So you're planning on traveling abroad. But do you know how to get the best exchange rates in the UK? Many people either opt to use cash, their credit cards, or exchange currencies at the airport. Each of these has their advantages and disadvantages but in the bigger picture prepaid currency cards may be the best option.
The Advantages and Disadvantages of Each Option
The first option is to use cash. While cash is convenient and simple, nobody wants to carry around their huge travel budget with them on their trip. If you lose your wallet or your belongings, this can mean a huge disaster as your cash will be irretrievable.
The second option is to use your credit card. Many international locations accept credit cards and are convenient. However, credit card companies usually charge you extra fees to convert currencies. While the fees are not as high as you'd think, they add up and can cost you a lot of money.
The third option is to get your currency exchanged at the airport. This should only be in the case of an emergency as the fees that the airport exchange centers charge are very high. Sometimes the rates can be over 10%, taking away from your total budget.
Why Prepaid Currency Cards Are The Better Choice
Prepaid currency cards will allow you to get the best exchange rates in the UK. All you have to do is use your credit card or debit card to load up your card. The great thing about prepaid currency cards is that they can be used as a regular credit card but without the high fees associated with international payments.
What's more, many currency cards come with the same kind of benefits as credit cards. You can earn reward points, get fraud protection, and you can return goods if the merchant offers a refund policy. If you lose your currency card, you can let the company know and transfer the remaining money into a new one.
Manage You Money Easier With Currency Cards
When traveling, it's easy to get carried away and spend more than you can afford. According to statistics, most travelers overspend over their planned budget. This is because there are always things that come up where you need to spend additional money.
So if you want to stick to a tight budget, you can do so with a currency card. In addition to getting the best exchange rates in the UK, these cards will not be usable once your budget is reached. Additional money will not be transferred from your credit card or debit card into your account.
Thursday 17 June 2010, 12:18pm
Are you planning to travel to the states? If so, then you're probably aware that you have to plan a whole lot of things from what hotel to stay in, what places to visit, and what kind of activities to do. One of the most disregarded aspects of traveling is currency exchange. Travel money USA dollars can be exchanged for almost anywhere, but the challenge is in getting a good rate.
What Options Are Available?
The most well-known way of exchanging currencies is getting it done in the airport. While exchanging currencies in the airport is convenient, you should only resort to it if it's an emergency. The rates at the airport are very high and can take anywhere from 10-20% of the money you're exchanging.
Another way to get your currency exchanged is going to the High Streets. Although, this can be a lot cheaper than the airport, the rates always fluctuate so you will have to get your money exchanged at the right time. If you can plan beforehand this is something to look into.
The last method is to simply carry cash with you. While carrying cash is convenient, many people feel uneasy carrying their whole traveling budget along with them. While rare, you may lose your wallet or have your baggage stolen in the worst case scenario.
Are There Any Better Alternatives?
The answer is an absolute yes. A great alternative is to buy currency cards. With these cards, you can buy travel money USA dollars at much better rates rates. This is a relatively new way to pay for your travels and many travelers are not familiar with how prepaid currency cards work.
All you have to do is load up your currency card with the amount of money you want to spend for your trip to the US. The currency card is used as a regular credit card but this card is not linked to your bank account in any way. So if you lose it, you won't have to worry about identity theft or unauthorized withdrawal from your accounts.
Prepaid currency cards are also very safe to use. If you lose the card, you can simply call the company and request your balance to be transferred to a new card. This way, nobody will be able to use the remaining balance on your old card.
Prepaid Currency Cards Help You Stick to a Budget
Many people find themselves overspending on their trip. By loading up your currency card with a set amount of money, it will be easier to stick to your budget. But what if you need money for an emergency? No problem, you can simply call the company and transfer money into the account. The company will update your balance within a couple of hours.
In conclusion, prepaid currency cards are the way to go if you're looking for travel money USA dollars. These cards are convenient, easy to use, and safe. Next time you plan your trip, look to use prepaid cards to pay for all your expenses.
Monday 07 June 2010, 10:25am
If you are going away on a family holiday then you want everyone to have a good time but in the current economic climate you don't want to overspend on foreign exchange currency. Most people like to make sure that they have at least some foreign currency before their holiday departure date. There are several ways of purchasing foreign currency, some more cost effective than others.
Getting Currency From theHigh Street
An increasing number of people who used to buy foreign currency from their travel agents now by it from high street shops. It may be convenient to buy from your travel agent, but there is often a price to pay for this in commission and losses on the return of any unused currency, and even 0% commission shops build their costs into their exchange rate margin. Buying your currency in this way may not be convenient and it is all too easy to overspend if you find that you have not purchased sufficient currency for your needs.
Travellers Cheques
A time honoured way of buying foreign exchange currency is by purchasing a small amount of euros or dollars in cash, and having the rest on traveller's cheques. Traveller's cheques are useful for foreign currency and most banks and agents will make a refund on any unused cheques. One of the problems with traveller's cheques is that many hotels and other outlets will charge you a commission on every cheque that they change. Although commission is often a small amount, if you have a lot of cheques it can rack up significantly over the course of a fortnight.
Credit Cards or Currency Cards?
More people take little or no hard foreign currency with them when they go abroad and prefer to get their cash as and when they want it via their credit card. Buying foreign exchange currency on a credit card can be an expensive business. There is always a risk with credit cards that at crucial times such as Christmas and annual holidays, there is much more of a tendency for people to spend more than they had originally budgeted for. When you withdraw currency on your credit card, most credit card providers make an additional charge on top of the usual interest rates. Some credit card companies still charge you extra for using your credit card abroad and for using foreign ATM machines.
In case you hadn't heard, there is a simple way of ensuring that you don't overspend on foreign exchange currency, and that is to use a prepaid currency card like the FairFX. Currency cards are similar to prepaid credit cards, in that you load them up with the amount of money you intend to spend before you go. You can get these cards and load them with currency online and then use them in the same way that you would use a credit card. The currency card is proving to be one of the best ways to buy euros and dollars cheaply, and to avoid overspending on foreign exchange currency.
Friday 04 June 2010, 03:24pm
