Is it better to use credit card or exchange money?

Always choose to pay in the local currency to avoid bad exchange rates. And remember, if you withdraw cash from a foreign ATM using a credit card, you'll likely be charged interest until you pay it back.

Is it cheaper to use a credit card or cash abroad?

Credit cards are always cheaper when you travel abroad, even better if you have a rewarding credit card. And for cash, you can use your debit card.

Should I convert currency when using a credit card?

If you're referencing credit card transactions then ALWAYS choose the local currency. If you choose dollars you'll get a bad or VERY bad exchange rate. You should also have a US credit card that doesn't charge foreign exchange fees.

What is the cheapest way to pay for things abroad?

Use a prepaid card

You are charged at the exchange rate each time you use these cards abroad. Travel prepaid cards, or currency cards, are loaded with a foreign currency instead of sterling, which means you are charged a single exchange rate at the point of topping up the card, rather than every time you use the card.

What is the cheapest way to exchange money?

Banks and credit unions are often the best places to exchange currency before a trip, especially if you're an account holder. Major banks typically offer currency exchange services at lower fees than currency exchange kiosks, and some banks may even waive fees for premium account holders.

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How to exchange money with no fees?

Prepaid travel cards can be loaded with currency and used abroad without paying foreign exchange fees. You can load a prepaid card with a specific foreign currency or a variety of different currencies, depending on your travel plans.

How do I avoid exchange fees?

Should I use my debit or credit card abroad?

Credit cards are likely to remain more widely accepted than debit cards, especially cross-border. However, withdrawing money from ATMs abroad and the currency exchange associated with international transfers are often much cheaper with a debit card than with a credit card.

Which credit card is best for travel?

Is it best to pay in euros or pounds on a credit card?

Always select to pay in local currency

Whether you're paying in a restaurant, bar or local souvenir shop, don't agree to the transaction being in pounds. It could cost you more than paying in the local currency. Point-of-sale currency conversion rates are set by the retail outlet and they're usually less favourable.

What credit card has no foreign transaction fees?

Best Credit Cards With No Foreign Transaction Fee of August 2025. Discover it® Cash Back: Best feature: Cash back on everyday purchases. Hilton Honors American Express Card: Best feature: Hilton hotel rewards. The New United Gateway℠ Card: Best feature: United Airlines rewards.

Will I get charged for using my credit card abroad?

Depending on the credit card you have, and the lender, you may be charged a fee for using your card overseas. If you're given the choice to pay in the local currency, it's typically cheaper to do so.

Which UK bank card is best for abroad?

Recommended Provider Starling is a popular choice for travellers, because it lets you spend on your debit card abroad without racking up a huge bill. Starling is fee-free for all purchases and cash withdrawals, unlike rival Monzo (see below).

Is it better to use a credit card or exchange money?

Use a credit card with no foreign transaction fee when possible. Or get your cash as local currency from a local ATM when abroad or from your bank before your trip. If you do decide to use a currency exchange, do your research and assess the exchange rate and other fees beforehand.

Does Tesco credit card charge for using abroad?

Overseas fees on Tesco credit cards can add up quickly, especially if you're abroad for a little while. The bank charges a 2.75% fee every time you spend outside the UK.

How to pay abroad without fees?

Option 2: Travel debit cards. You can also get debit cards that don't charge 'non-sterling transaction fees'. Here, you usually need to apply for a new bank account.

Should I exchange money before I travel?

Even with processing fees, ordering currency from your bank before departure usually saves money compared to exchanging cash after landing. If you absolutely must exchange money in an airport, use a reputable company like Travelex, which is known for fair exchange rates and low markups.

How to avoid international transaction fees on a credit card?

Which banks don't charge exchange fees?

TSB, Bank of Scotland, Lloyds and Halifax all offer premium current accounts, which are fee-free to spend and withdraw from abroad but which charge a flat monthly fee instead.

What is the least expensive way to exchange money?

Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, often either have ATMs overseas or allow you to use their cards overseas without fees.

How much cash can you carry legally from the UK?

If you're travelling abroad from the UK with £10,000 cash or more, you'll need to declare it with UK customs. This includes notes and coins, bearer bonds, travellers' cheques and other cheques (including those that are signed but not made out to a person or organisation).

How many active credit cards should I have?

There's not a one-size-fits-all solution for the number of credit cards a person should own. However, it's generally a good idea to have two or three active credit card accounts, in addition to other types of credit such as student loans, an auto loan or a mortgage.

Can I pay my mortgage with a credit card?

Lenders don't typically accept mortgage payments by credit card because they would have to pay a credit card transaction fee, which can be as high as 3.5%. You'd also be paying a secured debt with an unsecured debt, possibly with a higher interest rate.

What is better, Visa or MasterCard for travel?

The differences between Visa and Mastercard credit cards are relatively minor. Overall, Visa cards generally offer slightly stronger travel-related benefits and protections, while Mastercards may unlock access to more discounts and exclusive experiences.