Halifax Clarity credit card review: is it good?

If you’re looking for a new credit card and you need one that is travel-friendly, the Halifax Clarity credit card could be a good pick.

It’s the bank’s dedicated travel credit card for UK customers, boasting zero foreign transaction fees when you spend abroad. But exactly how good is it? Find out everything you need to know in our helpful Halifax Clarity credit card review.

We’ll cover all the essentials, including interest rates, fees and limits for using your credit card in the UK. And of course, what using the Halifax Clarity card abroad is like. This includes exchange rates, charges and transaction limits. It’s all to help you make a fully informed choice.

And for an alternative way to spend overseas, make sure to check out the Wise debit card from the money services provider Wise. It’s not a credit card, but offers low-cost spending and cash withdrawals in 150+ countries worldwide, with no foreign transaction fees and only a tiny currency conversion fee*.

Halifax Clarity credit card review

Before we dive into the details, here’s your at-a-glance at the Halifax credit card:

Interest rate and fees

The Halifax Clarity card interest rate isn’t published online. This is because there’s no one APR, as the interest rate is determined on application. So, the rate you get if accepted for the card will depend on your circumstances.

But in positive news, there aren’t many Halifax Clarity card fees to worry about. There’s no monthly or annual fee, although there is a £12 charge for late payments.² This is standard among UK banks and other credit card providers.

Credit card limits

As with the APR, the credit limit for the Halifax Clarity card isn’t published. Again, as there’s no set limit and it varies depending on the applicant’s circumstances. To get your credit limit, you’ll need to complete the eligibility checker and then apply.

As for transaction limits for using the card, the only important one you need to know about is a daily ATM withdrawal limit of £500.³

Cash withdrawal

The Halifax Clarity card is quite unique, as it’s one of only a few travel credit cards that doesn’t charge you a fee for cash withdrawals. For most credit cards, there’s nearly always quite a high charge for taking out cash.

But with this particular card, you can withdraw up to £500 a day³ when outside of the UK and the bank won’t charge you a fee. You’ll just need to watch out though for ATM operators fees. Look for ATMs offering free withdrawals - any charges should be displayed on the screen before you confirm the transaction.

Another crucial thing to remember is that interest on Halifax Clarity card cash withdrawals will start accruing right away. This is different to purchases, where you usually have a limited interest-free grace period before interest is added.

Where can you use your Halifax Clarity credit card?

The Halifax Clarity credit card is a Mastercard, which is one of the major debit and credit card providers along with Visa and American Express. This means that its cards are accepted in many countries across the world.

According to Halifax, you can use its debit and credit cards in over 26 million locations worldwide.⁴

You can also use your Clarity card for shopping and spending online, and for withdrawing cash at ATMs.

Can you use your Halifax Clarity credit card with the app?

Yes, the Halifax Clarity card can be managed with the bank’s mobile banking app. Within the app, you can:⁵

• View your card details, including your PIN
• Freeze your card if you think it’s been lost, stolen or used fraudulently
• Report your card lost or stolen
• Order a replacement card
• Change your contactless limit.

Does Halifax offer a credit card balance transfer?

Halifax does offer balance transfers on its credit cards, but not on the Clarity credit card. If you want the option to move a balance over from an existing credit card, you’ll need to apply for a specialist Halifax balance transfer card.

Verdict: Is the Halifax Clarity credit card good?

Yes, it’s a pretty good pick, especially as a travel-friendly credit card. It’s great that Halifax charges no foreign currency transaction fees, especially on cash withdrawals. There’s also no annual or monthly fee to get the card.

The only drawback is that it’s not possible to see APR and credit limits upfront, without first applying. And even then, once you’ve applied and got your personalised rate and limit, it might not be what you expect.

Using your Halifax Clarity credit card abroad

If you’re interested in using the Clarity card for holiday spending abroad, read on for all the essentials you need to know.

With Halifax Clarity, there’s no need to notify the bank when you’re going abroad.⁴ You just need to make sure your credit card is activated.

Charges

As it’s a travel credit card, the Halifax Clarity card doesn’t have charges for foreign currency transactions - not even cash withdrawals. The only charges you’ll pay are if you exceed your credit limit or are late making a payment.

Exchange rate

As well as fees, the overall cost of using your Halifax debit card abroad will also be affected by the exchange rate.

This is because you’re spending in a foreign currency, such as euros, US dollars, Japanese yen or Swiss francs. The UK bank account your card is linked to is denominated in GBP, so the currency has to be converted when you spend. And when this happens, exchange rates apply.

Halifax Clarity exchange rates are set by Visa, as it issues the card.⁶ You can check the latest Visa exchange rates for your chosen currency here.

Transaction limits

Halifax doesn’t say if there are any limits on purchases with the Clarity card. But for cash withdrawals, the most you can take out a day is £500.³

There’s also the contactless card limit in the country you’re visiting. The limit for one-tap spending is £100 in most places in the UK, but it can vary depending on the country and the retailer or merchant.

Wise – Money for here, there and everywhere

Comparing alternatives for low-cost international spending? It’s worth taking a look at the Wise card, from the money services provider Wise, as it’s tailor-made for travelling.

It’s the perfect holiday companion, as it’s contactless, works worldwide and is compatible with mobile wallets. Best of all, it has no foreign transaction fees, only a tiny, transparent currency conversion fee*. This could make it much cheaper than using a debit card issued by a bank.

You can use your Wise card to spend and withdraw cash in 40+ currencies, in 150+ countries worldwide. This means that there’s no need for separate cards for multi-destination trips - you can do it all with just the one card.

Here are all the advantages at-a-glance:

• Open a Wise account online for free
• Get a Wise debit card for a one-time cost of just £7
• No monthly fees
• No foreign transaction fees
• Automatically converts currency at mid-market exchange rates
• Works worldwide in over 150+ countries
• Withdraw up to £200 a month (max. 2 withdrawals) for free. Fee of 1.75% + 0.50 for withdrawals over this limit.

Sign up with Wise today 💰

And that’s it - our essential Halifax Clarity card review, so that you can work out if it’s the right option for you. We’ve covered it all, from fees and interest rates to transaction limits and much more. So, you should be all set to check it out and compare against other cards out there.

Sources used for this article:

Sources checked on 05-12-2023.