If I used Monzo via Curve abroad, how do I get charged? I understand Curve adds 1% to the exchange rate that they provide. I’m assuming then I would have to use Monzo directly without Curve to not incur any additional charges. Is this correct?
That’s correct. Monzo pass on the MasterCard rate directly
Use Monzo direct if you want to avoid charges at POS.
Although… you’ve got me thinking… if you used your Monzo card to withdraw £200 cash from at ATM this would be free under the new terms then any further withdrawals (above the free allowance) would be charged at 3%.
However, if you used Curve after you’ve used your free £200 on your Monzo card, you would only be charged 1% for any further cash withdrawals as I believe they don’t charge ATM fees. ** UPDATE: I’ve just read their FAQs and you are charged a £2 flat fee and 1% therefore it would only work out cheaper than Monzo for cash withdrawals over £100. **
You could potentially save 2% on cash withdrawals over the initial £200 if I’m right… I may be wrong though.
Or you can change the card currency to Euro in the Curve app for the duration of your stay. But then if somone bills your curve card in GBP during that time (e.g. any online orders, continuous payment authority, or similar) that charge will incur the 1% charge, so best to use the native card.
The cheapest method of spending abroad, including cash withdrawals is using the Halifax Clarity card. All foreign transactions are free with the MasterCard rate being passed on directly. The only caveat is that for cash withdrawals you are charged interest from the point the money is taken out, so no 56 day interest free period. Use this card for all cash withdrawals, then just make a payment from Monzo to Halifax Clarity. Job done!
I wouldn’t really recommend withdrawing cash on a credit card whether or not you pay it off straight away.
If you withdraw cash on your credit card, that’s recorded on your credit record. If another lender saw that, they may see it is a danger sign.
This is far from a precise science, but some wise people seem to suggest that it’s sort of OK if you do it abroad and sparingly. I know it didn’t hurt my mortgage application that I had done so a few times in the past. But that’s just one data point which doesn’t really prove anything.