So you're planning on traveling abroad. But do you know how to get the best exchange rates in the UK? Many people either opt to use cash, their credit cards, or exchange currencies at the airport. Each of these has their advantages and disadvantages but in the bigger picture prepaid currency cards may be the best option.
The Advantages and Disadvantages of Each Option
The first option is to use cash. While cash is convenient and simple, nobody wants to carry around their huge travel budget with them on their trip. If you lose your wallet or your belongings, this can mean a huge disaster as your cash will be irretrievable.
The second option is to use your credit card. Many international locations accept credit cards and are convenient. However, credit card companies usually charge you extra fees to convert currencies. While the fees are not as high as you'd think, they add up and can cost you a lot of money.
The third option is to get your currency exchanged at the airport. This should only be in the case of an emergency as the fees that the airport exchange centers charge are very high. Sometimes the rates can be over 10%, taking away from your total budget.
Why Prepaid Currency Cards Are The Better Choice
Prepaid currency cards will allow you to get the best exchange rates in the UK. All you have to do is use your credit card or debit card to load up your card. The great thing about prepaid currency cards is that they can be used as a regular credit card but without the high fees associated with international payments.
What's more, many currency cards come with the same kind of benefits as credit cards. You can earn reward points, get fraud protection, and you can return goods if the merchant offers a refund policy. If you lose your currency card, you can let the company know and transfer the remaining money into a new one.
Manage You Money Easier With Currency Cards
When traveling, it's easy to get carried away and spend more than you can afford. According to statistics, most travelers overspend over their planned budget. This is because there are always things that come up where you need to spend additional money.
So if you want to stick to a tight budget, you can do so with a currency card. In addition to getting the best exchange rates in the UK, these cards will not be usable once your budget is reached. Additional money will not be transferred from your credit card or debit card into your account.
Thursday 17 June 2010, 12:18pm
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