Cash Advances

Cash advance is the term used by credit cards and is treated as a loan with extra fees and interest charges. A debit card allows you to take cash from your checking account and the only fees associated are some service/currency conversion fees applied by the card issuer.

It is always cheaper to take cash from an ATM machine via a debit card rather than used a credit card.

Since you asked that same question earlier, what is it about those responses that you do not understand?

Why not just bring cash with you? You can get pounds at the bank usually (they may have to order them for you). And use your credit card when necessary over there. Use cash advance as a last resort because if the horrible finance charges, fees and overall interest.

General rule of thumb: Use a credit card for major purchases and use a debit card to get cash from ATMs for everything else. Be sure to notify your card providers that you will be in England so a computer doesn't freeze your card for what it recognizes as unusual--and therefore possibly fraudulent--activity.

See this article by Rick Steves.

Tami:
Some people are reluctant to carry large amounts of cash plus the exchange rate you get at your bank may not be as good as from the ATM there.

Jeff, the fees from the ATMs will negate any savings you get in the exchange rate. I have gone to London twice, both times with 300 pounds in cash. Maybe I am an idiot but it worked for me!

I dont like the idea of my credit card info being flung all over the UK, and I know what I am spending.

I got a better rate because I had bought my pounds for $1.48 to the pound before my last trip in April and during the trip the exchange rate jumped to $1.75 to the pound, per my bank.

I pre-pay my hotel on line and I have rarely had to use my credit card.

Tami
Where do you suggest to exchange dollars into pounds here in the US., my local bank?

Tami...you were lucky...had the rate gone the other way, you would have lost money, compared to those who used ATMs for withdrawals. And they don't risk losing 300 pounds if mugged. The question I ask myself...would I carry $500 on me if I was travelling here at home? The answer, for me, is no.

,,,,the fees from the ATMs will negate any savings you get in the exchange rate.....

That is absolutely false. You will pay a premium of 5 to 10% to purchase any currency in this country. ATMs will charge on average 3% with some less than that. Under the worse situation you save 2% and maybe as much as 6 to 8%. Using a debit card at an ATM is absolutely the most economical and convenient way to obtain foreign currency.

Susan:
you can order them from your bank if they do not do international money at the branch. Usually main branches have the cash in house.
Even just carrying 100 GBP before you get there would probably help out.

The rest of the non-approving peoples:
I am not saying anyone HAS to do what I do. I am just inputting what I found was easiest for me. I didnt have to worry about finding atms or having credit cards being rejected or having info stolen. Being mugged you can also lose your cards, even if you don't carry cash.

I dont keep the cash in a purse, I keep it in my bra and there is no way anyone is getting it. As far as Ive heard and read, most muggings usually involve purse snatchings and maybe pick pocketing, but not random intimate gropings.

I only have that much cash on trips because I am a horrible "saver" so I convert my money into pounds in the months before my trip, so I cant easily spend it until my trip.

I also make sure I do not look like a tourist as to make myself a target for muggings in the first place i.e. no fanny pack, backpack, baseball caps, visors, touristy walking shoes, obvious maps, etc...

Susan, After multiple trips to Europe since the middle 1980's, we have found using the ATM is the only way to go. They are everywhere and offer the best rates. You don't have to go looking for them because they are pretty much all over. Bring some pounds to start with if you like and never get a cash advance because you start paying fees right away! Good luck! Cheryl

Using a bank ATM in Europe does give the best exchange rate -- even when you factor in fees that you may be charged, such as foreign tranaction fees and foreign ATM use fees.

This is a proven fact. You can check the daily exchange rate for Euros on the VISA site -- http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp. This rate is pretty accurate and will give you a good idea of what you will pay for Euros at an ATM in Europe.

Where it says "Enter Bank Fee (0 - 5%)" if you put 0%, that will give you the approximate bank rate for Euros. In most cases, you won't get that rate. If you put in 5%, that will give you the rate you will most likely get if you buy Euros from a bank in the US -- such as Bank of America or Wells Fargo -- before you go.

But for ATM withdrawals of Euros, most banks will charge you from 1% to 3%. That is clearly a good savings over buying Euros in the US at a bank.

Finally -- beware of exchange bureaux, such as Travelex, that you see at airports and other places. These have very high fees -- could be 10% or more over the bank rate.

such as foreign tranaction fees and foreign ATM use fees.

Open a Capital One Direct Banking money market fund with ATM card and use the card only at bank ATMs in Europe. As of July 2009 (fingers crossed this remains the same for future trips!):

foreign transaction fee: 0%
ATM fee: $0

You also get the benefit of the money market fund's slightly higher interest rate (stinks at moment, but still higher than local bank even lower rate) to build your travel fund.

Tyler, she wouldnt be buying Euros, she is going to England.

Does it do the same for Pounds?

"Tyler, she wouldnt be buying Euros, she is going to England. Does it do the same for Pounds?"

Sure it has a lot of currencies. Check it out. The link is in my previous message.

Thanks everyone, I'm new to this. I appriciate all the great imput, you've help alleviate the money anxiety!