Using US credit card and not having a UK bank

I remember reading that Visa or Mastercard make out better on the exchange rate than an individual. So it's seems to me that my SSA benefits would go further if I use my Visa for all expenditures in the UK (including some cash advances) and keep my present direct deposit to my US bank. I can manage the account online,so being in the UK (once I've moved) wouldn't matter.

Anyone doing this?

This would only work if your c/card gives you a favourable rate when purchasing items, and doesn't charge a conversion fee every time you use it. I don't know anything about getting cash on a c/card having never needed to do that.

Call your credit card company and ask them for the "foreign transaction fee" and the "spread" - the percentage above the mid-market exchange rate that all currency conversions are charged.

Then compare that to the same figures for personal online transfer services.

Then you will know which is cheaper.

SS deposits directly into a UK bank account are at the best possible Fx rate on the day, with no spread, and no fees. By contrast, every time you use almost ANY US credit card (or debit card), you attract a fee - typically 3% - ad the Fx rate is not that great. Cash withdrawals are even more costly; I wouldn't even do that in the US with a credit card.

personally, I would never use a US card for a purchase here in the UK. Also, remember that your US SS is taxable in the UK (90% of it, not the full amount), not in the US under the tax treaty. Having it deposited in a UK account means you know exactly what to report on your UK self assessment tax return.

I would also check that the UK bank wouldn't charge you for using the ATM.  Sounds like just the kind of thing they would do.

We only use our US credit cards over here - Capital One has no foreign transaction fees and a great exchange rate. Plus we get good rewards. We're not here permanently so we haven't bothered trying to build up UK credit.

We only use our US credit cards over here - Capital One has no foreign transaction fees and a great exchange rate. Plus we get good rewards. We're not here permanently so we haven't bothered trying to build up UK credit.

That's what I'm doing as well.  I use my CapOne debit card to take money out of an ATM, and my credit card for purchases.  Having checked the exchange rates several times now I'm convinced this is a really cost effective way to go - at least for now.  As I'm here for the long haul, I don't know if I'll keep it this way, but until I've been here long enough to get a UK credit card it makes sense.  I don't have SS yet, but I am getting a US military retirement each month - that's being deposited into my CapOne savings for the time being.