The best exchange rate for converting Swedish Krona is achieved by always paying with a card, as it is by far the most economical option. To carry some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save as much money as possible on your travels would be to always pay with a card (as we will see later, in 2024, Wise’s card offers the best exchange rates and the lowest costs on the market) and only withdraw the amount of cash you’ll need from an ATM.
Certainly, this technique to save the most money on your vacations might surprise you, as in exchange offices or banks, you’ll often see prominent advertisements claiming “no commissions,” leading one to think that the logical approach would be to exchange Krona at the current rate and be done with it, right? Well, not quite! Everything has a cost, even paying with a card has a cost, although they may not tell you or you may not see it at first glance.
Let me share a secret: this website was created by a group of friends who have worked in currency exchange offices for several years, and frankly, changing cash is the worst option by far. Moreover, just to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or bank employees receive discounts for currency exchanges compared to the exchange rates offered to customers. But even with that, we never exchange cash. At most, depending on the trip, we carry only a small amount for certain expenses or as a precautionary measure for entry into the country.
So, it’s clear: always pay with a card and only withdraw the necessary amount of cash from an ATM. Now let’s see how to minimize costs in both cases:
Which is the best card for paying abroad?
Based on the study we conducted on all the cards available in the market for the year 2024, for payments in any foreign country, travel cards have lower costs than regular bank cards. Among travel cards, Wise provides the lowest costs.
These results are valid not only for payments at international merchants in foreign currency (Wise would offer the best conditions, with other travel cards being, on average, about 4 times more expensive, and regular bank cards being about 10 times more expensive) but also for the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again have the lowest fees, with other travel cards being about 4 times more expensive, and regular bank cards being about 20 times more expensive).
Also, if you wish to know the exact differences in costs and functionalities among the different cards available in the market in 2024, check out our comparative study at this link. As you’ll see, this extensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Do you need to bring cards from your home country abroad?
As mentioned earlier, it is preferable to use the Wise card instead of a conventional bank card or other travel cards since you’ll save a significant amount of money when making payments at foreign merchants and when withdrawing money from international ATMs, paying the lowest possible fees.
In this regard, you may not need to carry any other cards initially, but keep in mind that if you plan to make payments like renting a car, you will need a credit card, as most car rental companies will place a hold on a certain amount as a security deposit and will only accept credit cards.
If, on the other hand, you won’t be making such transactions, it’s recommended to leave your bank cards with higher balances at home and carry only one extra debit card for safety, with a small balance, in case of emergencies (imagine your other card gets damaged or stolen, and you also lose your phone, leaving you with no means to pay).
Keep in mind that in case of theft, you risk fraudulent transactions being made with your cards up to their respective limits, whereas with the Wise card we recommend, your balance can never go negative, so only the amount you’ve deposited in it can be spent.
Additionally, you can instantly block your Wise card from your mobile phone, while with your bank cards, you might have to call your bank to cancel them, risking that they might not provide service at that moment 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 Wise with the amount of money you’ll need. If you need more, you can always reload it instantly through the mobile application, and if you want to block it due to loss or theft, you can do so immediately through the app as well. This way, you’ll have full access to your money at all times, without paying commissions and minimizing the risk of theft.
As you can see, this card offers numerous functionalities through your mobile phone, so it’s important to ensure your phone’s battery is always charged. Remember that plugs may differ in many countries, so it would be a great idea to acquire a universal plug adapter for traveling, as it will be useful for any trip you take in the future. In this link, you’ll find a very affordable universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it’s important to know that if you plan to take your credit card to pay for deposits on operations like car rentals, it’s advisable to notify your bank before traveling abroad, specifying the limits you’ll need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you’ll likely spend more than usual. If you have relatively low limits without knowing it, you could reach your limit unknowingly and find yourself in a serious predicament.
What to do if my card runs out of funds abroad?
If your debit card runs out of funds while abroad, you can still obtain money in a straightforward manner:
- If you have a bank card, you should contact a family member or friend who is a customer of the same bank to make a transfer to your account. Between accounts within the same institution, the money is transferred instantly, so once the transfer is completed, your card will be able to use the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, as this type of transfer is also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or have someone do it for you) and receive the money instantly.
What to do if all my cards get stolen abroad?
If all your cards get stolen abroad, here are your alternatives to get by:
- Use cash you withdrew from the ATM: You can pay with the foreign currency cash in case you made a withdrawal from an international ATM.
- Exchange your home currency in cash: It’s always advisable to carry some cash in your home currency in case of emergencies, as you can exchange it for local currency if needed.
- Pay with your mobile phone: If your phone has NFC technology, and your bank offers mobile payment services, you can link your mobile phone with your card. Even if the physical card is cancelled or blocked due to theft, you can continue to make payments with your mobile phone without any issues.
- Have someone pay for what you need from your country: If you simply need to purchase a plane, train, or boat ticket, any contact you have in your home country could pay for it online and send you the boarding pass via mobile (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous money transfer agencies. In these places, any contact you have could make a transfer from your country, and you would receive the money abroad.
- Sell your gold jewelry at a gold-buying store: In most major cities around the world, there are numerous gold-buying establishments that will buy your gold jewelry without any problems.
- Sell your valuable items at a second-hand store: Technological products like phones or laptops, as well as high-quality clothing and watches, are the most sought-after and easiest to sell items.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, asking near vending machines is perfect, as people receive change from them, making it easy for them to give something if you ask.
- Go to your Embassy or Consulate: As a last resort, representatives of your country can provide you with assistance.
Where to find the best cash exchange for Swedish Krona?
As mentioned before, the cheapest way to obtain cash in Swedish Krona is by withdrawing money from ATMs.
In any case, if you were to exchange cash for Krona at a currency exchange office or bank, a margin of less than 5% compared to the official exchange rate would be a good rate. Between 5% – 10% margin would be an acceptable rate; between 10% – 15% would be a poor rate, and beyond 15% would be exorbitant.
You can easily find the official exchange rate for the Swedish Krona against your currency on Google. Subtracting the rate they offer you from the official rate and dividing the difference by the official rate will give you the percentage of margin they would be applying.
Usually, highly frequented areas in tourist sites are the worst places to exchange currency, as they apply higher margins on the exchange rates. Therefore, it’s best to search online in advance for a reputable currency exchange establishment instead of going to the first one you see.
In any case, if you were changing a small amount of money, it wouldn’t matter much where you exchange it in case of need and urgency, as you would only be assuming a small extra cost in the worst-case scenario.
What amount of cash is sufficient for traveling?
Exchanging cash has only two purposes:
- It serves as an emergency fund in case your card and phone are stolen so that you can at least manage essentials: buying food, making calls, traveling to the embassy if you need a duplicate passport, and reaching the airport to leave the country.
- It serves for payments in cash: at some street vendors, certain vending machines, and for paying for some services like laundromats, phone booths, shopping carts that require coins, etc.
Thus, depending on the number of days you’ll be traveling and how much you plan to spend in cash, you can roughly calculate what you’ll need, which, in any case, shouldn’t be a large sum.
Is it possible to know if the krona exchange rate will improve or worsen in the future?
Official currency exchange rates for all currencies function like any other financial market, such as the stock market. While there are analysts and financial gurus who make predictions, just like predictions about stock prices, there is no evidence that someone can reliably predict future prices with certainty.
Generally, currency exchange rates tend to be relatively stable, and over the course of a month, they don’t vary much more than 5%, unless there’s an unexpected economic or political event, such as an unforeseen victory of an opposition party with a disruptive economic program.