@longtimelurker wrote:
@xenon3030 wrote:My main concern is the used exchange rate while using credit cards outside US. I assume that at the checkout, USD gets exchanged to GBP using the exchange rate in the UK which should be worse than purchasing GBP in the US. Therefore, it might be better to purchase GBP bank notes here and use cash while doing purchases in the UK but I might be wrong. Is there a recommendation to minimize penalty on exchange rate, while using CC outside?
So long as you avoid dynamic currency conversion (so you will be charged in GBP) the Visa/MC conversion rates are often better than you would get as an individual exchanging money. And getting rewards makes it (IMO) much better than using cash, quite apart from the additional safety
+1. Always always always pay in GBP and do not let merchants give you the "courtesy" of charging you in USD. That will happen especially in tourist areas so keep an eye out for it.
@K-in-Boston wrote:
@longtimelurker wrote:
@xenon3030 wrote:My main concern is the used exchange rate while using credit cards outside US. I assume that at the checkout, USD gets exchanged to GBP using the exchange rate in the UK which should be worse than purchasing GBP in the US. Therefore, it might be better to purchase GBP bank notes here and use cash while doing purchases in the UK but I might be wrong. Is there a recommendation to minimize penalty on exchange rate, while using CC outside?
So long as you avoid dynamic currency conversion (so you will be charged in GBP) the Visa/MC conversion rates are often better than you would get as an individual exchanging money. And getting rewards makes it (IMO) much better than using cash, quite apart from the additional safety
+1. Always always always pay in GBP and do not let merchants give you the "courtesy" of charging you in USD. That will happen especially in tourist areas so keep an eye out for it.
This seems like a very noteworthy point, thank you! When I lived in Greece, I did almost everything via cash.
I actually just learned last night that Amex issues several cards in the UK. As we get established there, I will likely look to "convert" what I can. I know that it's starting over a bit with the UK score vs here.
Then, should carry the Visa/MC cards in the international travels with dynamic currency conversions and no international transaction fees. Do all Visa/MC cards have this dynamic currency conversion?
From rewards point of view, I think no other countries can compete to the US credit card reward systems (I might be wrong, but I never heard the phrase of "cashback" in some countries that I visited before 
).
Fico8: EX~EQ~TU~810 (12 month goal~840).Good to know that the Amex network doesn't work with DCC.
Yes, all V/MC cards would be compatible. The conversion happens on the point of sale or credit card terminal. Say you buy a souvenir for 100€ and today's exchange rate is $1.30 to 1,00€. You use a card with no FTF and if they charged you 100€ you would see $130 on your statement. However, if they use DCC they can set it to whatever they want. They give you the "courtesy" of charging you in USD instead of Euro and may have their exchange set to $1.40 to 1,00€ so they would just charge you $140 and pocket the extra $5.
Got it.
For my next international travels, I choose cards with no FTF, no DCC at the checkout.
For a short stay in the UK, definitely it is good to use the US cards, due to better reward programs. For a long stay (>1y), assuming the person also would receive salary in a GBP bank account in the UK, not sure whether there would be a fee to pay the US credit cards from a UK bank account. Any suggestion?
@K-in-Boston Great description! Avoid at all costs!
@xenon3030 I completely agree! We are credit addicts over here 
.
@longtimelurker This is great stuff! I wouldn't be in a hurry to convert to UK Amex, we will still maintain a virtual mailbox in the states. Plus getting a UK credit score is going to be trickyc while it's still Experian, Equifax, and Transunion, it's basically a new profile for us there. I will be getting paid in GBP and have contemplated that as well. I think I will try to spilt some between a US and UK bank, we'll see how my employer will feel! But yes, Wise is looking very appealing.
I suspect that declining to pay in US dollars but rather in GBP should be easy enough to avoid DCC, sneaky trick though!