Are you planning to travel abroad? Are you worried about the security of your money? Consider getting a travel money card! Travel money cards are prepaid cards that allow you to store multiple currencies and make payments in different countries. They are a convenient and secure way to manage your money while travelling abroad. With a travel money card, you can easily budget and manage your finances while travelling.
How do travel credit and debit cards work?
Travel credit and debit cards work the same way as regular credit and debit cards. When you use a travel credit or debit card, the money you spend is taken out of your account right away. The difference is that the card is accepted in multiple currencies, allowing you to make payments in the currency of the country you are visiting. Additionally, travel cards typically come with features such as travel insurance, cashback, and bonus points.
Travel card top tips
Pay it off in full every month
Specialist overseas credit cards can be a great way to pay for your vacation, but only if you’re able to pay off the balance in full each month. To ensure you don’t end up paying more than you bargained for, it’s important to set up a direct debit to pay off the balance in full every month. Otherwise, the interest charges can quickly outweigh any potential savings from using a card with a low foreign transaction fee. Additionally, be sure to check that your direct debit is still active if you don’t use your card for more than a year.
Always select the local currency
When making payments overseas, it’s always best to choose the local currency instead of pounds. This way, your card will do the currency conversion for you, providing you with the best possible exchange rate. However, if you’re using a standard credit or debit card, you should check the ‘non-sterling cash fee’ displayed on the card machine. If the fee is under 2.5%, it’s better to choose pounds. If it’s over, it’s better to go with the local currency. With a top overseas card, always choose the local currency, as this provides unbeatable exchange rates.
Use your card in shops, cafés, bars and restaurants instead of withdrawing cash
If you have a top overseas credit card, using it will almost always be cheaper than using cash. Although there may not be cash withdrawal fees, you will still pay interest on the withdrawal until you pay it off. This is even more true for non-specialist credit cards, as you will have to pay a non-sterling transaction fee as well as interest on cash withdrawals. For debit cards, spending is still cheaper as there is no interest on a cash withdrawal, but you will still incur a fee and the non-sterling transaction fee when you use a cash machine.