More Options in the Pursuit of Avoiding the Foreign Currency Fee

I've got my USAA MasterCard - Back when life was simple, that's all I thought I'd ever need.

Last week I was happy to brag that I found a new Credit Card that not only did not charge foreign currency transaction fees, but also gave you 2% cash back.

Well there's at least a third credit card that doesn't charge the fees. It's an HSBC Premier World MasterCard. The bad news- I've hear horror stories about HSBC and I don't see any other benefits in owning the card.

But I am on a crusade against this fee, and I'm really looking for a card with no hassles that allows me to buy things in Poland, the same way I buy them in the U.S. - without being penalized for it.

And by the way - AAA used to offer a Visa with no foreign currency transaction fees, but apparently starting 1 June 2009, they are going to start 2%. The search continues...

UPDATE: Apparently you have to maintain a $100,000 balance with HSBC to keep the premier status. Pass on this card after all - it's a dog.

Wonderful Warranties

I've been posting a lot about warranties lately, and I started making a mental list of the things that I've had serviced (or even replaced) under the manufacturer's warranty. The list started getting long.

These are some of my most recent warranty experiences:

-Kind of expensive surge protector - Mailed it in to get replaced

-Bose Earphones - Mailed in to get replaced

-iPod Touch - Took to the local Apple Serwis Shop where it was deemed to need replacement

-Wireless Keyboard - replaced free of charge by the store

-Memory Stick - replaced free of charge by the manufacturer

-Western Digital Hard Drive (2 times) - Replaced no questions asked by the Manufacturer

-Dell Computer - Had it serviced here in Poland - under warranty - no questions asked.

-Christmas gifts - One replaced by the website that sold it (no questions asked) and one that was a little more painful - but they still replaced it.

-Cast Iron Frying Pan - Bought 18 months ago and it cracked. The manufacturer sent a new one with no questions asked.

All-in-all we've had excellent luck lately with getting things serviced under warranty. Almost zero complaints. Now it might help when I'm contacting these places I explain that I'm stationed overseas and that I need assistance from afar, but whatever - I have a lot more faith that I'm getting my money's worth for the things I buy.

Of course the question becomes - what happens when the new/fixed items break again... I guess I'll end up doing exactly what the manufacturers hope that I do - buy new ones...

Capital One Kind of Sucks

This has me over the edge -

Not too long ago I wrote about my experiences with Capital One here and here.

In January I asked for a higher credit limit on my newly acquired card because my initial limit is painfully low. I was denied a second time for an increase and this is the text of the letter they sent me explaining why:

"Thank you for your recent request to increase your credit limit. We regret that we cannot approve the requested change. The reason(s) for our decision are as follows:

Insufficient length of Capital One relationship

The profitability of your account at your current purchase rate

Your Capital One account is too new "

The first and last bullet are the same thing essentially - I haven't been a customer long enough. I have been a customer for six months though - and faithfully paid my bill in full every time, but I could almost concede that point.

But to deny me because of profitability of my account at my current purchase rate!?! What does that mean?

These are the only things that I can even guess:

1. I charge (modestly lately) on my account and pay it off every month. I never carry a balance.

2. I did request Capital One's "Military Rate" which allows me a substantially lower interest rate and waives several fees - but I never take advantage because I pay it off every month. Even their military rate is higher than the regular interest rate that USAA gives me so if I ever need to carry a balance - it won't be on this card.

3. Because I use it overseas, and Capital One is the only card issuer that doesn't charge a foreign transaction fee, they feel like I'm taking advantage of them and don't want to give me the chance to spend more of their money.

Regardless of the reason - this is ridiculous. I seriously considered canceling the card, but instead, I've decided to maximize the damage I can do.

Since they give me back 2% on gas and grocery purchases and they don't charge that foreign currency transaction fee, I will use this card to purchase only gas and groceries - and only overseas. I will continue to pay it off every month and I will cash out on the cash rewards as soon as humanly possible. Possibly monthly with the way we go through gas and groceries.

The downside is that charging near the top of your spending limit (and in this case that is pretty easy to do) is actually bad for your credit score. But I'm not planning on making any major purchases in the next few months so I think I'll be okay. With the current exchange rate against the zloty - their meager exchange rate is probably enough for just our gas and groceries.

I think I'll be much happier with sticking it to Capital One (vice jsut cancelling the card) until they up my limit. I say beat 'em at their own game.

