Get the Best Foreign Exchange Rate Before Leaving Your Country
You must have been in a situation wherein before going on a vacation, you spend months in planning out all the important details. The whole process involves surfing through guide books, preparing an itinerary, looking out for the most affordable hotels and airfares, etc. However, the most important of all things that you usually ignore is to look out for the best foreign exchange rates. This is because you probably believe that fx rate is the same everywhere. But the reality is that the way you make your conversions can have a huge effect on your trip cost.
The most important point worth remembering while trying to get the best foreign exchange rate is never to leave your country without getting the money converted. The most obvious advantage you will get by doing this is that of convenience as you will have local currency in your hand when you land at your destination. Apart from this, getting your currency converted at other places will give you a terrible fx rate.
Another option to get a favorable fx rate is by making payments through your credit card such as MasterCard, Visa, American Express and Diners Club. These help you in obtaining the wholesale fx rate on all the purchases made. This option of making payment also provides you with consumer protection in case of any future disputes. However, you must refrain from using credit cards for cash withdrawal from ATMs. This is because in addition to the conversion fee, you will also be charged a cash advance fee along with an immediate charging of interest by the issuer of your card.
In case you are finding it difficult to locate an establishment or ATM that takes plastic, you can get your dollars or traveler’s checks exchanged. But make sure to use a bank for that purpose. This is because most of the times the exchange kiosks or hotels offer you the worst fx rate. And finally, make sure you do not convert a lot of currency in one go so as to end up with unspent foreign currency at the end of your trip.
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