What to avoid when buying your foreign currency for your holiday

Travelling abroad inevitably means you will need to exchange your pound sterling into the currency of your chosen destination. Many holiday makers forget to consider all the available options to ensure the best exchange rate for their money.

Many travellers exchange their holiday money at their local foreign exchange bureau, but what this option doesn’t show you is if you could get a better rate elsewhere. In today’s competitive market you can also purchase your chosen currency online, the advantage of this option is the ease at which you can compare all available rates in one place and opt for the best one for you.

Unfortunately many people fall into simple traps that ultimately take advantage of a holiday maker’s poor planning. One such trap is purchasing your currency with the use of a credit card. With the average UK adult owning approximately three such cards it is no wonder that so many people make this mistake. Because purchasing your foreign currency in this way is in fact classed as a cash advance from your provider, you will find yourself slapped with an unexpected cash advance charge. It is worth noting that this service is not free of charge and you could certainly benefit from purchasing through an alternative means.

Travelling to another country inevitably brings about that long list of important things to organise, but one thing you shouldn’t overlook is leaving the exchange of your holiday money until the last minute. Exchange rates at the airport are notoriously known to be the worst on the market. The reason for this is that they are targeting a specific audience, the one that has no option but to purchase at a rate that could be up to 10% lower than at a city centre branch, so always make sure you purchase in advance.

It’s very easy to exchange more money than we will actually need during our time away, and sometimes this might be a safe option. You should always consider the buy back rate which can often be at a lower rate than you originally exchanged your money for. If you are intending to take out more than you are likely to spend then look around for a service that offers to buy back at the original price.

So try to keep up to date with the current exchange rates and no the market’s movements. Shop around for the best deal available, budget your money and always buy in advance of the airport to ensure you get the best deal.

Or you can enquire about our currency exchange software today.