Travel Money Tips

When you go abroad for your holiday it is important to get the best out of your travel money and not be overcharged for the way you change or spend it. Here some tips and guidance on the ways you can take money abroad, spend it, and make sure you get the best value for your money.

Credit Cards

It is convenient to use credit cards abroad and this can save taking too much cash, but you must be wary of the charges that might be applied when you do use your credit card on holiday. Sadly, most credit cards do add a 3% charge to the exchange rates, but you won’t see this as a separate charge; you will only see the rate when you receive your credit card bill. There are, however, some cards that do not charge this extra loading. This is termed a ‘perfect exchange rate’.

Examples of cards giving a perfect exchange rate are:

• Halifax Clarity

• Sainsbury’s Gold

• Saga for the over-50s

As well as avoiding exchange rate loading it is important to pay off your credit card bill in full to avoid interest charges.

Cash

You will certainly want to take some ready cash to spend on your holiday. Do not leave it until the last minute and change it at the airport. They know that you have and they will increase the exchange rate – in their favour – accordingly. Avoid this by pre-ordering or at least changing closer to home beforehand. This can be done at most places on the spot, so you can leave it until the day before – but don’t think about it when you’re on the way to the airport! Travel money comparison sire TravelMoneyMax.com can help you find the best deal for changing cash.

Avoid drawing cash on your credit or debit card as this will almost certainly come with an instant charge which you can avoid by changing and taking enough money before you leave the UK.

Debit Cards

If you don’t have a credit card (or even if you do) you might be tempted to use your debit card abroad. Avoid this, as most have fees that add up to £1.50 every time you spend on the card. Best to leave your debit card at home.

Pounds or Euros?

Whether you pay by credit card or debit card, you may be asked in some establishments whether you wish to pay by Pounds or by Euros. Your answer should be ‘Euros’, as, if you choose to pay in pounds, the shop applies its own conversion rate – called a dynamic currency exchange – which will certainly be worse than the rate your card will give you.

Traveller’s Cheques

Cash is handy and you can count down how much you have left! However, it is the easiest type of money to steal and spend, so you may consider reducing your exposure by buying traveller’s cheques. If these are stolen, you can report the fact and get them replaced straight away. Traveller’s cheques are not as popular as they used to be with the wide ownership and use of credit cards. Indeed, in some remote destinations traveller’s cheques are not accepted at all. This is not the case in the US, however, where dollar cheques are welcomed in most places as payment. Taking very large sums of money abroad is best avoided if possible and traveller’s cheques can be a cheaper alternative to credit or debit cards.

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