Whenever you travel abroad at some point in the proceedings you will need to ensure that you have a means of obtaining travel money, Euros if you are travelling to Europe and Dollars if you are going to America. There are a number of ways of obtaining the currency that you need, what you need to know is how to get a good exchange rate for your money.
Exchange Rates
One of the problems with buying currency from a travel agent is not just the commission that many agents charge, but the fact that you won't necessarily get good exchange rates. The current global financial problems have meant that the exchange rate, never totally reliable, can now change from one hour to the next. If you have paid 90p for a Euro, and the pound goes up against it in the meantime, you will be paying more for your travel money. You may have purchased a mixture of cash and travellers cheques and although it means you aren't walking around with a load of cash, and some hotels and apartment complexes charge a commission for changing your travellers' cheques.
Credit Cards
Credit cards have two things going for them when it comes to purchasing your travel money, you get the exchange rate of the day, and you don't have to carry around a pocketful of Euros everywhere you go. The problem with using a credit card to buy your travel money is that you are charged every time you use an ATM machine and the credit card company will also charge you a premium for taking out cash. If you don't pay your credit card bill in full before the allotted time, then you will be paying interest on all those extra charges, which in real terms means that you got a bad exchange rate.
FairFX Prepaid Card
If you really want to get good exchange rates when you go abroad then the simplest and cheapest way of doing so is with a FairFX prepaid travel money card. Currency cards work in the same way as a prepaid credit card. You put whatever money you have set aside onto the card before you go away and it is ready to use when you reach your destination. The exchange rate that you get with a currency card is better than the deal you would have got from your travel agent, and quite a bit cheaper than using a booth at the airport or on thei high street to change your money, and cheaper than most credit cards. The FairFX currency card is a reusable card and can be loaded up with pounds, euros or dollars. You can buy your card and your currency online, if you wish you can have the money transferred to your foreign currency bank account.
Order your FairFX card today for better rates on holiday money.
Thursday 06 May 2010, 02:17pm
If you are going away on holiday then you will need to organise your travel money. Like most people you will want to get the best value for your money, which means you want to find above average exchange rates if at all possible. There are a number of ways of buying foreign currency, some of them more cost effective than others. Should you use a credit card, buy cash or travellers cheques, or would you get a better rate with a prepaid currency card?
Using a Credit Card
If you don’t want to be walking around with several hundred pounds worth of dollars or euros in your luggage, then you may decide to use your credit card to obtain the currency that you need while you are abroad. The benefit of a credit card is that it allows you take advantage of whatever the exchange rate is on a given day. While credit cards do have some advantages, they may not get you the best exchange rate once you calculate in what it costs you to borrow money on a credit card. Not all credit cards carry the same level of charges, but this can still be an expensive way of buying currency, which is not what you want if you are looking for above average exchange rates. Some credit card companies levy extra charges every time you use an ATM machine when you are abroad.
Cash or Traveller’s Cheques?
A lot of people still tend to buy foreign currency through their travel agent or through the post office. Most travel agents and post offices will charge a small commission on your currency and you won’t necessarily get the best exchange rates from them. Some people like to feel actual foreign money in their pockets when they go away because it makes the experience seem more real. Other people prefer to take a small amount of cash for incidental expenses when they first arrive, and then take the rest of their money in traveller’s cheques. Traveller’s cheques are not one of the best ways to get a decent exchange rate, but you do have the security of knowing that if they are lost or stolen, you can have them replaced.
Prepaid Card
Increasingly travellers are turning to prepaid currency cards as the cheapest way to buy their travel money. Prepaid cards offer a better exchange rate than either banks or the post office and can be a lot more cost effective than traveller’s cheques. The prepaid chip and pin card can be ordered online, you can order your currency at the same time. Prepaid cards have much lower charges than most credit cards and because they are designed for a specific purpose, you will get above average exchange rates on foreign currency. The cards are reusable, and when you want to go away again you just load up the card and you are good to go.
Order your FairFX card today for much better value holiday money on your next trip.
Wednesday 05 May 2010, 12:09pm
Are you planning to go on a vacation out of the country but worried that your expenses might go overboard? If you are then that makes you one of the thousands who are worried about carrying cash, saving money while on vacation, and having to deal with travel money rates that catch you off guard. Most travelers who fail to manage their finances while on vacation often end up going over budget and are left to pay for their credit card bills.
The Traditional Solution to Changing Your Currency
There are a lot of choices that you can choose from when it comes to bringing changing currency. The traditional way is carrying cash. Having your money in your wallet might give you convenience, but you're also taking a risk as you never know what might happen. You may be pick-pocketed, lose your wallet, or even overspend. To be wise about carrying cash, it is safer to bring a small amount with you to spend on the little purchases that you make on the trip.
A lot of travelers often fall into making the mistake of changing currencies on airports; Travel money rates on airports are lower which makes it more expensive. Furthermore, commissions are charged by companies at almost 8% in general when converting currency.
Another option is your credit and debit cards. Using your credit card or debit card can be fast and handy, saving you the hassle of carrying a lot of money. But for the convenience, credit and debit card companies charge you high rates for foreign currency transactions (Credit card users are charged almost 3%).
Another popular choice is using the ATM, withdrawing your money through ATMs is convenient and it also allows you to spend within your limit. However, it does have some drawbacks. You will have to take your time in looking for ATMs to withdraw your cash, for a tourist in a foreign country this may be exhausting for you because you are not familiar with the area.
The Contemporary Advantage
The best method is the use of prepaid currency cards. It is by far the most secure and has lesser fees and minimal charges than credit cards but offers the same amount of convenience. You also don't have to worry about overspending as you get to monitor your expenses. The card also offers better exchange rates than buying cash and you won't have to deal with long lines at FOREX booths to have your money changed. If lost or stolen, the latest transaction could be cancelled and your remaining account could be transferred to another card within 24 hours.
How do I Save Money While on Holiday?
The answer is easy - by spending wisely and keeping track of the money that you are spending. If you want to think ahead of yourself and you want to do away with the trouble of auditing your cash every now and then, managing your finances and using a prepaid card to limit your expenses will go a long way in saving money. This way you won't have to deal with the high travel money rates in exchange centers.
Order your FairFX card today for much better value travel money on your next trip.
Friday 30 April 2010, 02:23pm
