Prepaid Travel Cards guide

malc_p

eDicky wrote: »

I suggest that you disregard the idea of 'locking in' the exchange rate by preloading dollars on a prepaid card, because it will cost you a percentage spread on the rate and nobody knows which way the value of the pound will go, so there's a less than even chance of any advantage. There's also the issue of having unused dollars left over, with further cost to recover in pounds.

Instead, choose cards that cost nothing and keep your money in pounds until you use them, such as Monzo, Starling Bank. Revolut can be used either way, with only the £5 card fee. Take at least two, any card can fail or be lost, stolen etc. There's not much need for cash in USA.

Ah right, ok - as long as the high MasterCard (or better, InterBank) rate is used (as opposed to the crap rate my existing NatWest debit card would get me) then a Monzo card may be the way to go. It isn't clear from the spiel on the card sites that I'd be losing out (getting a worse effective rate) - on a spread bet as you say - by preloading (hence locking in a rate), though?
Totally agree on it being anyone's guess what the rate will be in two month's time though, depends largely on what either The Donald or our own government do in the interim!

eDicky

malc_p wrote: »

It isn't clear from the spiel on the card sites that I'd be losing out (getting a worse effective rate) - on a spread bet as you say - by preloading (hence locking in a rate), though?

I'll try to explain better. If you buy dollars today at the perfect interbank rate there's an even chance of having gained or lost compared to doing the same when you're on holiday in two months' time.

But when you load dollars on a prepaid card (or exchange cash) at a rate that is ~2% worse than the interbank rate, the value of the pound would have to fall that much more before there's any advantage in having locked in that rate, compared with waiting two months and converting at the interbank or MasterCard rate when using one of the best cards.

So I see no point in 'locking in' a rate, unless you want to convert some now (at interbank rate), and the rest later, as a hedge against fluctuation.

eDicky

GOMonTour wrote: »

Looking for advice. I have a Halifax Clarity card but I am thinking of getting a pre-paid card mainly for ATM cash withdrawals. Is it necessary?

If so any recommendations? Any views or opinions on the Travelex Cash Card? I have not seen any mention of it on the MSE website.

It will cost you nothing to have a Monzo card as backup, and perhaps simpler cash withdrawals. Travelex cards are not mentioned here because their rates and fees make them bad value compared to all the best choices.

GOMonTour

eDicky, thanks for the reply which is rather more useful than the earlier ""No" given by dj1471.

PeacefulWaters

GOMonTour wrote: »

eDicky, thanks for the reply which is rather more useful than the earlier ""No" given by dj1471.

It did accurately answer your question though.

kat2017

Hello


I need to apply for a travel credit card to take to Sri Lanka to get currency (as I have found, it is illegal to get Sri Lankan currency outside of the country).


I have gone to apply for a travel card and it tells me I am only 40% likely to get one (through the MoneysavingExpert tool). This score is from me trying to apply for Halifax - if I apply for Barclaycard etc it then goes up to 50/60% unlikely.


I have a 999 credit score rating and currently have 1 credit card I use for every day purchases. The only downside I can think to me not being accepted is I am not a home owner and under the age of 30.


Can anyone help me please as I don't understand why I would be so low in the chances of applying for one with such a high credit score...


If I don't get one, (I am backpacking so access to banks may be quite limited when in more remote places), if I use my debit card to get cash out I am going to get stung with lots of additional costs!


Any advice on any alternative options/ help would be great!


Thank you


Kat

PeacefulWaters

kat2017 wrote: »

I have gone to apply for a travel card and it tells me I am only 40% likely to get one (through the MoneysavingExpert tool). This score is from me trying to apply for Halifax - if I apply for Barclaycard etc it then goes up to 50/60% unlikely.

I have a 999 credit score rating and currently have 1 credit card I use for every day purchases. The only downside I can think to me not being accepted is I am not a home owner and under the age of 30.

Ignore the credit score. You can see how meaningless it is from this.

If I don't get one, (I am backpacking so access to banks may be quite limited when in more remote places), if I use my debit card to get cash out I am going to get stung with lots of additional costs!

Your credit card might be better value than your debit card, as long as you clear balances in full.

Any advice on any alternative options/ help would be great!

Monzo. Revolut. Virgin have something handy too.

eDicky

kat2017 wrote: »

I need to apply for a travel credit card to take to Sri Lanka to get currency

It doesn't need to be a credit card, as you can read in this thread you are posting on. Best choices are probably Monzo, Starling Bank, Revolut. Take at least two different ones. PW refers to the Virgin Money Essential Account, its card has no fees except £1.50 per ATM withdrawal. Ask on the Credit Cards board if you're still interested in CC eligibility.

greymoney

No-one seems to mention the reaction of the trader or person abroad from whom you are purchasing with the use of a credit card. Do they not add a premium to the bill?

jtaubman

We went to India earlier in the year, we took both Revolut and Monza cards. We had no problem with the Revolut card, but the cash machines in India are the older type and require the mag stripe, so we were unable to withdraw money on the Monza card.

So make sure you take a couple of types of card just in case.

Previously we have used the FairFX cards in the EU for several years with no problems.

Since returning I have moved to using the Revolut card for most of my internet purchases, since it's often possible to purchase in USD cheaper than GBP.