made gains of tens of thousands, others lost that amount. TSB made a net loss of 13,120 switches, while Barclays lost 12,851 and Halifax lost 11,939.

What bank is the same as Halifax? ›

Lloyds Banking Group incorporates many household names including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows.

Which network is best in Halifax? ›

Fastest Mobile Networks Canada 2020Halifax Winner:

Telus narrowly beat Bell in our tests in Halifax, which brought us all around the sprawling metro area.

What is considered a very high credit limit? ›

A high-limit credit card typically comes with a credit line between $5,000 to $10,000 (and some even go beyond $10,000). You're more likely to have a higher credit limit if you have good or excellent credit.

How much of a $2000 credit limit should I use? ›

What is a good credit utilization ratio? According to the Consumer Financial Protection Bureau, experts recommend keeping your credit utilization below 30% of your available credit. So if your only line of credit is a credit card with a $2,000 limit, that would mean keeping your balance below $600.

How much should you spend on a $500 credit limit? ›

You should aim to use no more than 30% of your credit limit at any given time. Allowing your credit utilization ratio to rise above this may result in a temporary dip in your score.

Is a clarity card a Mastercard? ›

How does it work? You can use your Halifax Clarity Card online and instore - anywhere Mastercard is accepted. You can also make ATM withdrawals, but some ATM providers do apply charges.

Is it better to use debit or credit card abroad? ›

Credit cards are widely accepted around the world and can also serve as a deposit, e.g., when renting a car. Credit card transaction fees are typically higher than debit cards. Most banks charge an average conversion fee of 2% for a credit card payment, that's 1% more than for a debit card payment.

Is Halifax Clarity card free to use in USA? ›

Good to know

Although we won't charge you, some ATM providers may charge a fee for cash withdrawals. Purchases at home and overseas over £100 and up to £30,000 are covered by Section 75 of the Consumer Credit Act 1974.

Should I tell my bank I'm traveling internationally? ›

Always tell your bank when you're going abroad

When your bank sees that you're using your card in a different country, it may interpret this as unusual or suspicious activity. If you haven't notified them that you're travelling, they may assume that your card has been stolen and block it for your protection.

Can you add Halifax Clarity card to Apple Pay? ›

1. Open Settings and add new card. Open your iPad settings then select Wallet & Apple Pay and select Add Card.

Can you put money on a pre paid card with a credit card? ›

You can load a prepaid card with a credit card by using to pay for the transaction. To reload a prepaid card with a credit card, if you have no other payment options, you can get a cash advance on your credit card.

Can you use Halifax Clarity card on Apple Pay? ›

Apple Pay works with the majority of Halifax debit and credit cards.

Can I get cash back on my credit card? ›

Getting cash from a credit card is called a cash advance. You can typically get a credit card cash advance at an ATM or bank branch or by using a special check. Cash advances may come with fees and have higher interest rates than other credit card purchases do.

Can you have cashback on a credit card? ›

Cashback credit cards offer you the chance to earn cash from the money you spend, by paying you back a percentage of what you spend or giving you reward points. They only make sense if you pay off the balance in full each month and never go over your limit.

Does withdrawing cash from credit card affect credit score? ›

Withdrawing cash (also known as a cash advance) from a credit card can have a negative impact on your credit score. Lenders may look at this unfavourably as it can be an indication of poor money management especially if there are multiple cash advances in a short period of time.

How much does Halifax charge for withdrawing money abroad? ›

Using cash machines for non-sterling cash withdrawals

We will charge you a foreign currency transaction fee of 2.99% of the amount of the transaction.

Is it better to exchange money or use credit card? ›

Credit cards typically provide better exchange rates than what you'll get from ATM machines and currency stands. Depending on your card issuer, your purchases might automatically qualify for insurance. This coverage doesn't simply apply to consumer goods — it also covers travel delays and lost luggage.

What are the disadvantages of cash back credit cards? ›

There are a few drawbacks to a cash-back rewards card, including a higher-than-usual APR, having to wait to access your cash-back funds, and a cap on how much you can earn each year. Also, when it comes to travel rewards such as airline miles, sometimes the miles are worth more than the cash.

Can I transfer money from credit card to bank account? ›

You can transfer money from credit card to bank account using offline methods such as signing a cheque, RTGS, NEFT or through an ATM.

Does cashback count as a withdrawal? ›

Cash back still counts toward your daily debit purchase limit, but this is generally higher than your ATM withdrawal limit. If none of these options work out for you, you could get a cash advance through your credit card. You'll likely want to see this as an absolute last resort, however.

Why are Halifax customers owed money? ›

Around 200,000 Lloyds, Halifax and Bank of Scotland customers are owed payments averaging around £30 each, due to historic administrative errors starting in 2012 which may have led to them not switching to better products.

What is the Halifax 30 day hold? ›

Take 30 days to get some help and advice

You can ask us to put a hold on your account for 30 days. This will give you the time and space to get some independent help and advice, and make sure your priority payments are up to date. You won't be able to use your account while this hold is in place.

How do I transfer money from Halifax to another bank? ›

  1. Mobile Banking app guide. Choose 'Pay & transfer' Choose 'Pay & transfer' Select 'Pay & transfer' at the bottom of the app. Select your account. ...
  2. Online Banking guide. Choose 'Payments & transfers' Choose 'Payments & transfers' Select 'payments and transfers' next to the relevant account. Select your account.

Why is cashback good? ›

Cashback cards can offer a great financial kickback for borrowers, as long as you pay off the debt in full each month and never carry a debt balance. If you can clear the balance each month, you can make the most of your cashback credit card by switching as much of your day-to-day spending on to the card as possible.

What's the point of cashback? ›

This money is usually paid out in the form of cash, discounts, or rewards points. Cashback programs are often used as a marketing tool by retailers to encourage customers to make purchases.

What does it mean when a credit card gives you cashback? ›

Credit card cash back rewards are bonuses provided to credit card customers when they use their cards to make purchases. Cash back rewards can take the form of dollars or points — with points typically redeemable on an online marketplace operated by the card issuer. Cash back rewards operate on a percentage basis.


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