Credit Card or Cash

kah22

I'm going abroad shortly, into Euro land, for a short stay break and I was wondering what's  the best way to spend.  Take what  Euro I think I'll need - it is a short break - and use my M&S credit card as a backup? Or use the CC where possible with a Euro as a backup?

Ebe_Scrooge

Check what fees the M&S card will charge.  A lot of cards will impose a Foreign Exchange fee whenever you buy something that's not in GBP.

The best way - if you can get one - is to use a "travel credit card" : https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

These won't charge an FX fee, and will give you just about the best exchange rate it's possible to get - just make sure you pay for stuff in Euros and let the card do the conversion for you.  If you let the retailer convert the price into GBP before you pay, you can bet they'll use an exchange rate that favours them.

If you can get one of these travel cards, then use that to pay for everything as much as possible.  You can take a bit of cash with you if you want, or use the card to withdraw cash at an ATM whilst you're there.  Withdrawing cash on a credit card is usually a bad idea, but in this scenario, with the right card, it can actually work out to be the cheapest way.

All this assumes, of course, that you'll be repaying the card in full when the statement arrives.

400ixl

Personally as long as you have a card which gives you the full inter bank exchange rate and no fees I would be using that as much as possible.

Minimise the amount of cash you use and you won't get left holding unused currency on your return.

Brie

I always take some cash for those small purchases, and leaving tips.  If there's no transaction fee, just exchange rate for the M&S card then that should work well in most locations but don't forget that depending on the country and business any credit may not be accepted.  So you have to be prepared to pay in cash or get a cash advance from an ATM.  That was needed to pay our hotel bill in Austria a few years back so we had to got to the ATM and get the daily max out for a few days in a row in order to settle up!  Had the same issue with some posh restaurants in Germany as well.

Edi81

Open a monzo or starling current account and use that. 

kah22

Great advice guys.  I had forgotten completely about the prepaid card

eDicky

kah22 said:

Great advice guys.  I had forgotten completely about the prepaid card

What prepaid card..? I see no mention. They are best forgotten..!

denow

Chase Card all the way. No fees and 1% cashback on your spending

penners324

Monzo & Starling &:Chase arent prepaid cards. Though you could use them as such.

kah22

eDicky said:

kah22 said:

Great advice guys.  I had forgotten completely about the prepaid card

What prepaid card..? I see no mention. They are best forgotten..!

The reason I said ‘prepaid was I searched the Forum and found this bu I may have picked it up wrong
https://www.moneysavingexpert.com/credit-cards/prepaid-travel-cards/#what