Traveling USA May-July 2009 Pound to dollar concerns.

Phileas_Fog

Hi, great web site and seems the best place to ask.

Im traveling around America next year from May to late July, my accommodation is paid for but i will need to still need money while I'm out there such as food and spending money. The most i think i will spend is £3000, i have recently got a Credit card and have saving which will be my spending money.

Should i Arrange a direct debit on my credit card and use that for spending and take out money on my Visa from my current account as and when i need it.

Gets travelers checks which are insured but are change at the current exchange rate or

Exchange some money now at the low rate of 1.4 or wait till after christmas and hope it rise's.

When traveling will a low exchange rate just mean things are more expensive ?
Any help will be greatly appriciated.

balsingh

Hi,

You got it the worng way round. The higher the rate, the better off you are when spending in the US. Back in July this year £100 got you $200, now it only gets you $140. You should hope the pound recovers a bit against the dollar by the tiem you go.

Also, open a Nationwide Flexaccount and use the card to draw cash from ATMs to get the best no commission exch. rate. If you want to use a credit card, the Nationwide card is also good but DONT use it to draw cash from ATMs.

Forget travellers cheques .... just load up your Flexaccount before you go and then draw the cash or use it as a Debit Card over there. Try and get some level of overdraft just in case you end up spending more than expected.

final tip, when paying using the card, if they offer you the option of paying in £, don't ... pay in dollars!!!

Hope that helps!!

bairn7

Hi

I'm in the same boat, I'm heading to the US in June. I expect the £ to recover a bit against the $ by then but no-one really knows so I am also in two minds about what to do.

I personally wouldn't go down the credit card route. balsingh is correct in that you should definitely get a nationwide card before you go. They don't have any charges for using your card abroad and you get the current exchange rate.

I'm also keeping an eye on the exchange rates at online sites like crowncurrencyexchange.com. As you are going away next summer, you could take advance of the beneficial rates if you are willing to pay now and not receive the currency until you are about to go. I've done this twice now and they are very efficient. Beware the cancellation terms though, they are pretty strict!

Hope this helps

jackieblack

Lots of us in the same boat!

There is lots of good advice on this on this thread (US ($) Currency).
http://forums.moneysavingexpert.com/showthread.html?t=587211&page=42

Liz_the_Whizz

jackieblack wrote: »

Lots of us in the same boat![URL="http://"][/URL]

Not me, I'm flying:rotfl: :rotfl: :rotfl:

Phileas_Fog

Ok ill look in too the card option.

FH_Brit

If you use debit/credt cards be sure to inform the credit card company before you leave that you are travelling and you're due return date.

Theuy are increasingly "putting a stop" on the card when you are away as it looks so much like faudulent charges - out of your normal spending area.

It dont cost and at least you won't have the greif of trying to arrange it from abroad! ! !

Phileas_Fog

Ok, i went too Nationwide to open an account today and was denied due to my credit report.

Ive never used a credit card , never been in dept , have savings for my trip , dont use my overdraft and work full time.

What to do now ?

Why would i have a bad credit report ? / whats the next best option for money abroad ?

bairn7

The pressing concern for me would be why I have a bad credit report! Get a copy of your credit report through experian. They usually give you a free trial of their service which is long enough to get your report and then cancel the trial. Just to make sure there is nothing fraudulent going on.

M4RKM

it might not be that you have bad credit.. it could be that you have NO credit, so they have no clue how you're going to control your account!!!

M

Phileas_Fog

markymoo wrote: »

it might not be that you have bad credit.. it could be that you have NO credit, so they have no clue how you're going to control your account!!!

M

Yeah the chap in the bank said this could be the reason, it seems silly to think you have to proof you can manage debt by getting into / clearing debt.

Id still like to know what i should use now ?

Im with Barclays at the moment, not sure what my withdraw limit is and if to use this a take the charges. Are the prepay cards any good has anyone used FairFX and are the exchange rates as compettative as quoted.