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

FAQs

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.

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

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.

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

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.

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.

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%.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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%.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

Fastest Mobile Networks Canada 2020Halifax Winner:

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

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.

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.

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.

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.

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.

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.

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

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.