Travelers checks or prepaid debit card

A banker once suggested to me to apply for a credit card just for my trip and request a credit limit between $500 to $1000 if your on a strict budget. I like this idea and will do this before going to Italy this fall.
So true about Travelers Checks. You wouldn't want to waste time finding an American Express office to cash them. And, if you do find a bank that will cash them, the fees are up the roof to cash TC. I found that out when I was in Berlin this past November.
I'll bring only a few TC this time in case if the ATM's are down. Also I'm going to get some Euros from my bank before I leave and put them in a money belt.
Have a great time in Germany! You will love it!!!

Just a thought on the CC for a single trip. I'm no accountant, but I think that would reek havoc on your credit report/score. Opening the new account, the low dollar limit, presumably charging against a good percentage of your credit limit, and then cancelling the recently opened CC all have a negative impact on your credit history/score. Just my 2 cents (which I charged on my CC).

getting a side checking/debit account may not be a bad idea - putting in a limited amount of cash (and being able to transfer it in.out as needed). the low limit CC card may be good - but not if its way lower than your others (as someone suggested - may have wierd credit score effects). Then just only use that card for online or travel purchases. As far as Travel Chks and other pre-paid cards = no good for most since the fees and hassels or both could be too much trouble. lots of other ways that might work better.

Phil: Good question, we get it all the time and are glad to help out. Here's the bottom line: Travelers checks are not a good choice in Europe in this day and age, because it's very difficult to find places that will accept or cash them nowadays. Go to this link for detailed advice from Rick Steves (Europe Trip Money 101) on how to handle the money aspect of your trip while in Europe, and note his 1st sentence about traveler's checks: Rick Money 101 Bottom line: ATM card with 4 digit pin (no letters) to get cash; most of us use credit cards for big expenditures.

Kent forgot to comment on the prepaid cards. Because these are not a regular debit or credit card they are not required to disclose fees. Read the fine print carefully and understand the number especially the currency exchange rate. I looked at one of the prepaid cards last year and the fees were around 12%, most of it buried in the exchange rate, and very inflexible on refund issues. Know what will happen EXACTLY if the card is lost or stolen. In general the most economical route is a debit card for cash from an ATM and a credit card such as Capitol One that does not charge a currency exchange fee.

Oh !!!! Eric has a point --- the old unintended consequences raises its ugly head. A low credit line on a card would impact the score and the opening and closing of a credit card would be negative. Just use your regular cards and exercise a little discipline. Probably not a wise move to get credit cards just for the trip.

Use the credit card you already have and plan to stick to your budget. If you have some unforseen emergency, it is better to have your card for that emergency. My brother-in-law was trying to be frugal once on a business trip and got delayed overnight out of town without a credit card to get a room for his unexpected extended stay. He was embarased to ask his boss to help him pay for his room and extra meals. From that point on he always carried his credit card with him. He is still frugal and careful with his card.