Martin Lewis issues urgent holiday warning for Brits using their credit cards
Martin Lewis issues urgent holiday warning for Brits using their credit cards
The finance expert has warned Brits against using a credit card to withdraw cash while on holiday
Martin Lewis issued a warning about using credit cards abroad
(Image: Getty )
A finance expert has issued a pressing credit card warning to Brits on holiday. Martin Lewis highlighted the potential risks of withdrawing cash using your card.
Understanding the best way to spend money abroad can be challenging. Some countries still predominantly operate with cash, while others readily accept card and phone payments.
For some destinations, such as Morocco, obtaining the currency from the UK before your trip is not possible, making things even more complicated. However, regardless of your destination, Martin Lewis strongly advises against using your credit card to withdraw cash.
In an article on his website Money Saving Expert, he elaborated further, saying: "Withdrawing cash on a credit card abroad?".
He pointed out that this could negatively affect your credit rating. "It could impact your credit rating," he added.
Article continues below
"We receive this query frequently, as we caution against credit card ATM withdrawals in the UK, due to the risk of high interest and many lenders viewing it as an indicator of debt problems."
Doing this sporadically is usually not an issue, however. He stated: "Yet if you only do it occasionally abroad on a specialist card, it's not a biggie, just don't overdo it and pay it off in full."
He also noted that in a few countries, using a UK card can be a "bit trickier". This includes:
In Japan, you may need special ATMs to use international cards
In China, hotels take cards, but elsewhere Alipay is easier
In India, some shops & restaurants won't take international cards
Adding to these tips, Martin advised against using a credit card to purchase cash or load a prepaid card, warning: "You'll likely pay fees and interest."
He explained the reason by saying, "Most credit-card providers count these as a cash transaction - so charge withdrawal fees and interest. It's always better to use a debit card if you can."
Article continues below
For those looking to exchange currency prior to travelling, you can use MSE's online travel money comparison tool available here.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
2 hours ago
- South Wales Guardian
Millions of Brits risk losing over £500 from bank account
According to reports, millions of Brits are flushing away over £500 a year by leaving their cash rotting in low-interest 'zombie' bank accounts. New research reveals more than half of UK savers are hoarding their hard-earned cash in zero-interest current accounts. The research, by Opinium for Hargreaves Lansdown, found 56 per cent of savers are putting money in accounts that give them absolutely nothing back – a 20 per cent rise from last year. Oil prices begin to stabilise 67 per cent of 18–34-year-olds admit to stashing savings in current accounts, rather than moving them to proper savings pots. 81 per cent of higher-rate taxpayers and 83 per cent of investors are also making the same mistake. £297bn is currently held in accounts earning no interest – up by about a fifth in a year. £3,365 is the average amount held in current accounts, rising to £10,180 for the highest earners. £114 is what the average saver loses in spending power after one year at 3.5% inflation, or £344 for higher earners. Researchers calculated that if you had the average of £3,365 savings in a current account, and inflation was running at 3.5%, after a year, your money would have the same buying power as £3,251 today – so it would have lost £114 of spending power. But if you moved the cash to a competitive easy-access account, you could earn a return that's higher than inflation. Recommended reading: Sarah Coles, personal finance boss at Hargreaves Lansdown, said: 'You don't have to transfer cash from another account in order to spend it, you just spend as normal – and find yourself eating away at your savings." Ms Coles said: 'With inflation around 3.5%, a household holding £3,365 in a zero-interest account would lose £114 in spending power in just one year.' Those sitting on £10,180 would lose £344 annually – and over five years, £3,365 could shrink by £532. She added: 'These sites let you track everything in one place – and snap up the best rates without drowning in paperwork."
