One of the most complicated things about going on a trip to somewhere that uses a different currency to you is how to pay for things when you get there. Over the years there have been many many different solutions such as buying cash, travellers cheques, prepaid debit cards, debit cards and credit cards. In 2012 I applied for a fee free travel credit card and since then it has become the only way that I either get foreign currency or pay for items when travelling. I always pay off the balance in full via direct debit and further will make a faster payment on the card after a withdrawal since it accrues interest on cash withdrawals.
The advantages of this credit card for me are that if I am travelling for a month, I don’t need to worry about bringing cash to cover the entire length of the trip. I don’t have to worry about unexpected expenses depleting my cash stocks since I can visit an atm. The amount of interest I have paid over the entire time that I have had this card is very low, and the exchange rate I have gotten has more than made up for any interest that I have had to pay.
I would recommend anyone looking to save money on travel currency to seriously consider whether a travel credit card would be appropriate for you. In the UK there are cards at the moment that have even better terms than mine, and I recommended one to my sister.
The only issue I have ever had using my card to withdraw money was in Marrakech Morocco, where I had to call back to England to find an atm that would function with the card. This was sorted pretty quickly and for the rest of the holiday I was able to use the card without any problems. The most important thing to remember if you are going to use a travel credit card is always to pay in the local currency when given the choice since the alternative home currency option will always have a worse exchange rate.
For emergencies it is a pretty good idea to bring some home currency cash with you, that you can redeposit in your account on your return home if you haven’t had to use it. I have forgotten to do this a couple times and have had to sweat a little before I was able to find an ATM to get some money.
Lastly if you are planning on visiting somewhere pretty remote, it is always important to verify whether you will be able to use your card to pay for things, whether there is a charge for doing so and also if there is an ATM available anywhere in the local area. This can save a lot of stress if you turn up on a remote island without a way to pay for the things you want/need.
