When you go on vacation, especially if you’re traveling overseas, it is never a good idea to carry cash with you, as it is not very safe. Should you happen to drop it or if someone were to rob you, you are just out of luck, as there is no way to get it replaced.
Traveller's cheques: how long will they last?
This is why things like traveller’s cheques became the chosen way most people would pay for things when they traveled. But traveller’s cheques have been replaced by the use of plastic cards, which are not only easier to carry, but also quicker to use and are more convenient, as well. Rather than use a credit or debit card you already have, you might think about using a prepaid travel money card.
Using credit cards abroad could clear out your cash
A prepaid travel money card is like a credit or debit card but it offers some advantages. For one thing, credit cards are going to pack on additional interest for anything you buy. Unless you are planning to pay your travel expenses in the full that same month, those interest charges are going to pile on really fast. With a prepaid card, there is no interest. The companies that offer these types of cards make their money from fees that are charged when you add money to it and when it’s activated. But there are going to fees with whatever method you choose, even if you exchange cash for a foreign currency, there are likely fees involved there as well.
Prepaid cards are the best way to spend money abroad
Also, with a credit card, the amount you can spend is only limited by your total credit limit on the card. This will usually allow people to spend way more than they intended to spend. With a prepaid travel money card, you are limited to the amount you put on the card to begin with. Only want to spend $1,000? Then just put $1,000 on the card and you can’t go over that unless you add more to it later.
With a debit card, you are also limited to just the money you have in the bank and cannot overspend, using money you don’t have, like you can with a credit card. The reason using a prepaid travel money card is better than a debit card is because if your debit card is stolen, a thief can easily clean out your entire bank account, rather than just the amount you put on the prepaid card. While you can report the theft and will eventually get that money back, you will likely rack up a ton of late fees on bills you can’t pay yet.
The FairFX card also has amazing exchange rates, and no hidden fees. Apply today, ready for your next trip.
Friday 26 February 2010, 12:19pm
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