Charles Schwab international ATM (worth the hard credit pull)

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fortfun
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Charles Schwab international ATM (worth the hard credit pull)

Post by fortfun » Tue Apr 24, 2018 12:44 pm

Traveling to Europe this summer. Looking into setting up a Charles Schwab ATM to avoid international ATM fees. Looks like they do a hard credit pull to set up the account. Is the damage done to my credit score worth the savings on ATM fees? I'll primarily pay for things by credit card but will have to pay Euros for a VRBO in Paris. Current Transunion credit score is 822, however, I've been churning cards for the bonuses (5 the past two years). I don't want this hard pull to put me over the top. Thoughts?

MnD
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by MnD » Tue Apr 24, 2018 12:49 pm

fortfun wrote:
Tue Apr 24, 2018 12:44 pm
Traveling to Europe this summer. Looking into setting up a Charles Schwab ATM to avoid international ATM fees. Looks like they do a hard credit pull to set up the account. Is the damage done to my credit score worth the ATM fees? I'll primarily pay for things by credit card but will have to pay Euros for a VRBO in Paris. Current Transunion credit score is 822, however, I've been churning cards for the bonuses (5 the past two years). I don't want this hard pull to put me over the top. Thoughts?
Just suppose this hard pull drops your score to 805. What sort of credit goodies do you think you'll be denied by a credit score in the low 800's?
I open and close accounts whenever it is to my financial or other advantage (which can from time to time be frequently) and have never noticed any significant impact on credit score. I think the key to good credit scores is to avoid drowning in debt and not being a deadbeat.

GAAP
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by GAAP » Tue Apr 24, 2018 12:52 pm

That card also doesn't charge for currency exchange - which can save a fair amount also.

Additional advantages: much larger daily withdrawal limits are available, and you can keep it from being used for debit purchases -- which protects against ATM card scanners.

Once you get a score over 800, the effective difference in your credit is basically nil.

I don't churn cards, but too me it's a no-brainer.

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bligh
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by bligh » Tue Apr 24, 2018 1:24 pm

The Schwab and Fidelity Checking accounts are excellent for frequent travelers. One additional benefit is the linked brokerage account. I keep some money invested in the usual US/International Total stock market ETFS using the no transaction fee ETFs of each of the brokerages. One of the benefits of this is that I can borrow against them on margin and instantly transfer the cash into the checking account to withdraw via ATM. I have never had to do this, but with it, I can travel knowing that, in an emergency, I can get access to much more additional cash if I need it. You could just maintain a higher checking account balance if you like, but it increases your exposure theft if your card is compromised, also your money is sitting there earning nothing.

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fortfun
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by fortfun » Tue Apr 24, 2018 1:41 pm

bligh wrote:
Tue Apr 24, 2018 1:24 pm
The Schwab and Fidelity Checking accounts are excellent for frequent travelers. One additional benefit is the linked brokerage account. I keep some money invested in the usual US/International Total stock market ETFS using the no transaction fee ETFs of each of the brokerages. One of the benefits of this is that I can borrow against them on margin and instantly transfer the cash into the checking account to withdraw via ATM. I have never had to do this, but with it, I can travel knowing that, in an emergency, I can get access to much more additional cash if I need it. You could just maintain a higher checking account balance if you like, but it increases your exposure theft if your card is compromised, also your money is sitting there earning nothing.
Does Fidelity waive international ATM fees? Thanks.

open_circuit
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by open_circuit » Tue Apr 24, 2018 1:43 pm

I set up a Schwab account before a recent international trip, just as you are considering. I found it very useful for foreign ATMs. I was not concerned about a credit pull and any impact on score. I recommend the account and card.

retire14
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by retire14 » Tue Apr 24, 2018 1:46 pm

I have used Schwab's ATM for my Asian trips and it worked great. I only opened the account for that purpose. I also have a Fidelity's ATM as back-up. It also reimburses ATM fees. And on occasion, one worked while the other did not. If you rely solely on ATMs for cash, I recommend these 2.

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Rainier
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by Rainier » Tue Apr 24, 2018 1:53 pm

fortfun wrote:
Tue Apr 24, 2018 1:41 pm
bligh wrote:
Tue Apr 24, 2018 1:24 pm
The Schwab and Fidelity Checking accounts are excellent for frequent travelers. One additional benefit is the linked brokerage account. I keep some money invested in the usual US/International Total stock market ETFS using the no transaction fee ETFs of each of the brokerages. One of the benefits of this is that I can borrow against them on margin and instantly transfer the cash into the checking account to withdraw via ATM. I have never had to do this, but with it, I can travel knowing that, in an emergency, I can get access to much more additional cash if I need it. You could just maintain a higher checking account balance if you like, but it increases your exposure theft if your card is compromised, also your money is sitting there earning nothing.
Does Fidelity waive international ATM fees? Thanks.
I've never been charged a foreign or domestic ATM from Fidelity. Their exchange rate is also excellent.

