The best exchange rate for Danish Krone is always obtained by using a card for payment since it is by far the most economical option. And for carrying some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to maximize money savings would be to always pay with a card (as we will see later, in 2024, Wise card offers the best exchange rates and lowest costs in the market) and only withdraw the amount of cash we need from an ATM.
Certainly, this technique to save the most money possible on your vacations might surprise you. After all, if you go to any currency exchange or bank, you will see how they advertise loudly that “there are no commissions,” and therefore one could simply think that the logical thing would be to exchange Krone at the prevailing exchange rate and that’s it, right? Well, not quite! Everything has a cost, even paying with a card has a cost, even if they don’t tell you or you don’t see it at first glance.
I’ll tell you a secret: we created this website as a group of friends who have worked for several years in currency exchange offices, and frankly, changing cash is the worst option by far. Moreover, to give you an idea of the scale of this bad alternative, you should know that most currency exchange operators or banking employees have discounts for exchanging currencies compared to the exchange rates offered to customers. But even with those discounts, we never exchange cash. At most, depending on the trip, we only take a small amount for certain expenses or just in case it’s necessary to enter the country.
So, it’s clear: always pay with a card and only withdraw the necessary cash in Krone from an ATM. Now let’s see how to pay the least possible cost in both cases:
What is the best card for paying abroad?
Based on the study we conducted of all the cards available in the market for this year 2024, for making payments in any foreign country, travel cards have lower costs than traditional bank cards. Among the travel cards, Wise provides the lowest costs.
These results are valid not only in terms of costs for payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be on average about 4 times more expensive, and bank cards about 10 times more expensive); but also in costs for withdrawing cash in foreign currencies from ATMs outside your country (Wise would again have the lowest fees, other travel cards would be about 4 times more expensive on average, and bank cards about 20 times more expensive).
Similarly, if you want to know the exact differences in costs and functionalities among the different cards you can find on the market in 2024, don’t miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Do we need to bring our home country cards abroad?
As we mentioned earlier, it’s preferable to use the Wise card instead of a conventional bank card or other travel cards, as you will save a significant amount of money when paying in foreign stores and when withdrawing money from international ATMs with the lowest possible fees.
In this regard, it wouldn’t be necessary to bring any other card. However, keep in mind that if you plan to make payments like renting a car, you will need a credit card since most car rental companies will hold a deposit and only accept credit cards.
If, on the other hand, you won’t be making these kinds of transactions, it’s recommended to leave your main bank cards with higher balances at home and only for security reasons, it would be advisable to carry an extra debit card with a small amount of funds in case of emergencies (imagine your other card gets damaged or stolen, and you also lose your phone, leaving you with no means of payment).
Keep in mind that in case of theft, there’s a risk of fraudulent operations with your cards up to their respective limits. However, with the Wise card we recommend, your balance can never go negative, so only the deposited funds can be spent.
Moreover, you can instantly block your Wise card from your mobile, while with your bank cards, you might have to call your bank to cancel them, running the risk of them not providing service at that time due to holidays or being outside customer service hours.
For all these reasons, when traveling, it’s much better to carry a debit card like the Wise card with the amount of money you will need. If you need more, you can always top it up instantly through the mobile app, and if you need to block it due to loss or theft, you can do it instantly through the app as well. This way, you’ll have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card offers numerous features through the mobile phone, so it’s important to make sure your phone’s battery is always well charged. Keep in mind that many countries have different plug types, so it would be a good idea to get a universal plug adapter for traveling, as it will be useful for any trips you plan to take in the future. In this link, we show you a very affordable universal plug adapter, as well as other ideal and necessary products for traveling.
Lastly, it’s important to know that if you’re planning to bring your credit card to pay for deposits in operations like car rentals, it’s recommended to notify your bank before traveling abroad and inform them of the limits you’ll need. Remember that all cards have daily, weekly, and monthly limits, and when traveling, you’re likely to spend more than usual. So, if you have relatively low limits and are not aware of it, you could reach your limit unknowingly and find yourself in a serious predicament.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance abroad, you can still obtain money in a very simple way:
- If you have a bank card, you should contact a family member or friend who is a customer of the same bank, and ask them to transfer money to your account. Transfers between accounts of the same bank are instant, so once the transfer is completed, your card can use the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, which is also done instantly.
- If you have a prepaid card like Wise, you can recharge it through the App (or someone can do it for you), and you’ll receive the money instantly.
What do I do if all my cards are stolen abroad?
If all your cards are stolen abroad, these would be your alternatives to get by:
- Use cash you’ve withdrawn from an ATM: You can pay with the cash in foreign currency in case you have made a withdrawal from an international ATM.
- Exchange your home currency for cash: It’s always advisable to carry some of your home currency in cash in case of emergencies, as you can exchange it for Krone at exchange establishments if needed.
- Pay with your mobile: If your mobile phone has NFC technology and your bank offers mobile payment services, you can link your mobile phone with your card, and even if it’s canceled or blocked due to theft, you can continue to pay with your mobile without any problem.
- Have someone in your home country pay for what you need: If you simply need to purchase a plane, train, or boat ticket, anyone you know in your home country can pay for it online and send you the mobile boarding pass (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many agencies offering this service. Anyone you know could make a transfer from your country, and you’d receive the money abroad.
- Sell your jewelry at a gold-buying store: In most major cities worldwide, there are numerous gold-buying establishments where they’ll buy any gold jewelry from you without any problem.
- Sell your most valuable assets at a second-hand shop: The most sought-after items and easiest to sell would be technological products like phones or laptops, as well as quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow nationals who can trust you. If you need a small amount, vending machine areas are perfect for asking, as everyone gets change from them, and it’s very easy for people to give you something.
- Visit your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where to find the best cash exchange rate for Danish Krone?
As mentioned earlier, the cheapest way to obtain cash in Danish Krone is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash at a currency exchange or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good rate. A rate with a margin between 5% – 10% would be acceptable; between 10% – 15% would be a poor rate, and beyond 15% would be considered usury.
You can easily find the official exchange rate for the Danish Krone to your currency on Google. By subtracting the rate they offer you from the official rate and dividing the difference by the official rate, you’ll get the percentage margin they would be applying.
Usually, highly trafficked areas in tourist locations are the worst places to exchange currency, as they apply higher margins on the exchange rates. Therefore, it’s best to search for a good exchange establishment on the Internet before going to the first one you see.
However, if you were to exchange a small amount of money, it wouldn’t matter much where you change it in case of need and urgency, as it would involve accepting a small extra cost in the worst-case scenario.
How much cash is enough for traveling?
Exchanging cash has only two functions:
- It serves as an emergency fund in case your card and phone are stolen, so at least you can get by: have something to eat, make a call, travel to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves in case you need to make cash payments: at some street stores, some vending machines, and for paying certain services such as laundromats, telephone booths, carts that require coins, etc.
Thus, depending on the number of days you’ll be traveling and the amount you plan to spend in cash, you can calculate more or less what you’ll need, which, in any case, shouldn’t be a large amount.
Is it possible to know if the exchange rate for Danish Krone will be better or worse in the future?
Official currency exchange rates for all currencies function like any other financial market, just like the stock market. There are analysts and financial gurus who make predictions, but just like predictions about stock prices, there’s no evidence that anyone can consistently predict future prices with certainty.
Generally, foreign exchange rates tend to be quite stable, and over the course of a month, they don’t fluctuate much more than 5%, unless there’s an unexpected economic or political event, such as an unforeseen victory of an opposition party with a groundbreaking economic program.