Best method for spending money (dollars)

[NauseousNancy]

Hello,

Looking for some help regarding dollars. We are going in the summer, and have some money saved. Not sure what the best options are - should I get actual dollars, a pre paid card, or a mix of both?

Unsure of how long to wait off with brexit looming...!

Thanks for any help.

No-one knows how Brexit will affect the exchange rate. You could hedge your bets by exchanging some now and some later, but if you buy money while in the UK, it will be at the tourist rate, which is worse than the bank rate.

The best way to do it is get the right card and just spend or withdraw cash while you are there as you then get the bank rate, which is better.

Details of the right cards can be found on moneysavingexpert, but include Santander Zero or Halifax Clarity credit cards, Starling debit card and possibly some others, but these all give you truely commission free dollars at the best available rate.

If you want to get some cash now, it's always worth asking family and friends if anyone has any spare dollars tucked away, and offering to buy them off them at the current bank rate, as you won't get a better rate for buying them in the UK, and if they try to exchange them back at the bank, Post Office or travel agent, they'll get a poor rate themselves.

Thank you for the advice! My worry about using a credit card is possibly getting a worse rate than just now...definitely food for though though.

We have the Halifax Clarity and it's great, although you can't withdraw cash on it without being charged interest unfortunately, so we take cash and use card as much as possible. Remember you'll need cash for tipping.

But if you pay the card back as soon as you get home or even while you are away if you have internet banking, the interest is pennies.

I've always been too nervous to try tbh @BarbaraofSevillle I live chatted with the bank before we went away last time and they weren't very helpful, they said even if I paid it immediately it would add interest (but wouldn't give me an idea of cost- I appreciate it's not easy to work out). I've always thought getting cash on a credit card was a big no no? Have you done it?

Several times a year for years. I use it for all travel. The interest rate on mine is 12% so 1% a month, so if I borrowed £100 a month it would cost a pound, but in reality it's more money than that, but it's paid back in a week or less, so the interest is hardly anything.

Not affected my credit record as I do all sorts of other bank related things to make money - I have about 6 current accounts and the same of credit cards and have never been refused an account.

But if you don't want a credit card, open a Starling account - app based, very easy. The worst bit is having to record a video of yourself reading a short sentence to pass the ID, I was a little weirded out by that. But then you get a debit card that you can use to pay or withdraw cash for free, so just send some money to the account before you go away.

Oh thank you that is SO helpful, I've always been too afraid to try it (we already have the card but just use it for card transactions not cash) we go to the States next month so will give it a go! I will find out what our interest rate is (not sure if it's a standard rate for everyone?)

when i was in the US last year i use a combination of a prepaid card and cash

I take some cash, a debit card for cash withdrawals and a credit card for purchases. (My cc is also Halifax Clarity.)