You've been thinking about a break for months and now you've finally got away.

You've spent all the money you exchanged, but how useful, your credit card can not only be used to pay for most things in some foreign countries, but you can also use it to withdraw money at an ATM!

Fantastic! Or is it...











According to comparison website USwitch, we're wasting a staggering £560m in unnecessary credit card fees on holiday. This includes charges for withdrawing cash at ATMs, higher interest rates for cash withdrawals and interest being charged as soon as you withdraw your money from the machine and it all seemed so easy when you were there!

Plus, for those who decide to switch or take out a new card for their holiday had better get a move on posting the application. Not only do you need to be aware of high charges, but you also need to apply sooner rather than later as some cards take at least 4 weeks to arrive.

If you're accustomed to taking out cash on your credit card from an ATM beware of the numerous hidden costs for the privilege. These costs include:

Different interest rates for withdrawals and retail purchases
You should be aware that with very few exceptions, providers charge a different interest rate to withdraw cash than they do for retail purchases, and most cards charge interest as soon as the cash is withdrawn.

Those wishing to avoid this trap should get a card that doesn't charge a loading fee.

Nick White at USwitch.com, says: "The vast majority of credit card companies charge loading fees when transactions are made or when cash is taken out abroad. This charge is often put down to covering costs, but in reality, providers are actually using it as an opportunity to bolster their profits. If you hold one of the more popular credit cards, including those from the big four banks, your transactions could prove more costly than expected."

Look carefully for hidden charges in the small print and shop around for the best deal, especially if you are only getting the card to take on holiday, as it may not be the best option.


 








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