Travel cash gets a lot cheaper with Halifax credit card

Halifax has launched a new best-buy credit card that it claims will significantly cut the cost of travel money for holidaymakers.

The Clarity credit card comes with no foreign exchange fees on all transactions, including all purchases anywhere in the world.

It also lets users access cash at foreign ATMs without paying withdrawal fees – although you will be charged interest even if you repay your monthly balance in full.

The rate for cash withdrawals is a low 12.9% APR (typical), which means two-thirds of those that are accepted will get it; the rest pay up to 21.9%.

Customers who have a Halifax Reward current account can apply for the Reward Clarity card and get £5 each month they spend more than £300 on the card.

Alex Higgs, credit card expert at Confused.com, says this offer has come just in time for the big summer getaway.

"Normally, when using a credit card abroad, customers would be charged a cash withdrawal fee and would accrue interest charges from the time of the withdrawal, so the traditional advice has been to use a debit card for cash withdrawals and a credit card for purchases whilst on holiday. The Clarity credit card is not only the cheapest credit card for cash withdrawals abroad but is cheaper than most standard debit cards, which charge £3 or 3% for a cashpoint withdrawal.

"For holidaymakers who need regular access to cash while abroad, this could be a real money-saver, and will help eliminate the need to carry large sums of cash just to save money on fees and charges."