Find our best exchange rate for Dirhams

Travel credit cards - i.e. the ones with no foreign transaction fees - offer two key advantages over travel money:

• Great exchange rates - when you spend on a travel credit card you get the American Express, Mastercard or Visa exchange rate, which is about the best you can find as a regular consumer

• Purchase protection – for purchases costing more than £100 and up to £30,000, you're covered by Section 75 of the Consumer Credit Act, meaning if something goes wrong you can make a claim with your card provider should the vendor fail to pay up

However, not everywhere accepts travel credit cards and using them at a cash machine abroad can come with hefty fees. It can also be easier to overspend on a credit card, leaving you with debts on which interest is charged.

Currency cards and travel bank accounts let you spend overseas without being charged a foreign transaction fee. Their key strengths are:

• Great exchange rates – the best card providers will pass on the Amex, Mastercard or Visa rate to you without adding extra charges

• No charges for some ATM withdrawals overseas - if you need extra cash on holiday, some providers let you make a number of withdrawals per month or withdraw up to a certain amount without being charged. Watch out for local ATM fees though, as these might still apply 

The downsides include that there can be limits on how much you can withdraw abroad using a travel money card, and that they're not accepted quite as widely as cash. Some travel current accounts also come with fees.

Prepaid travel cards can be loaded with currency and used abroad without paying foreign exchange fees. You can load a prepaid card with a specific foreign currency or a variety of different currencies, depending on your travel plans. The key advantages are:

• Low or no fees to use abroad – prepaid travel card providers can charge far less than traditional banks for overseas usage

• Safer than carrying cash - you can cancel or freeze the card if it's lost or stolen, protecting your balance

However, you’ll need to watch out for general usage fees, which often apply when you load the card with cash and may also be charged monthly.