North Wales Chronicle
2 hours ago
- North Wales Chronicle
Millions of Brits risk losing over £500 from bank account
According to reports, millions of Brits are flushing away over £500 a year by leaving their cash rotting in low-interest 'zombie' bank accounts. New research reveals more than half of UK savers are hoarding their hard-earned cash in zero-interest current accounts. The research, by Opinium for Hargreaves Lansdown, found 56 per cent of savers are putting money in accounts that give them absolutely nothing back – a 20 per cent rise from last year. Oil prices begin to stabilise 67 per cent of 18–34-year-olds admit to stashing savings in current accounts, rather than moving them to proper savings pots. 81 per cent of higher-rate taxpayers and 83 per cent of investors are also making the same mistake. £297bn is currently held in accounts earning no interest – up by about a fifth in a year. £3,365 is the average amount held in current accounts, rising to £10,180 for the highest earners. £114 is what the average saver loses in spending power after one year at 3.5% inflation, or £344 for higher earners. Researchers calculated that if you had the average of £3,365 savings in a current account, and inflation was running at 3.5%, after a year, your money would have the same buying power as £3,251 today – so it would have lost £114 of spending power. But if you moved the cash to a competitive easy-access account, you could earn a return that's higher than inflation. Recommended reading: Sarah Coles, personal finance boss at Hargreaves Lansdown, said: 'You don't have to transfer cash from another account in order to spend it, you just spend as normal – and find yourself eating away at your savings." Ms Coles said: 'With inflation around 3.5%, a household holding £3,365 in a zero-interest account would lose £114 in spending power in just one year.' Those sitting on £10,180 would lose £344 annually – and over five years, £3,365 could shrink by £532. She added: 'These sites let you track everything in one place – and snap up the best rates without drowning in paperwork."
Scotsman
3 hours ago
- Scotsman
Brits' go-to money hacks revealed
Many have turned tp tools such as spreadsheets to help them keep track | Shutterstock Finance-savvy Brits have revealed their go-to money hacks - including having 'no spend days', opening bank accounts to take advantage of intro offers, and reverting to physical cash. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... A poll of 2,000 adults found 82 per cent have employed tactics to make their money work harder for them. With other methods including opening saving 'pots' with specific targets in mind (16 per cent) and auditing all their subscriptions (six per cent) - to get rid of any they don't use. Advertisement Hide Ad Advertisement Hide Ad Cashback websites (24 per cent), having multiple accounts to take advantage of different benefits (18 per cent), and organising direct debits to come out of their accounts on or close to payday (33 per cent) are also commonplace. Many also turn to tools such as spreadsheets (18 per cent), mobile banking (37 per cent), and even writing down all their spending down on a notepad (14 per cent) to keep on track. Merve Ferrero, chief strategy officer at Zopa Bank which today [Tuesday June 24] launched its new flagship bank account, Biscuit, by presenting an edible and fully functional credit card to food critic Grace Dent, said: 'As the study shows, consumers want their finances to work harder – more dough with less effort, alongside digital ease and convenience. 'But instead of ease, they're stuck juggling clunky apps and loyalty to banks that give back next to nothing. Advertisement Hide Ad Advertisement Hide Ad 'While money is tight for most of us, today there are smart moves that can make money go further.' Grace Dent takes a bite out of banking with the world's first edible card | Ben Stevens/PinPep People want their money to 'work harder' The study also found money-saving hacks leave those polled feeling enthusiastic (22 per cent), happy (21 per cent), and comfortable (20 per cent) But while the vast majority have adopted approaches to make their money do more for them, many are reluctant to change their ways. It emerged 41 per cent have been with their bank for more than 21 years - and 21 per cent have never considered changing. Advertisement Hide Ad Advertisement Hide Ad This is despite just 19 per cent believing they get good value from their account providers. However, the research carried out through OnePoll found 42 per cent would weigh up their options if they were offered a better rate on their savings, while a joining reward would turn the heads of 35 per cent. As with cashback offers, for at least 31 per cent. Merve Ferrero of Zopa Bank, which aims to offer a simplified customer experience along with appealing rates through its Biscuit account, added: 'Cashback on monthly bills and competitive interest on our hard-earned savings can add value at every bite – making life just a little easier. 'As consumers, we want to get the value that we deserve, with less effort."
