credits cards in the UK

Both Capital One and Chase United Explorer offer Visa's that do not charge foreign transaction fees. However, we use credit cards sparingly, and mostly rely on cash out of ATM's, using a Capital One checking account with ATM card with no transaction fees.

If you get a checking account at TD Bank, they have no markup on the exchange rate for foreign ATM withdrawals. A basic account with a $100 minimum charges you $2 per foreign ATM withdrawal, and a fancier account with a $2500 minimum charges $0 per withdrawal. TD will give you an ATM card right when you open the account, so you can get this quickly and easily before your trip. Note that this is about using your TD debit/ATM card, not a TD credit card (which does have foreign transaction fees).

Hi Betsy, I recently upgraded my credit card with Southwest Airlines Chase to an card with no foreign transaction fees, which I think is what you are looking for when you say "does not charge an exchange rate when used." There is always an exchange rate when converting any money from one currency to another. However, many credit card companies also charge an additional small fee for the transaction. This is what you can avoid. I used my credit card extensively on my trip to London without any problems. I chose not to carry large amounts of cash. Though this is not Rick's preferred method, it worked well for me. Ask your current credit card company if they offer a card without a foreign transaction fee. All the best,
Ann

Look at some numbers: Assume a two-week vacation which typically would have twelve days of using the credit card internationally. Now, assume an ungodly expenditure rate of five hundred bucks a day. That's six grand. Next, figure that three-quarters of that is put on a credit card by a neophyte - - $4500. FTFs run about two percent, giving a total expense of exactly ninety American dollars or $7.50 per day. Wait, there's more! You would have been cobbed one percent if you'd sucked the money out of an ATM, so you have to half the last number and you're down to $3.75 of differential cost. How much is a daily gelato? Somebody more knowledgable than I can address what switching credit cards around does to your credit rating, if that's a factor. We spend nine months a year out of the country, six months of it with a rental car, usually. Last year my FTF total was just under $250 or about a dollar a day.

We did switch one of our credit cards before our most recent trip. I suggest this, depending on what kind of credit card you have right now. Our new card does not charge foreign transaction fees (typically a percentage of each purchase) and gives us better kick-backs compared to the card it replaced (also a percentage of each purchase). We got a Capital One Visa travel card that has a pretty good kick-back - generic points you can redeem for a wide variety of rewards. The exact card escapes me at this point, but you can reseach the best option for yourself. We run as much as we can through the card (and pay it off in full each month). It's a good way to get an indirect discount on purchases and to reduce travel costs. One note - I suggest that you carry some GBP with you in case you have a problem with the card. European cards have a chip that American cards don't have. We were in London in July and did have a problem using our card at one pub. Rather than wait for the waiter and manager to figure out how to scan the card, we simply paid with cash. One more note - be sure to call the credit card company before you leave to let them know what dates you'll be overseas so you don't end up with a fraud stop on your card. Have a good trip!

The question then, as it appears to be being re-posed above, should be, what do you wish to do with your excess money? Do you wish to buy an excess daily gelato? If you do not care to make this extra expenditure, do you wish to offer this money to a charity where it can do some good? Or are you content to add to the profits of some faceless corporation (bank) that will pass it on to its executives? We don't really care for gelato, so we will make every effort to do some good with the money that we can save.
BTW, we have several cards along with our card that has no FTF. And on all the others, that fee is 3%, not 2.

Dear all, I just checked with my credit card company (Capital One). Good news! They do not charge foreign transaction fees. So we're all set. Thanks much! I consider this line of conversation ended... Take care!

We called capital one and made sure they knew of our travel dates, all set-or so we thought! We recently re fi our house before the trip and half way thru our vacation. Well-capital one decided half way thru our trip that we were using our card to much. They put a stop on all transactions. I'm sure this is a rare situation that happens-we are always on time with payments-but it REALLY happened at a terrible time! Just warning you-take a backup card or cash so you won't be stranded!

Thanks Ed - I've long felt that this board was way too eager to have people switch cards or get new ones just for a two week European vacation. The money saved just doesn't seem worth it compared to the time and effort to get and maintain a new card. For more frequent travelers, that is a different story. Credit scores are complicated beasts that few fully understand. But absolutely, certain people's credit score will drop for opening a new credit card account. Usually those with lower scores to begin with, as they are taking on more potential debt. I also don't recommend it while applying for loans like mortgages or autos.