What's cheapest way of using credit card for foreign currency?

Mercuryrising

I've got a MINT card and need to use it for spending money (about £300) in New York.

Is it best to do a cash advance in the UK and then convert it to dollars in Marks and Spencers or is it cheaper just to use the credit card to buy the dollars?

I take it using it abroad in an ATM will be extremely expensive.

Thanks

Mathsguy

Depends on how many purchases it involves and how quickly you plan to pay off the £300.

Using a credit card abroad usually incurs an extra charge (not sure about MINT specifically) of about £1 or £2 on each transaction. Getting a cash advance typically also has an associated fee AND you usually don't get an 'interest free' period

Therefore, if the £300 is from 1 or 2 purchases and you plan to pay it off within the interest free period (typically 60 days) or soon after that then go use your card once abroad. If the £300 is lots of little purchases, and you will be paying it off over a long period then it would probably make more sense to get cash here and change it up before you go.

The best option ofcourse is to use your credit card for buying something here in UK, that you would usually pay for in cash or debit card, and then use the money 'saved' as your US spending money.

YorkshireBoy

If you absolutely must fund your holiday spending money on your Mint card, then consider a 'money transfer', rather than a cash advance, because the interest rate is the same as that for purchases/BT's/cheques (outside an intro period) according to the summary box at http://www.mint.co.uk/credit_cards02.asp?page=CARDS/CREDIT_CARDS/SUMMARY_BOX.
Interest is charged from day one though, and there may also be a fee payable.

realaledrinker

If you have enough time, you could apply for a M&S & More credit card. With this, you can buy forex at their stores & have it treated as a purchase, ie take advantage of their 6 months 0% on purchases offer when you open an account.

King_Of_Fools

It would be far far better to use the credit card to purchase stuff whilst abroad and use as little cash as possible.

Mercuryrising

Thanks very much for replies, lots of ideas - I know about the using credit card to buy otherstuff that I would normally but I doubt that'll work in this case as I didn't budget properly last month. I'll look again.

Although if you buy currency in M + S (or PO say) using your credit card is this treated as a cash advance or a purchase? And is the worse case scenario that they treat it as a cash advanced and whack on a foreign exchange fee.

Will enquire about money transfer too - always wondered how that works on MINT. Don't know if I have the time though as I'm going on Friday.

BTW (and slightly off topic) - King of Fools? A fan of - excellent, my favourite band at the moment!

JohalaReewi

Consider the Nationwide solution. Open a nationwide flexaccount with a debit card. You can use the debit card in ATMs overseas to get cash with no commission charge on the forex, and no Nationwide transaction charges. If the ATM has its own fee, you will still have to pay that. For purchases, get a Nationwide credit card. No commission of forex purchases.

King_Of_Fools

Mercuryrising wrote: »

Although if you buy currency in M + S (or PO say) using your credit card is this treated as a cash advance or a purchase? And is the worse case scenario that they treat it as a cash advanced and whack on a foreign exchange fee.

Yes, it will be treated as a cash advance so you will be charged a cash advance fee and pay very high interest from day 1!

If you really have no cash available to you, it would be far far cheaper to put it on the overdraft of your current account (assuming you are not already maxed out) than use a credit card for cash.

Whatever happens, enjoy your holiday!

Mercuryrising

Thanks again for that and will enjoy it - I planned to do some clothes shopping out there so maybe using the credit card for that and taking half in dollars (using cash as I can offset what I need to spend normally with credit card) would be best.

rachael24_2

Good thinking Mercury...Have a good trip!

realaledrinker

King_Of_Fools wrote: »

Yes, it will be treated as a cash advance so you will be charged a cash advance fee and pay very high interest from day 1!

As I pointed out above, purchases of forex at M&S using a M&S &More card are treated as purchases, attracting 6 months 0% interest if you have just taken out the card or up to 56 days normal purchases.