Ain't Nobody Here Posted May 7, 2012 Share Posted May 7, 2012 I'm applying for a Halifax credit card for our summer holiday to the US (it has no fees/loading for overseas spending or cash withdrawals). I'm also getting an extra card for OH. YS (17) is going to Bulgaria in June for a week and I'm pondering how to give him spending money. Would it be a really bad idea to let him use one of the Halifax cards solely for use in cash machines? He would only need the PIN number and would be told not to use it as a credit card. (He's very trustworthy and would be too scared to try to use it that way anyway .) Quote Link to comment Share on other sites More sharing options...
Olly Posted May 7, 2012 Share Posted May 7, 2012 I think it depends on the degree of trust you place in him ... not just about not using it as a credit card, but about how much he draws out! It sounds as if he's sensible, as long as he won't succumb to peer pressure - it's probably safer than carrying cash. Will he definitely be able to access cashpoints where he is going? Quote Link to comment Share on other sites More sharing options...
Cinnamon Posted May 7, 2012 Share Posted May 7, 2012 Why not get one of those cards that come pre loaded with money,that can then be withdrawn. If he draws it all out,you can then top it up your end. Is he too young to apply for his own credit card? it may seem a bad thing to do,but youngsters need to get onto the credit ladder if they are ever going to be able to take out an ISA,get a mobile contract in their own name or myriad other things. Believe me,it is really important that they build up a good credit rating....it took 9 months for my 19 year old to be able to get the mobile contract changed to her name If not how about his own bank account - has it not got a debit card that he can use to withdraw from when he is away? You could keep an eye on his online banking account & top it up as necessary. Quote Link to comment Share on other sites More sharing options...
Chicken shack Posted May 7, 2012 Share Posted May 7, 2012 I wouldn't give any of my children my cards, not because I don't trust them but if it is lost or stolen and is used the card company will not pay out. The first thing they ask you is 'Has any one had access to your card'? I am speaking from expeirience. My card was used to rack up over £4000 pounds after I used it to get a takeaway at Pizza Hut. It took over six months to sort out and as I usually paid it off each month by direct debit I went into overdraft as a reslult. They caught them and they were found guilty but it was very stressfull. Quote Link to comment Share on other sites More sharing options...
jess1merlin Posted May 7, 2012 Share Posted May 7, 2012 I worked for a bank for 25+ years and I would think you would have a problem if anything went wrong ie. the card was scammed. The bank would ask if the card was always in your possession and if anyone else had access to the pin. Could he not take travellers cheques, I know you will have to pay a fee to cash them but they can be replaced if they are lost. He would need to take his passport with him to cash them. Quote Link to comment Share on other sites More sharing options...
Lewis Posted May 7, 2012 Share Posted May 7, 2012 Is he too young to apply for his own credit card? it may seem a bad thing to do,but youngsters need to get onto the credit ladder if they are ever going to be able to take out an ISA,get a mobile contract in their own name or myriad other things. Believe me,it is really important that they build up a good credit rating....it took 9 months for my 19 year old to be able to get the mobile contract changed to her name No idea if I have a credit rating, think my phone contract is in my name and have a Student Loan if that counts but don't have a credit card... Is it worth getting one, buying a couple small things and paying it off straight away (Direct Debit?) just to get a credit rating? (Sorry to hijack the thread Vicki!) Quote Link to comment Share on other sites More sharing options...
Cinnamon Posted May 7, 2012 Share Posted May 7, 2012 Yes,that is exactly what we did,as advised by the bank when she upgraded her account from a normal one to a student one. She uses it from time to time still & has a payment thingy set up so the thing is paid off in full each month. Vodafone were very picky about her phone contract & she had to have a credit check each time we tried to get her phone transferred from my name to hers. She failed because she didn't have any sort of credit rating,then we had to wait 3 months to try again Quote Link to comment Share on other sites More sharing options...
rachel19 Posted May 7, 2012 Share Posted May 7, 2012 My mum got a credit card on her account with my name on it so I could use in emergencies if i was stuck or whatever - that way I had access to the account but the card was in my name if anything went wrong. Worked for us and I was trusted not to abuse it. Think i only used it twice but ws nice to know it was there in case i got stuck. Quote Link to comment Share on other sites More sharing options...
