Nationwide revamps credit card with new overseas perk

Posted by Erica Brooks

Only those who also use their card in the UK will be able to use it fees-free in other countries as they build up an overseas allowance for every pound spent here (see the Cheap Travel Money guide).

The society offered fee-free use anywhere overseas until 2009. Many got its card purely for that perk but it won’t now be possible to use the new plastic exclusively for commission-free overseas purchases.

The card will also offer the second-best deal on 0% balance transfers.

Nationwide will launch the new Credit Card on Tuesday replacing its current Gold and Classic cards, which are still available until then.

Old versus new

The current cards available until close of business on Monday offer:

0% on balance transfers for 15 months (3% handling fee) and 0% for 3 months on purchases

Commission free spending in Europe (including Turkey) and Israel

A 1% fee in other countries

Extended 12-month warranty on many electrical items

16.9%(Gold) or 19.9% (Classic) representative APR

Existing Gold or Classic cardholders are unaffected by the withdrawal of applications to new customers.

The new card gives:

Either 0% on balance transfers for 17 months (2.95% handling fee) and 0% for 3 months on purchases; or 0% for 6 months on purchases

A complex commission free spending abroad system. For every 5 spent in the UK you receive 1 commission-free abroad. Extra overseas purchases will be charged a 2% commission

15.9% representative APR

The ability to get an indication of the likely APR before applying to prevent customers making a formal application, if unnecessary, which can hinder the chances of getting future credit

Is the new deal worth it?

The new overseas perk cannot beat the top spending abroad plastic, the Halifax Clarity card, which offers fee-free spending overseas regardless how much you spend in the UK. Unlike Nationwide’s 2.5% fee, there is a no charge for using an ATM abroad while interest charged on cash is low (from 12.9% rather than 27.9%).

There is are better cards for 0% on purchases such as the 13-month interest-free deal from Tesco (see the 0% Credit Card guide).

The balance transfer offer is second best to Barclaycard’s current best buy balance transfer card (0% for 17 months with 2.9% fee and a further 20 off the fee in some cases) but provides an alternative option for those who want to transfer from a Barclaycard (see the Cheap Balance Transfers guide).

However, the extended warranty perk will disappear.