Even so, most of my foreign spend is by credit cards with no foreign fees. In fact, I went to Iceland without using any cash.

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bligh
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by bligh » Tue Apr 24, 2018 2:02 pm

fortfun wrote:
Tue Apr 24, 2018 1:41 pm
bligh wrote:
Tue Apr 24, 2018 1:24 pm
The Schwab and Fidelity Checking accounts are excellent for frequent travelers. One additional benefit is the linked brokerage account. I keep some money invested in the usual US/International Total stock market ETFS using the no transaction fee ETFs of each of the brokerages. One of the benefits of this is that I can borrow against them on margin and instantly transfer the cash into the checking account to withdraw via ATM. I have never had to do this, but with it, I can travel knowing that, in an emergency, I can get access to much more additional cash if I need it. You could just maintain a higher checking account balance if you like, but it increases your exposure theft if your card is compromised, also your money is sitting there earning nothing.
Does Fidelity waive international ATM fees? Thanks.
Yup, domestic and international. No foreign transaction fees and ATM fee reimbursements. I believe I read somewhere that there is a 1% foreign transaction fee if you use the fidelity debit card for purchases (ie not via ATM) but I have never tried to use it in that way before so cannot confirm.

KT785
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by KT785 » Tue Apr 24, 2018 2:19 pm

Leaving for Europe in a few days and will be using our State Farm Bank checking account as they also reimburse all ATM fees (including international) if you have at least one "direct deposit" (my recollection is a simple ACH deposit qualifies as a DD, whatever the source); I don't recall a hard inquiry to open the State Farm Checking account.

I'd looked at the Charles Schwab Bank account when moving away from B&M banking a few years ago, but needed an account wherein I could make occasional cash deposits via ATM and the only one that appeared to that that functionality was State Farm Bank.

SRenaeP
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by SRenaeP » Tue Apr 24, 2018 2:36 pm

I travel internationally a few times a year. The ATM fees are minimal ($10-15 over the course of the year) so I don't worry about it. I don't care to open/track a new account for such small potatoes. That said, I absolutely keep a CC with no foreign transaction fees.

Nate79
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by Nate79 » Tue Apr 24, 2018 6:10 pm

I am really enjoying the service and options at Schwab. We have been transferring our accounts there, starting with checking + brokerage accounts. The no fee ATM is icing on the cake. The hard pull on the credit report was a non issue. I don't even think it made a small dent, no more than the month to month or so fluctuations that happen all the time.

dustinst22
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by dustinst22 » Tue Apr 24, 2018 6:20 pm

Just use consumers credit union.

They refund all ATM transactions as long as you meet the tier requirements which is very easy.

4.6% back on checking up to 20 K if you meet the tier. Don't know of a better place for an emergency fund and checking acc.

With an 822 score what are you worried about? 760 gets you anything you need credit wise, an inquiry will bump you a couple points max.

madbrain
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by madbrain » Tue Apr 24, 2018 6:26 pm

SRenaeP wrote:
Tue Apr 24, 2018 2:36 pm
I travel internationally a few times a year. The ATM fees are minimal ($10-15 over the course of the year) so I don't worry about it. I don't care to open/track a new account for such small potatoes. That said, I absolutely keep a CC with no foreign transaction fees.
Obviously, you don't travel to Thailand. ATM fees there average 200 baht per withdrawal, which is $6.36 at today's exchange rate. And you may be limited in the amount you can withdraw by the lower of what your bank limit is, and the ATM's bank allows per withdrawal.
In Vietnam, the fees are lower, but many ATMs I have seen only allow the equivalent of $100 at a time.
The fees can add up quickly considering that a lot of merchants over there are cash only.
I use Fidelity Cash which refunds the ATM fees, including international. They keep track of how much ATM fees they rebated. It gets to the $100+ range almost every year.

02nz
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by 02nz » Tue Apr 24, 2018 6:36 pm

I recently opened Schwab checking and brokerage accounts. A feature that I think hasn't been mentioned in this thread is the ability to get the Amex Schwab Platinum. As churners here will know, the bonus on Amex Platinum cards is generally once per lifetime, but the Schwab version is a separate product so you can get the bonus even if you've gotten it on other Amex Platinum cards. You also get the ability to transfer Membership Rewards points (from any of your MR-earning Amex cards - they are all pooled into one) to the Schwab brokerage account at a ratio of 1 point = 1.25 cent. There are ways to get more value out of MR points but this is better than redeeming for statement credits or buying gift cards.

