Pre-Paid Credit Cards 'Could Save Holidaymakers Cash'

Holidaymakers have been advised to take advantage of credit cards that can be topped up with foreign currency at times when the pound is doing well.

According to a well known comparison website, by topping up a card on a day when the pound is exchanging favourably - even if it is a few months before the traveller departs - considerable savings can be made.

A blog post on a financial website noted that the sterling dropped to a three month low recently after the Bank of England governor was quoted stating the pound's weakness is aiding in the recovery of the UK economy.

A travel money expert at the web comparison firm advised Brits to shop around for their currency in such tough times to ensure that they get the best deal available.

He noted that while many high street retailers and mainstream banks operate nought per cent commission deals they often offer consumers a less competitive rate of interest than they can get elsewhere.

The money expert advocated using an online service to pre-order cash at a good rate of exchange and then picking up the currency at the airport. He explained that services like this have "very different rates" to other services operating at travel hubs.

"Another thought is pre-paid cards," he advised. "They offer very competitive exchange rates on pre-paid cards. It's an alternative source."

He said that with the Sterling unlikely to make any significant gains on the Euro in the coming months being prudent when ordering cash was even more important than normal.

The money advisor concluded: "It's a bit like the property market – it's a bit of an unknown at the moment. I can't see it getting much worse at the moment, but who knows?"

If you would like to know more about prepaid cards why not ask AnswerBank Business and Finance.