Money options and Exchange rate

Feb 10th, 2002, 07:45 PM
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Money options and Exchange rate

So I am finding the best thing to do is make advance payments on credit card, Capitol One, and use it as my primary money source. It charges 3% or $5, the greater.

Are the airports or banks about the same exchange rate for Euros and Kroner?
Feb 10th, 2002, 07:54 PM
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I don't understand how that works. If you have the money to make advance payments, why not just put that money into your checking account and use an ATM card to withdraw it when you need it. Most banks only charge $1.50 and some don't charge at all. I usually withdraw about $300 at a time, so that would be a $9 charge. Or if you withdrew $100 at a time, three times would equal $15. And if you borrow it on the credit card, doesn't the credit card company still charge you a daily interest on the "borrowed" amount -- even if you have paid ahead?
Feb 10th, 2002, 07:55 PM
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Well, I don't know the answer, but can I jump aboard here too, I was going to post a similar thread. Would it be better for me to exchange dollars into pounds here in US, or go to a bank in the UK and do it? where would i be feed more?
Feb 10th, 2002, 08:07 PM
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Don't exchange dollars for pounds ANYWHERE. Just leave your money in your bank account and use your ATM card to get cash as you go along. Take out money every few days as needed. Much cheaper than exchanging money.

If you decide to take a few travelers checks for back-up or emergencies, take $ checks since you can use them back home if you don't use them in England.
Feb 10th, 2002, 08:26 PM
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I don't understand why ever taking cash advances on a credit card could be the best thing to do but I suppose it wouldn't be too bad if they really did only charge 3 pct and you took out several hundred dollars (taking out smaller amts frequently would be really expensive at the $5 rate, obviously). An ATM card should be better if your bank's ATM fee was less than that (some banks do, however, charge more than $1.50 per ATM withdrawal, I've seen at least one person on here who said their bank charged $5 which is really high). I think (but am not sure as I wouldn't ever do this) they might not charge the percentage interest if your account balance had a credit that would cover the amount you withdrew. I think they always charge the cash withdrawal fees regardless of any credit balance, however, some people aren't aware of that. I don't know why one would do this as anyone with a credit card should have a bank account with an ATM card, I would presume. I have heard some banks charge a percent conversion fee even on ATM cards, though, so you just have to understand all the charges and compare. Maybe's L's bank charges a lot for ATM withdrawals, then I suppose it could be a plan. I wouldn't know about kroner exchange rates as I haven't been to Scandinavia, but airports almost always have worst exchange rates than banks (except in Czech Republic, surprisingly). However, if you're using a card, I don't see what difference that makes as the exchange isn't based on the location of the machine. Maybe I'm not understanding this. Also, I don't know of any foreign currency where you'd get a better exchange rate in the US than in the country where it is the native currency.
Feb 10th, 2002, 08:29 PM
Bob Brown
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I have found that if I buy foreign currency locally, I pay about 5% more for it than if I use my ATM card in Europe.
Up until now, I used my credit card liberally in Europe.
But most banks now sock an extra 2% on as a conversion fee. Visa or Master Charge always added a 1% fee, but I accepted the 1% as the price I paid for not carrying large amounts of cash with me. Now, I am trying to find a credit card that does not have the extra 2% fee added on. (If you know of one, please email me the name of the bank.)

If you live in a large metropolitan area you might be able to find a bank that does not add on a large charge when you buy foreign currency.

The way they do it is to adjust the exchange rate in the bank's favor, but you end up paying anyhow regardless of how they juggle the figures around.

I don't see what the advantage is to paying a credit card account in advance.
The amount you charge in Europe is going to be increased by 2% by the bank and 1% by Visa or MC before it gets to your account. So wherein lies the advantage? You are just giving the bank free use of your money. I will admit that the interest rates are low right now, but your money is tied up and cannot be used by you unless you use your charge cards, at a 3% premium for the honor of having your overseas transactions converted.

If you are arguing that you can pay in advance and avoid penalties, then urk!! I am on the wrong side of the money tree.
You could set up your banking account so that you could move money from checking to pay off the credit card bill from any Internet cafe in Europe.

Feb 11th, 2002, 04:47 AM
Posts: n/a
L, how on earrth does a cradit card advance look like your best optoin? I can hardly think of anything worse. Why pay all those fees and interest on a credit card advance when you can use an ATM card?

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