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fortfun
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by fortfun » Tue Apr 24, 2018 8:36 pm

dustinst22 wrote:
Tue Apr 24, 2018 6:20 pm
Just use consumers credit union.

They refund all ATM transactions as long as you meet the tier requirements which is very easy.

4.6% back on checking up to 20 K if you meet the tier. Don't know of a better place for an emergency fund and checking acc.

With an 822 score what are you worried about? 760 gets you anything you need credit wise, an inquiry will bump you a couple points max.
4.6% back on checking. I don't understand?

Bogle_Bro
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by Bogle_Bro » Tue Apr 24, 2018 8:37 pm

Lol... Dude... A hard pull affects scores a few points temporarily at most...

Trust me on this one. I pull & review credit reports for a living

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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by Bogle_Bro » Tue Apr 24, 2018 8:41 pm

GAAP wrote:
Tue Apr 24, 2018 12:52 pm
.

Once you get a score over 800, the effective difference in your credit is basically nil.

I don't churn cards, but too me it's a no-brainer.
Yup.


The best residential mortgage rates are offered to anyone with 740+ (up to 450k (and 650k in hcol) )

Best jumbo loan pricing tops out at 800

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fortfun
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by fortfun » Tue Apr 24, 2018 9:09 pm

Bogle_Bro wrote:
Tue Apr 24, 2018 8:37 pm
Lol... Dude... A hard pull affects scores a few points temporarily at most...

Trust me on this one. I pull & review credit reports for a living
Thanks. Wasn't sure how it might interact with frequent churning and number of open cards. Transunion doesn't seem affected but equifax seems to not like too many newly opened credit cards.

dustinst22
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by dustinst22 » Tue Apr 24, 2018 9:15 pm

fortfun wrote:
Tue Apr 24, 2018 9:09 pm
Bogle_Bro wrote:
Tue Apr 24, 2018 8:37 pm
Lol... Dude... A hard pull affects scores a few points temporarily at most...

Trust me on this one. I pull & review credit reports for a living
Thanks. Wasn't sure how it might interact with frequent churning and number of open cards. Transunion doesn't seem affected but equifax seems to not like too many newly opened credit cards.
5 accounts over 2 years is not frequent churning, thats really moderate.

The bigger impact with churning on the score is new accounts and not the inquiry (after ~ 3-6 months these have negligible impact). Still, we're talking 10-15 pts max. It's not like you're going to drop out of top tier territory. In my example, I churn ~ 16 new cards a year, and I'm in the high 700's. Good enough for the best rate for anything I need. Anything higher is like having a participation trophy.

BeneIRA
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by BeneIRA » Tue Apr 24, 2018 9:18 pm

fortfun wrote:
Tue Apr 24, 2018 9:09 pm
Bogle_Bro wrote:
Tue Apr 24, 2018 8:37 pm
Lol... Dude... A hard pull affects scores a few points temporarily at most...

Trust me on this one. I pull & review credit reports for a living
Thanks. Wasn't sure how it might interact with frequent churning and number of open cards. Transunion doesn't seem affected but equifax seems to not like too many newly opened credit cards.
The whole hard pull thing used to matter because years ago, banks cared about your number of hard pulls. Nowadays, banks have better restrictions in place and pretty much all of them don't care about your hard pulls. (Chase 5/24, Amex Once per Lifetime, Bank of America 2/3/4, Citi Once per 24 Months, Barclays being Barclays) It hardly lowers your FICO score and it goes back up the few points a few months later. Now, Vantage 3.0, that seems to hammer me when I have a hard pull, but I know the score isn't real. My FICOs have been unaffected. I believe I am 20/24 or something around that and my score has consistently gone up. With the $100 bonus, too, it's not a big deal.

I will say that I don't have an account. I just use Ally. They do charge a 1% transaction fee, but the exchange rate is about what I would expect to get and they don't charge ATM fees. They reimburse up to $10 a month, so in a place like Thailand, you have to be careful. Most places in Europe accept credit cards. I did an apartment rental once that required cash in Europe and I just used my Ally card to pull money out of an ATM. Ally hit me with the 1% foreign transaction fee. It was about $300, so I was out about $3.00.

takeshi
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by takeshi » Tue Apr 24, 2018 10:49 pm

fortfun wrote:
Tue Apr 24, 2018 12:44 pm
Is the damage done to my credit score worth the savings on ATM fees?
Hard pulls have a small impact. Some may see a bigger impact from hard pulls but such people have much bigger issues (derogs, high revovlving utilization, young/thin credit profile, etc) to worry over with their credit than a hard pull. In such cases the impact of a hard pull is more of an effect than a cause.

