If you get the best deal on travel money, it could mean getting the best buy back for your pound sterling. Learn more as we guide you on how to get the best deal in terms of holiday travel money exchange rate.
Defining a Good Deal
A good deal could mean low charges on delivery fees and other costs. Furthermore, you can compare foreign currencies online and in-store when finding for the best deal on travel money.
Taking travel money abroad is not the sole means to spend money overseas. We suggest that you explore alternatives before going on a trip.
The Costs Associated with Travel Money
Exchange rate implies the amount of foreign currency you can get in converting your money.
Travel money providers buy foreign currency at a wholesale price. This allows them to gain profit in selling the currency. This is the reason why the exchange rate differs from one provider to the other.
When checking for the best deals, the higher the number you see, means the bigger travel money you can get.
A commission charge is a fee by providers for handling and administering your order. Usually, the rate includes this fee. Though it implies 0% commission fee, the rate can be less competitive. This is because it includes this particular charge.
Certain delivery charge may be included when buying your travel money online or via phone. This charge may differ as some companies offer free delivery to your home or pick up points such as in the store or airport.
Credit Card Charges
When using your credit card to buy for foreign currency, the transaction is treated as a cash withdrawal. This entails charges on daily interest and cash advance fee.
Additionally, the travel money company can also charge you for each transaction that is approximately up to 3%.
How to Buy Travel Money
You must be aware of the pros and cons of buying travel money online or in the store.
• You’ll have better chances of getting better rates.
• It gives wide ranges of available currencies.
• You’ll have more options for you to choose from.
• You may need to wait for the delivery of your travel money.
• It comes with delivery charges.
• The chances of getting lost in the post are likely to occur.
• It’s easily accessible on the high street.
• You don’t have to wait for the delivery, meaning you can get it right away.
• You won’t have to pay for delivery charges.
• You’ll have fewer options to choose from.
• There would be limited stock available.
• It consumes most of your time to compare rates.
Can I buy in advance?
The process of buying in advance is a way of pre-ordering. You can order travel money in advance if you prefer to picking it in the store to avoid delivery charges. And, you’ll need enough time for the delivery to arrive.
However, if you don’t have much time for this, you can read our guide on: Ways to Spend Overseas: Sorting Out Last-Minute Options.
Useful Tips to Get the Best Deal
1) Focusing on the total cost and not just the exchange rate can help you calculate how much it will cost along with the other charges.
2) Avoid using your credit card to shun excessive charges; you can use your debit card or swap your available cash into your preferred foreign currency. This means your debit cards enable you to save you more.
3) You have to check the offered rates because companies offering 0% commission fee can be tricky.
4) It’s always best to plan advance and shop around for cheapest deals before taking a trip. This way, you can compare deals and save on the delivery costs. It helps you chose the best deal on foreign currency exchange rate. Finding a good deal can help you minimize expenses.
Spend the faulty way overseas and you could be losing ££s each time you shop. It’s not just getting the best options to spend – it’s also about understanding the methods of getting a good deal. The key is getting the best rate at the time.
Things to Remember
Firstly, if you withdraw cash on a credit card, it’s posted on your credit file. This is not certainly bad, but if you need a holiday loan or apply for credit in the future, this can make it difficult for you.
Secondly, the new lender might view it as a hint that you’ve no cash in your current account and that you’re so desperate for cash, you’re ready to pay high interest to get it.
In conclusion, no one knows if the pound will be greater or weaker in the future. Anyone who advises you contrarily is solely speculating. While the pound has climbed in recent weeks, with continuing uncertainty there’s no means to distinguish if this will persist.