19 cheapest ways to get travel money

Ultimately, when abroad you want to pay for only what you buy, yet by doing it the wrong way many also pay for paying, too. Here's how much spending €1,000 actually cost, in pounds, when we made comparisons on 30 July 2019 using our Travel Money Comparison tool (we assumed five €100 cash withdrawals, and 20 transactions on the cards). 

• On a specialist credit card repaid in full: £912 (see point 3)
  
• Cash, via UK's cheapest bureau (pick up in London): £923 (see point 5)
  
• Cash from M&S (non-cardholder): £933
• Top prepaid card: £923
• Using a debit card from hell: £972 (see point 8) 
• Change at airport (Gatwick South Terminal, ICE Travel Money, not pre-ordered): £1,030

As you can see, the differences can be massive, yet the winners are simple. Apply for a specialist overseas credit card, then use it every time you go.

A couple of years ago, banks and credit card providers didn't have to show a statement breakdown of what they were charging you when you used your card abroad. This all changed a few years ago, causing some confusion, with some people thinking they were only now starting to pay, though it's actually always been the case on all but a few cards.

So find out how much the cards you already have charge for use abroad – as you may not have the time to switch before your holiday – and make sure you use the cheapest (the best cards are listed in point 2). To help, we've built a How good is your current plastic? checker.

In general you don't get a better rate changing your pounds to euros, dollars, lira or dong once you're in that country than you do here. Yet that doesn't mean there aren't a few local bureaux overseas that may give tip-top rates.

The problem is there's no way of knowing until you're there, and as rates vary every day, once you're there, comparing to what was available back home is tough.

Therefore we suggest for safety you sort it before you go (if you can – some currencies, like the Lao kip, aren't available outside the country). The big advantage of that is you can use the TravelMoneyMax travel cash comparison to find the best rate from around 30 bureaux.

And getting a top rate here should usually beat relying on an unknown rate from a one-off local bureau once you're there.

It goes without saying that for safety, many like to have a wad of euros, dollars or lire in their overseas wallet before they jet off – in which case our TravelMoneyMax tool will do the job.

However, it may be cheaper to travel cashless and simply withdraw money from an ATM at your destination airport with a top travel credit card. Do this and you'll benefit from near-perfect exchange rates (which'll beat the rates offered on exchanging cash in advance). 

However, bear in mind that it may be difficult to avoid ATM fees in certain countries. From our experiences at MSE Towers, we've seen ATM fees in Vietnam, Thailand, India, the US and elsewhere – though going cashless may still work out cheaper than taking cash even after factoring in the odd ATM fee.

Remember that if using a credit card overseas, almost all card providers will charge interest from the moment you make a cash withdrawal. To minimise this, pay off the balance IN FULL while abroad. Also see the point below in regards to the potential credit score impact of withdrawing cash on a credit card.

It's also worth being aware that not all airports will have an ATM at arrivals. Others will have them but may charge fees or worse, not be in working order. If you do plan on travelling cashless, it may be worth researching the airport online before you go.

Are you part of the 'overseas wallet or purse' club? Martin's pioneered this, and it's a clever way to make sure you're prepared on holiday. His rationale is that there are some things you only need when abroad:

• Specialist overseas plastic. These tend to be pretty poor for UK use, so leave it in your overseas wallet until you go away.
  
  
• Free EHIC for emergency medical issues in Europe. See our guide on how to get or renew your free EHIC card.
  
  
• Driving licence & international driving permit. Check out when and why you need to take these, plus see our full Driving Licence Renewal guide.
  
  
• ESTA number for US travel. Check out our ESTA application guide.
  
  
• Leftover currency. Left over from previous trips, good if you can't get to a cash machine right away.

Check out what else is in Martin's overseas travel wallet.

Many car hire firms won't accept a debit or prepaid card when you come to pick up your car, and will instead need a credit card. As you'll usually be paying (or leaving the deposit) in the foreign currency, and this can be a substantial amount of money, a specialist overseas card is particularly good for this.