Additionally, a hard pull loses its FICO scoring impact at 1 year and falls off the credit report entirely at 2 years.
fortfun wrote:
Tue Apr 24, 2018 12:44 pm
Current Transunion credit score is 822
If that score is a Trans Union FICO 8 you have nothing to worry about a hard pull. The low end of the range where best terms are generally offered is around 740-760 with FICO 8. If that score is some other scoring model, I have no idea.
fortfun wrote:
Tue Apr 24, 2018 12:44 pm
however, I've been churning cards for the bonuses (5 the past two years).
Even if all 5 pulls were on your Trans Union report (and they're probably not) you wouldn't need to worry. I have 9 just on Equifax and I think I'm around 800, for example. Again, there are much bigger factors at play with credit and scoring.
fortfun wrote:
Tue Apr 24, 2018 9:09 pm
Transunion doesn't seem affected but equifax seems to not like too many newly opened credit cards.
All the CRA does is maintain your reports. FICO scores are not a product of the CRA's but of the Fair Isaac Corporation. If your EQ score is lower it's lower because of the data in your EQ report, not because EQ likes or dislikes.

Since you only mention TU and EQ are you getting these scores from Credit Karma? If so, be careful relying on them. Most creditors don't use the VantageScores provided by Credit Karma in making credit decisions. Your FICO 8's and other scores actually used in decisioning can vary quite a bit from your VantageScores.

seawolf21
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by seawolf21 » Wed Apr 25, 2018 7:35 am

fortfun wrote:
Tue Apr 24, 2018 1:41 pm
bligh wrote:
Tue Apr 24, 2018 1:24 pm
The Schwab and Fidelity Checking accounts are excellent for frequent travelers. One additional benefit is the linked brokerage account. I keep some money invested in the usual US/International Total stock market ETFS using the no transaction fee ETFs of each of the brokerages. One of the benefits of this is that I can borrow against them on margin and instantly transfer the cash into the checking account to withdraw via ATM. I have never had to do this, but with it, I can travel knowing that, in an emergency, I can get access to much more additional cash if I need it. You could just maintain a higher checking account balance if you like, but it increases your exposure theft if your card is compromised, also your money is sitting there earning nothing.
Does Fidelity waive international ATM fees? Thanks.
The agreement indicates Fido will add a fx transaction fee onto the VISA rate but in practice, they don't.

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sperry8
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by sperry8 » Wed Apr 25, 2018 7:59 am

madbrain wrote:
Tue Apr 24, 2018 6:26 pm
SRenaeP wrote:
Tue Apr 24, 2018 2:36 pm
I travel internationally a few times a year. The ATM fees are minimal ($10-15 over the course of the year) so I don't worry about it. I don't care to open/track a new account for such small potatoes. That said, I absolutely keep a CC with no foreign transaction fees.
Obviously, you don't travel to Thailand. ATM fees there average 200 baht per withdrawal, which is $6.36 at today's exchange rate. And you may be limited in the amount you can withdraw by the lower of what your bank limit is, and the ATM's bank allows per withdrawal.
In Vietnam, the fees are lower, but many ATMs I have seen only allow the equivalent of $100 at a time.
The fees can add up quickly considering that a lot of merchants over there are cash only.
I use Fidelity Cash which refunds the ATM fees, including international. They keep track of how much ATM fees they rebated. It gets to the $100+ range almost every year.
Same goes on in Chile. They cap the withdrawal to small amounts. Charles Schwab ATM is excellent and I recommend OP gets it.
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txranger
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by txranger » Wed Apr 25, 2018 11:28 am

I d second that both Fido cash mgmnt acct card and Schwab r a must in Thailand. Cash s king here and atm fees r ridic.

Nearly A Moose
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Re: Charles Schwab international ATM (worth the hard credit pull)

Post by Nearly A Moose » Wed Apr 25, 2018 10:01 pm

open_circuit wrote:
Tue Apr 24, 2018 1:43 pm
I set up a Schwab account before a recent international trip, just as you are considering. I found it very useful for foreign ATMs. I was not concerned about a credit pull and any impact on score. I recommend the account and card.
+1. Very pleased with the card. I've had it for years though and don't remember what they did when I opened it. Do you have a major credit need coming up? If not, don't let the tail wag the dog here.
Pardon typos, I'm probably using my fat thumbs on a tiny phone.

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