In fact, travellers will often pay overseas fees of between 2% and 3% just for the privilege of using their cards, while cash withdrawals can be even more expensive.
Available only through moneysupermarket.com and Halifax, the Clarity Credit Card has no charge for using it abroad, no fee for withdrawing cash and no fee to transfer a balance. There's even a cashback offer if you do move an existing balance across.
But is it the right card for you? We take a look.
What's the deal?
The Halifax Clarity Credit Card has one simple interest rate of 12.9%, no matter how you use it.
So, as a representative example, if you spend £1,200 at a purchase interest rate of 12.9% (variable) your representative APR will be 12.9% variable.
Unlike other cards that charge additional fees for withdrawing cash or overseas use, you would only ever pay the 12.9% interest rate.
In addition, if you make a balance transfer within the first 90 days, you'll receive a 2% cashback reward, capped at £60.
Existing current account customers can also earn a little extra. If you have a current account with the bank and pay in at least £1,000 every month, you could apply for the Halifax Rewards Clarity Credit Card.
Then, if you spend at least £300 on your card each month, you'd receive £5 cashback - on top of any cashback you've earned by transferring a balance. That means total potential cashback of £120 in the first year.
Any catches?
While there are no additional charges if you use this card to withdraw cash from an ATM, doing so can still cost you more than you might expect.
Unlike a purchase, where you have a number of days to clear the balance and avoid interest, cash withdrawals immediately attract interest at 12.9%. So it's still a good idea to avoid using this card to put money in your pocket and stick to using it for purchases alone.
Remember also that 12.9% is the representative rate; you could be offered a higher rate, depending on your borrower profile. Just 51% of customers have to be offered this deal.
Verdict
This is a fantastic deal for anyone who wants just a simple, straightforward credit card with no hidden charges or unexpected costs.
It's particularly good if you travel more than once a year as it can save you a small fortune in overseas charges and fees.
There are other cards with no foreign usage fees you may also want to consider, including the Post Office Platinum Card, with a representative APR of 16.9% variable.
If you're looking to transfer a balance then don't be too swayed by Halifax's offer of cashback, as remember you will be paying interest on the amount you've moved over.
Many cards offer new customers a lengthy 0% period on balance transfers, for example, the Barclaycard Platinum offers 17 months interest-free for a 2.9% fee. Even with the fee, you'll save money by avoiding interest for that long.
As a representative example, if you spend £1,200 at an annual interest rate of 16.9% (variable) your representative APR will be 16.9% variable.
Top tip
If you don't think you'd clear your balance in time to avoid interest, then an alternative option is to go for a card that offers a long-term low interest rate.
That way, you can clear the balance more slowly but with a less onerous burden of interest.
One of the best cards for this purpose is the Barclaycard Platinum Simplicity, which has no balance transfer fee and charges a low representative rate of just 7.9% (variable).
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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Contact moneysupermarket.com at Moneysupermarket House, St David's Park, Ewloe, Flintshire, CH5 3UZ. © Moneysupermarket.com Ltd 2011
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