The Aussie Dollar, What to do ?

[Franrose]

thanks for this tip Franrose - that's a fantastic deal for a credit card! I have a debit card that doesn't charge any fees but I have not seen a credit card before. The interest rate is pretty high but if you are the type who pays it off - then no fees! When you preload it with cash so you can use it like a debit card - I am thinking that is just with AUD isn't it? so one is still at the mercy of the prevailing exchange rate on use - or can you prepurchase foreign exchange?

I am using the Travelex cash passport and feel happy. 1% fee, locking in a great exchange rate and as a VISA card is widely accepted.

Yeah, from what I have read, you do get the exchange rate at time of use. Also I checked it out on product review and even though the articles I linked suggested loading it up with $$, it seems like in reality the credit card company don't want you to do that (because you're being too sensible!) and may freeze the card temporarily (citing fraud worries) or decline your application of that's how they think you'll use it!

Bummer. Which debit card do you have Sugarglider? I am wondering whether a combo of two cards would be good, a travel card for "credit card" type use, and perhaps a card like the one you have for cash advances.

 

[HappyFingers]

we have the 28 degrees card and it works fine

we dont preload it

we have the money that we intend spending on it in a sperate interest earning account, when we use the card we just cover it the next day or whenever it shows up on the account with the money we have put aside

its simple
with the internet banking you just have a bill payment account set up so when i want to pay it all i do is select 28degrees biller and transfer the money across

 

[Anne_Aus]

There is a st George account that I was advised to open for my trip it allows free withdrawals from Bank of USA ATMS. It is a normal account so has Australian dollars.

I can't remember the name of it off hand but I will go through my paper work later tonight and get the finer details on it

 

[shushh]

Yeah, from what I have read, you do get the exchange rate at time of use. Also I checked it out on product review and even though the articles I linked suggested loading it up with $$, it seems like in reality the credit card company don't want you to do that (because you're being too sensible!) and may freeze the card temporarily (citing fraud worries) or decline your application of that's how they think you'll use it!

Bummer. Which debit card do you have Sugarglider? I am wondering whether a combo of two cards would be good, a travel card for "credit card" type use, and perhaps a card like the one you have for cash advances.

We have preloaded ours before with no problems although I tend to use it now as just a credit card. It is good when the dollar is tipped to rise hence the combination with a travel card. We have one preloaded with a rate that we're happy with and if the dollar is set to rise, we go with the 28degrees card, it set to dive, we preload more. But as with everything in life, nothing is certain! If we can all predict currency fluctuations, we'd be rich!

LIke Happyfingers, we just transfer more across from our usual account via BPay if we think we're going to go over our limit!

 

[marvel]

that is exactly what I do. Have a card already loaded with US dollars, and then use the 28 degrees card if the rate is super high when travelling. the added bonus is that any money left on my travel card is for the next trip

 

[Kalice]

We have the 28 degree card too. It was recommended in 2010 by choice, or one of the financial newletters we receive.

 

[Sugarglider]

Yeah, from what I have read, you do get the exchange rate at time of use. Also I checked it out on product review and even though the articles I linked suggested loading it up with $$, it seems like in reality the credit card company don't want you to do that (because you're being too sensible!) and may freeze the card temporarily (citing fraud worries) or decline your application of that's how they think you'll use it!

Bummer. Which debit card do you have Sugarglider? I am wondering whether a combo of two cards would be good, a travel card for "credit card" type use, and perhaps a card like the one you have for cash advances.

Thanks for that advice Franrose and Happyfingers - nice to know.
The NAB VISA debit card is completely fee free and I have it linked to my ordinary bank account. That link to Australian Business Traveller mentioned that it was the only fee free card available. Technically the cash passport is also a debit card so I have all the cash ready to go up front and will only use the credit card for the car hire and emergency bargain shopping!

 

[HappyFingers]

ok so im not spinning out to much as i guess its good that the dollar drops now with less than a month until we go

that means chances are it will spike back up just in time for september

usa lost its aaa rating today so im curious to see how that will effect things

and just remember you heard this weeks ago from the guy who heard it from another guy who heard it from someone else

Today Koche on sunrise said that Moody's has put USA on notice that it is considering revoking their AAA credit rating due to the concern over the debt ceiling etc

Fingers Crossed

 

[shushh]

Thanks for that advice Franrose and Happyfingers - nice to know.
The NAB VISA debit card is completely fee free and I have it linked to my ordinary bank account. That link to Australian Business Traveller mentioned that it was the only fee free card available. Technically the cash passport is also a debit card so I have all the cash ready to go up front and will only use the credit card for the car hire and emergency bargain shopping!

Sugarglider, check if the card still has a monthly fee when you have less than $5000 in it. We had the NAB visa debit card, and we got tired of moving money in and out every month just to avoid the monthly fee.

 

[toontownnutter]

ok so im not spinning out to much as i guess its good that the dollar drops now with less than a month until we go

that means chances are it will spike back up just in time for september

usa lost its aaa rating today so im curious to see how that will effect things

and just remember you heard this weeks ago from the guy who heard it from another guy who heard it from someone else



Fingers Crossed

If the USA start printing money like they're talking about their dollar will go straight down the toilet big time.

I booked my dis holiday yesterday with free dining at $1.04. Anything above parity is a bonus.

 

[jessiegirl84]

we leave in 4 months and im a bit worried, as the dollar today has dropped to under parity.
I haven't got my spendings converted yet, but we have booked everything else which is good I guess. I hope it picks up in the next few months, but I am a little doubtful at the moment

 

[Mum from oz]

I'm a bit worried too. When we booked our flights last Monday it was $1.10! I hope it goes back up. I'd like it to at least stay at parity. I'd be happy with that.

 

[Anne_Aus]

I am also happy if its at parity, it is back above.
I have been watching the news pretty closely, I think it will be a matter of waiting it out and watching until the countries decide what they are going to do.

 

[kylieh]

At least it's back over parity now!

Just think a year ago we would be like, come on $$$, get above 95c, will it make it to parity?

http://www.xe.com/currencycharts/?from=AUD&to=USD&view=1Y

 

[Sugarglider]

Sugarglider, check if the card still has a monthly fee when you have less than $5000 in it. We had the NAB visa debit card, and we got tired of moving money in and out every month just to avoid the monthly fee.

Hi Shushh - i have all of my banking with the NAB and pay one annual fee so I am not paying any individual fees on any accounts. So I can have as many credit and debit cards, use any ATMs and loans etc all wrapped up in one package. I admit I have given almost all of my banking to one provider but in return I am not copping additional fees on my cards. I should say thanks for the heads up on checking for fees - cause fees can be different for different people. I suppose the lesson is to ask your bank what they can do for you.

The dollar movement is anyone's guess at the moment. If the Reserve drops the interest cash rate, and/or Japan buys USD again, the AUD should drop but if the USA goes for QEIII that could push it up. I suppose the best thing to do is to keep buying tranches when the AUD is high