Financial experts issued urgent credit card warnings to British people on holidays. Martin Lewis has revealed why it is dangerous to use this card to withdraw cash.
It can be difficult to know the best ways to spend money abroad. Some countries are still very cash-first, while others want to accept card and phone payments.
And when it comes to some destinations like Morocco, you can't get currency from the UK before your trip, making things a bit more complicated. But wherever you travel, Martin Lewis recommended using your credit card to withdraw cash.
Writing on his website to money saving experts, he explained more. Martin said: “Would you withdraw cash with your overseas credit card?”
He said this could have a negative impact on your credit rating. “It could affect your credit rating,” he continued.
“This question has been so many because we are warning about credit card ATM withdrawals in the UK, and many lenders see it as a metric of debt problems.”
However, doing this from time to time is not usually a problem. He said: “But if you do it overseas on occasion with a specialized card, it's not a big deal.
However, he added that using UK cards can be “a little difficult” in some countries.
This includes:
In Japan, special ATMs may be required to use Chinese international cards.
In addition to this, Martin told people not to use credit cards to buy cash or load prepaid cards.
He added: “You'll probably pay the fees and interest.
“Most credit card providers count these as cash transactions. So, the withdrawal fees and interest on your bill. It's always better to use a debit card if possible.”
If you want to get currency before it disappears, you can use MSE's online travel money comparison tool here.
