02 May Travel Time!
Summer is swiftly approaching and along with it comes the travel season. For travel and convenience, why not try something new? Your credit is precious and good credit comes with a price. One way to preserve it is to give your credit cards a rest and rely on pre-paid currency. For some, swiping is not an issue because you know that your balance will be paid in full shortly. Conversely for others, you know that once you swipe there may be months of debt waiting for you that you have little or not means to repay. Avoid this headache and cumbersome responsibility with a much safer option. Free yourself with the convenience of pre-paid currency!
Who wants to be stuck in one place when the travel season arrives? Prepaid cash cards are convenient because they have the look and feel of a traditional credit card with none of the risk! These types of cards tend to be issued by finance companies specializing in currency exchange. These cards also allow the consumer to preload money from your bank account onto the card. Any funds added to the card will retain the current exchange rate.
Travelex and Caxton FX are just two of the companies that offer such cards. They tend to be issued by specialist money changing companies. Prepaid cards allow you to pre-load money from your bank account onto the card, fixed at that day’s exchange rate. Lots of people think that the current euro/sterling rate is attractive at around €1.24 to £1. But others think it might go to €1.30 – or it could just as easily go back to €1.15. With a prepaid card, you get the rate on the day you convert your cash.
If traveling to Europe seems to be out of your range, what about a cruise? Many cruises originating on U.S. territory end up in other countries. In order to make purchases without hurting your credit. Getting hold of a card is easy for anyone with a bank account. Typically applications are submitted online. As part of the application you would choose the currency in which you would like your card denominated then load it with funds from your current account and wait for it to arrive in the mail . The fact that you can top up and check your balance online or by phone in some cases makes this a so much more friendly option.
How Does a Prepaid Card Keep My Credit Luxurious?
Because there is no overdraft facility so you cannot run up a debt on any prepaid card. This allows you to budget exactly for the amount of money you want to spend while you’re away.
Prepaid cards are typically linked to the Mastercard or Visa network and are protected, like bank cards, by a chip and pin system. But, unlike bank cards, they are not connected to your bank account or credit card account. So, if lost or stolen, fraudsters cannot get access to your money beyond what you have loaded on the card.
The obvious advantage over carrying large amounts of cash is that if your card is lost or stolen and you report it immediately, you have access to a replacement card with any unused funds transferred. Some card issuers will provide this service for free and some for a small fee, due diligence is recommended.
You should definitely treat a currency card like cash in your wallet. It’s up to you to guard your card and keep your pin secure. In the event that your card is stolen, it is unlikely that you will have funds refunded if, for example, you wrote down your pin for a thief to find with your card. .
What Else Do I Need To Know?
If you are sure you will pay the balance off at the end of the month and do not wish to incur interest charges prepaid currency cards will be a great fit for you! Conversely, if you are not so disciplined a prepaid card can be a good way to budget, but only if you use up the entire balance on your vacation. Be sure not to leave any cash on the card, otherwise the card company ends up making money off of you.
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