Cheap Travel Money Discussion Area

hohoXD123

Hey, I'm a newbie to this whole thing so please forgive me if it's a stupid question, but I have a Lloyds TSB credit card and I know that they charge a load rate on each spend abroad. However, someone correct me if I'm wrong, but don't Bureau De Changes charge commission on top of the exchange rate too? If so then would I really be that much worse off to use my credit card compared to exchanging the cash now? I'd preferably like to carry around as little cash as possible for security reasons but since I'm going away on Sunday, I don't think I'll have time to apply for a prepaid card and I'm not eligible for the specialist credit cards. Help anyone?

zagfles

hohoXD123 wrote: »

Hey, I'm a newbie to this whole thing so please forgive me if it's a stupid question, but I have a Lloyds TSB credit card and I know that they charge a load rate on each spend abroad. However, someone correct me if I'm wrong, but don't Bureau De Changes charge commission on top of the exchange rate too? If so then would I really be that much worse off to use my credit card compared to exchanging the money for cash now? I'd preferably like to carry around as little cash as possible for security reasons but since I'm going away on Sunday, I don't think I'll have time to apply for a prepaid card and I'm not eligible for the specialist credit cards. Help anyone?

Yes, it'll likely be much cheaper with your Lloyds card, since their markup will be on the VISA/Mastercard rate which is pretty much interbank. Whereas Bureau De Changes will use "tourist rates" which usually include a markup of about 5% on the interbank rate, and sometimes charge "commission" on top of that!!

tamarabclat

I must be really dense, but I'm not actually understanding what you get from using say, the Halifax clarity card abroad as opposed to pre- ordering cash at the best rate available a few weeks before which is what I usually do

Is the advice to use the card to withdraw cash abroad or to use it as a credit card to pay in shops/restaurants? Or a bit of both perhaps.

What will it give me on a holiday spend of roughly £500 (but probably less) over cash?

Thank you for your help.......and please speak slowly

macro_duck

shyl wrote: »

I am going to Iceland in July and wondering what would be the best way to take my money. I am looking at either the Halifax Clarity or a pre loaded with sterling card? Many thanks

I am also going to Iceland in July as part of a cruise which includes the Faroes and Fiords. Any advice would be appreciated. Someone who went to Iceland last year said many places accepted sterling.

murphydavid

tamarabclat wrote: »

I must be really dense, but I'm not actually understanding what you get from using say, the Halifax clarity card abroad as opposed to pre- ordering cash at the best rate available a few weeks before which is what I usually do

Is the advice to use the card to withdraw cash abroad or to use it as a credit card to pay in shops/restaurants? Or a bit of both perhaps.

What will it give me on a holiday spend of roughly £500 (but probably less) over cash?

Thank you for your help.......and please speak slowly

Depends on your preferences.
Personally I prefer a credit card to cash both home and abroad for all the reasons they were created. Thus I use it to pay for stuff in shops etc and get 30days interest free. They charge interest on cash from the day you withdraw it. Don't know if that's cheaper than pre ordered cash. I think its discussed in Martins article. But overall its not a question of saving or loosing a few pounds its just a case of convenience / preference.
One other thing a bit stupid really but I hate trying to count out and or receive change in a currency I'm not familiar with.

Bri1

usman.siddiqui wrote: »

Greetings,,

I am tempted with the idea of the Halifax Clarity card as I am often finding myself travelling these days. However the fact that cash withdrawals result in interest being charged is a little off putting.

I was wondering, therefore if it would be possible to avoid the interest by depositing funds onto the credit card before travelling i.e put the card so it is in a positive credit balance in my favour.

I would be interesting in hearing your thoughts.

Cheerio
Usman

Just take a mixture of cash & the card & do most of your purchases using the card (good rates better than cash exchange) & just use the cash when you only have to, no need to do cash withdrawals then whilst away, seems to work fine for me.

zagfles

tamarabclat wrote: »

I must be really dense, but I'm not actually understanding what you get from using say, the Halifax clarity card abroad as opposed to pre- ordering cash at the best rate available a few weeks before which is what I usually do

Is the advice to use the card to withdraw cash abroad or to use it as a credit card to pay in shops/restaurants? Or a bit of both perhaps.

What will it give me on a holiday spend of roughly £500 (but probably less) over cash?

Thank you for your help.......and please speak slowly

Because you get a better rate! Compare the best rate you can get for cash with the Mastercard rate:

https://www.mastercard.com/global/currencyconversion/index.html
(though seems to be broken at the mo - maybe my browser)

Even after you pay a week or two's interest on cash withdrawals the Clarity is usually cheaper.

It's also far easier and more secure, you can withdraw what you need when you need it, you're not carrying large amounts of cash around, and a lot less faffing about pre-ordering, collecting, staying in for the post or whatever.

murphydavid

zagfles wrote: »

Because you get a better rate! Compare the best rate you can get for cash with the Mastercard rate:

https://www.mastercard.com/global/currencyconversion/index.html
(though seems to be broken at the mo - maybe my browser)

Even after you pay a week or two's interest on cash withdrawals the Clarity is usually cheaper.

It's also far easier and more secure, you can withdraw what you need when you need it, you're not carrying large amounts of cash around, and a lot less faffing about pre-ordering, collecting, staying in for the post or whatever.

Its broken for me too (firefox browser) But you can do the same at http://www.xe.com. I'm told they use the same rate to do conversion.

NiftyDigits

murphydavid wrote: »

Its broken for me too (firefox browser) But you can do the same at http://www.xe.com. I'm told they use the same rate to do conversion.

Who told you?

Whilst they are waiting for your reply, the others can click here

zagfles

Just been looking at the NZD, it seems that VISA rates have a 1.5% markup on the interbank rate, whereas MasterCard seem to be about 0.5%. But really need the MasterCard site back so can compare the rates with someone with a NZD card paying in GBP, to eliminate timing problems. (with VISA it does seem the 1.5% markup is consistent)

By the looks of it it would be better using the Clarity (MasterCard) than Nationwide Flex Plus (VISA) for cash, even if I have to pay a bit of interest on the Clarity...

ETA: now the Mastercard site is working it seems they only have a 0.035% markup on the interbank rate for the NZD, so MasterCard much better value than VISA!