Posted by Mike Smith :: September 6, 2007 @ 8:13 am

In part 1 of this post, I discussed some money-related tips for planning international travel. This second installment has some suggestions for what to do once you get there.

Use Your ATM to Get Money
There are many options for getting money in a foreign currency. My preferred method is using an ATM machine. ATM machines tend to give very competitive exchange rates. They typically use the average rate for the past few days or weeks, so you won’t be subject to daily fluctuations. Be aware of your bank’s policies on international withdrawals. Sometimes the fees for such transactions can outweigh the savings you’ll get from a good exchange rate.

If You Exchange Money, Use a Bank
It’s always a good idea to have some cash on hand when you travel. Though you may not get quite as good an exchange rate as through an ATM, you can usually get a decent rate at a local bank. Avoid exchanging money at airports and train stations, as these tend to have the worst rates. You may need to exchange a small amount of money right when you arrive, just to have some local currency for taxis, snacks, etc, but save your bulk exchanges until you’ve found a stand-alone bank.

Don’t Bother with Travelers Checks
In the few places that travelers checks are accepted, you’ll be charged a fee to cash them and typically get a poor exchange rate. Adding in the cost that your bank charged you to purchase them, travelers checks are one of the most expensive ways to get money in a foreign country. They are better off left at home.

Don’t Re-Exchange Money Before Returning Home
Unless you have a large amount of foreign currency left over, don’t exchange it back to dollars before you leave. It’s not worth paying the commission again on a small sum of money, and it's nice to have a little bit of foreign currency available for your next visit. If you expect to need some cash when you arrive home, you might want to set aside a small amount of your travel money to keep in your own native currency.

Watch for Scams in Touristy Areas
While guide books are great for seeing the sights, they generally don’t tell you about the latest scams that tourists are subjected to in your destination country. Upon arrival, ask at your hotel if there are any popular tourist scams that you need to be aware of. You can also find a lot of useful information, as well as travel advisories, at the US Department of State’s website.

While these tips certainly don’t cover everything you’ll need to know for a successful trip, I hope that they do make your travels more pleasurable. These suggestions, along with the other topics discussed on the Lending Club blog, should help you to be particularly money conscious during your trip. If you need help paying for that trip of a lifetime, remember that a P2P loan from Lending Club is a much more affordable financing option than charging your way across the country or around the world.