LolaLayla Posted May 7, 2012 Share Posted May 7, 2012 I am going to get YS the prepaid card that has been mentioned. Thomas Cook have leaflets about it but it may not be the best one so I will need to investigate. I was going to give him some money on the card and some cash incase he loses it. I believe it can be replaced if it is lost but I suppose it may take a day or two. I will not be giving him access to too much cash as my DD told me a friend of hers seemed to be the one who had to help all her friends out on holiday. They spent all their money but knew she had access to more She felt she couldn't say no to her 'friends' cash requests Quote Link to comment Share on other sites More sharing options...
Forestchook Posted May 7, 2012 Share Posted May 7, 2012 Please can I advise you not to withdraw cash on a credit card, ever! You will get charged interest from the moment you take out the cash and its the last thing to be paid off too. Well, thats what I have always understood anyway. Hope you get everything sorted. N Quote Link to comment Share on other sites More sharing options...
The Dogmother Posted May 7, 2012 Share Posted May 7, 2012 I'd get the pre-paid card too; a friend is going through this with her teen, and has done some research - it works out tons cheaper than arranging money transfers and if the credit card got stolen or cloned (which is rife in eastern Europe) then you'd stand to lose a lot of money. Quote Link to comment Share on other sites More sharing options...
Ain't Nobody Here Posted May 8, 2012 Author Share Posted May 8, 2012 Thanks guys . You've really helped me make up my mind - a money card it is . Forestchook, what you say is generally true but I think the Halifax Clarity is ok as there's no fee at the cashmachine or any loading fee. We'll be back within a few days too so can pay the card off before any interest accrues (the interest rate is also about half what other cards charge). Martin Lewis of Moneysavingexpert rates it highly too . Quote Link to comment Share on other sites More sharing options...
LolaLayla Posted May 8, 2012 Share Posted May 8, 2012 I was going to see what Martin said about the prepaid cards. I really love his website Let me know which one you go for. I think there is something with some of them if you don't use them after a period of time there is a charge but I could be talking a whole load of rubbish......it has been known Quote Link to comment Share on other sites More sharing options...
WitchHazel Posted May 8, 2012 Share Posted May 8, 2012 Please can I advise you not to withdraw cash on a credit card, ever! You will get charged interest from the moment you take out the cash and its the last thing to be paid off too. Well, thats what I have always understood anyway. Hope you get everything sorted. N If you're travelling abroad then, with the right credit card (wone with no additional loading) AND providing you ONLY use it for cash withdrawals AND don't have any other spend on it AT ALL, then it is a good way to get cash. You have to be very disciplined. The problems arise if you already have a blance on the credit card, or you use the credit card to make any purchases while you are using it as a cash withdrawal card. That's when it becomes very difficult to actuakly get the balance paid off because of the interest on the cash withdrawl. (As you say, the cash is the last thing to be settled, and is racking up interest even when you think it isn't). We have two credit cards which we use when on holiday. One is or purchases, and the other is for cash withdrawls only, I actually scrawled CW in permanent marker on the cash one, just so I wouldn't use it by accident. When we go away for long trips (those were the days!), we used to withdray £x every few days, and straight away I would log in to on line banking and immediately send money to the credit card to reapy the cash withdrawn plus any fees and interest for the three days it took for my payment to reach my credit card account. (I originaly tried sending moeny before we went, so that the card had a credit balance, but they decided I might be a money launderer and the payment was bounced back). Quote Link to comment Share on other sites More sharing options...
Duncan08 Posted May 8, 2012 Share Posted May 8, 2012 My son is 13, and is an internet shopper. It drives me mad because he says he will give me the money, then I lose track So for his 13th Birthday I gave him £200 on an Orange Cash card. it costs a fiver, and you have to watch how you add money on to it otherwise you can get charged. I do it by bank transfer. He can check his balance by phone and internet as well as as cash machines. It is acceptable anywhere that takes mastercard. He has it on his iTunes account, (I deactivated mine after a few unauthorised downloads) and I can top it up with his pocket money. Its also "contactless" not entirely sure how that works we only have about three outlets that take it like that. Works really well for both of us. Quote Link to comment Share on other sites More sharing options...
