So on the basis of MSE advice I have applied and been accepted for the Halifax Clarity card, which I intend to use to support my foreign travel. My plan is to access my online banking and immediately pay off any purchase spending so to avoid the daily interest rate (18%). However, I was thinking that the alternative would be to overpay into the card before I go (say for example £500) and go into negative balance, that way avoiding the daily interest fee. If I have money left, it’s then a straight cash withdrawal back in the UK, but if I need more I can ‘overpay’ some more into the card when I’m away. I understand banks will refund any negative balance but probably not for a couple of months, by which time I’ll be home.
Is this a good idea? Will it work?