Thread: PayPal

Originally Posted by solmanic

Good idea, but you don't want to do it too often. Banks can get a bit funny if you are after a loan and they find that you have had and cancelled many credit cards. Also, you need to make sure the entire account is properly cancelled when you cut up the card. I have had one previous Visa account that continued after I closed it for about three years because the teller didn't finalise the account correctly. That available credit could stuff you up again if you are after a loan down the track.

My parents do a similar thing. They have an OS account for travelling and transfer money into that account when they need it. They are difficult to setup though and require an OS address and a trip (excuse) to set it up. Its also an easier way to manage the money etc.

Originally Posted by solmanic

We just use a Wizard Clear Advantage Mastercard - with NO foreign currency conversion fees and tiny, tiny cash advance fees. We have only the minimum credit limit on the card and just pay it into credit then use it as a debit card.

Rather than keep cancelling cards when you get back, it might pay to just reduce the credit limit back to $1000 or something if you're worried about fraud after the holiday is over.

The other thing that you can also do if its a generally dormant account, is some banks will also give instant SMS notification if there is any money moved in/out of the account.