Do I take dollars... or get pesos in NY?
* Use an ATM upon arrival to get pesos. Use a bank-affiliated ATM rather than a stand-alone machine operated by a private company. If it makes you feel more comfortable, get some pesos before you leave.
How and where do I exchange money?
* Just use your ATM - this will get you the best exchange rate, even with the fees charged by your bank and the local ATM.
what is current exchange rate..
* You can see current exchange rates here: http://www.xe.com/
This will be the official exchange rate. The rate that you actually get depends on many factors. If you exchange cash for cash, you will be charged a fee and/or get a less-favorable exchange rate. That exchange rate can vary greatly depending on where you do your exchange. If you get pesos from an ATM, you will get the interbank exchange rate (very close to what you see on xe.com), with any transaction fees added on - either by your own bank or the ATM that you use.
I am reading it is better to use pesos?
* Generally yes. You can use USD in many places in Cancun and the Mayan Riviera, but you will pay for the privilege. Vendors and merchants pick the exchange rate and it will never be favorable to you. The official exchange rate is about 1USD = 13 pesos, but vendors will often use 1USD = 10 pesos, so you can see that using USD will make things more expensive for you
I also understand hotel is NOT good for exchange.. then where do I go?
* If you want to exchange cash for cash, then hotels are generally not the best - they tend to have worse exchange rates due to the captive market - a lot of people won't want to go elsewhere to find a better exchange rate.
Also- mixed information about using credit cards... very confused
* This is because there isn't any one universal answer. I tend to use my credit card to pay for hotels and rental cars and sometimes a tour, but mostly i use cash to pay for things when outside the US.