And of course the story is not over. I've sent a letter to Capital One under the Fair Credit Reporting Act, asking them to clarify the reasons for denial. I've specifically asked if the account is not profitable because I don't carry a balance or because of the low interest rate. I'll post any updates as I get them.

Octane Rating

Have you ever found yourself wondering "What's up with the octane ratings here?"

When I first got here, I really didn't know which gas to buy. The Shell station next to my house has unleaded with 91 and 95 octane. 91 octane for unleaded seems a lot higher than gas in the States. So does that mean regular gas here has a a higher octane rating than premium gas in the US?

No.

If you’re interested in the science check out the Wikipedia article.

Here’s the Reader’s Digest version: There are two methods to calculate Octane rating in gasoline: Motor Octane Number (MON) and Research Octane Number (RON).

What’s more important than what they are, is where they are used. In the states, the number on the pump is the average of these two ratings. Here in Poland (and much of the rest of the world) they just use the RON (or the larger) number.

Why do you care? If your car is American, check out the owner’s manual. It will tell you the minimum octane rating (most likely the average of RON and MON). For example my '07 Dodge Grand Caravan lists the rating at 87 Octane. Great - If I was in the States. For some reason the Dodge's owner's manual does not list the international RON rating. Probably because it would confuse people.

I dug through the Owner's manuals on my motorcycles and found a much clearer answer:

My '09 Harley takes the 95 Octane gas here; the equivalent to 91 octane on a Stateside pump.
My '91 Suzuki takes 91 Octane here; the equivalent of 87 Octane Stateside.

So that's how we roll now. For the Dodge and the Suzuki we get the 91 Octane, but not lower. Getting a lower octane is not so much a problem here in Poland, but be aware when you go to Germany because they do have the 90 RON there. That's probably not what you want to put in your car.

For the Harley - She takes premium - which as long as I get the 95 RON, I'm good.

Most mechanics will agree that unless your owner's manual specifically says otherwise - there is usually no need to put in more expensive gas than necessary. Certainly not on a regular basis.

Confused? Ask the attendant - Even if it's not marked - they can tell you what the octane rating is. It does help to be able to count to ten in Polish...

So the next time you're at the pump - make sure you're putting in only what you need. It could save you several bucks each time you go to the pump. Over a year (depending on the exchange rate) that could add up to some serious zlotys...

PayPal - The Forgotten Friend

I've found a renewed interest in PayPal lately.


PayPal, for those not familiar, is a service that allows to you send and receive money to just about anyone. Anyone with an email address and a bank account. Its kind of like Western Union for the 21st century.


Most people who have an account, use it for eBay. By design, eBay makes it easy to use Paypal and hard to use anything else.

Recently I paid for shipping my new motorcycle with an international company. They took my credit card, but charged me over $40 for the privilege of doing so. They said I could do a bank transfer, but that would mean bank fees. Turns out - they took PayPal. I could have sent the cash from my checking account for free and saved the $40. Ironically - I ended up paying their credit card fees with PayPal.

Lately I've also used it to send money for Girl Scout Cookies, paid a couple of bills and even entered a Scrapbooking Challenge (okay, that last one was for my wife).


The only reason that I even mention them is that I recently found out more about the other end of what they do (Collecting money rather than giving it). If you have a small business, their credit card rates are pretty good, and with one major exception - they are practically hassle-free.

So if you don't have an account - you can get one here.

Early Filers Beware

Ahh Tax season - My favorite time of the year.

I'm pretty sure you're legally supposed to have your 2008 tax documents by now - or at the least, most of the people providing them should be putting them in the mail by now. No mater how many documents you have already, it's never too early to get started.

And it appears that its never too early to get started making mistakes either.

My home-town newspaper recently published an article on tax rebate errors and it appears that 15% of tax filers are already messing up their tax returns by incorrectly filling out the section about the amount of the tax stimulus rebate that many of us got last year.

Rule of thumb - If you got stimulus money in 2008 - you probably don't qualify for an additional stimulus money. Sorry - consider yourself fully stimulated.

The good news is - it looks like if you did claim the refund accidentally- it only delays your total refund by a week. That could be worse...

Under Construction

To my loyal followers (all six of you - and you know who you are) -

You might have noticed that this site is undergoing a little bit of construction.

I'm trying to make it a bit easier on the eyes and more accessible.

Suggestions in the form of comments are always welcome, or you can email comments@thriftyexpat.com.

I hope to settle on a theme and a coherent flow to the site very soon. I'm also hopeful that we'll see a more professional look to the site in the coming weeks.

Thanks
Dylan