How to Compare Credit Cards for Use Abroad
Use Abroad Credit Card Best Buys
Use Abroad Credit Card FAQ's
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Whether travelling abroad on business or pleasure, most people don't want to deal with the hassles and security issues of carrying a large sum of cash around. This is why many people rely on the convenience, flexibility, and security of credit cards when travelling abroad.
However, making sure you're using the right credit card for use abroad can mean the difference between a relaxed smile on your face or a bill for hefty charges and interest on your return.
Choose the right credit card for use abroad and you can make sure you're not paying out for the privilege of using your card!
These cards are best for...
Most credit cards are widely accepted in many different countries, so you can enjoy being able to spend without having to worry about carrying money around with you all the time.
In addition to increasing security for yourself and your loved ones, which is something that can be compromised if you are carrying large sums of cash around with you, having a credit card handy when you are abroad makes life so much simpler and more convenient.
You can use your credit card to make purchases as well as to make cash withdrawals whilst you are overseas. Whether you are paying for accommodation whilst abroad, using your card for a little retail therapy or to buy gifts, or using your credit card for everyday purchases such as food, drink, and travel, you will find that having a credit card with you makes life far easier.
Making sure you have the right credit card for use abroad is important, even if you are just taking it as a back up to your debit card.
Knowing what's on offer...
- Foreign Transaction Fees
When using a credit card abroad the biggest thing in terms of hidden charges to watch out for is the 'foreign transaction fee'.
Foreign transaction fees are charged when you use your credit card abroad, and most credit cards charge around 2.75% of the transaction amount.
However, choose the right credit card and you could see this fee go from the usual 2.75% right down to 0% - free use abroad!
The best credit card for use abroad, in terms of avoiding any foreign transaction fees is the Post Office credit card, offering a 0% fee, effectively it doesn't charge a foreign transaction fee at all.
You can view the best credit cards for use abroad here.
- Cash Transactions
Cash transactions are the next thing to watch out for when using a credit card whilst your abroad, and just before you go too.
Buying foreign currency or traveller's cheques is considered by all credit cards as a 'cash transaction'. Credit card cash transactions usually incur higher interest rates and handling fees - so it's important to know what your card charges, and if you can, make sure you have the best credit card for cash transactions.
Although they can be hard to find, there are credit cards around that do not charge the usual handling fee on cash transactions, and some cards offer a 'cash' interest rate that is the same as the standard purchase rate.
The other important 'term and condition' to know about using credit cards for cash transactions is that the interest free period (the time you have to repay your statement in full before you are charged any interest) usually only covers purchases.
This means that when you use a credit card for a cash transaction, you will charged interest from the date of the transaction, even if you repay your balance in full at the end of the month.
However, there are a handful of credit cards that include cash transactions in their interest free period, so if you repay your balance in full, you won't be charged any interest on your cash use.
The Post Office credit card is one such credit card that includes cash transactions in their interest free period.
You can view the best credit cards for cash transactions here.
- Travel Services
When travelling, your credit card can really be your most helpful travel companion. That is, if you're carrying a credit card offering an arsenal of travel services - which many cards do!
If you've ever come unstuck abroad or the worse has happened, you'll know how stressful it can be. However, if you're carrying the right credit card, you could have your bank or building society waiting patiently at the end of a phone line to help you out at a time when you need it most.
The travel services offered by credit cards are usually free, however they can vary.
The travel services to look out for when choosing a credit card for use abroad, include emergency assistance abroad and emergency cash and card replacement services. Many credit cards also offer free travel insurances when you pay for your trip on the card, these can include full comprehensive travel insurance, travel accident insurance and / or travel inconvenience insurance - flight delay and lost luggage cover.
The MBNA Travel American Express credit card offers a staggering amount of free travel services, from a concierge service and VIP airport lounge access, right the way through to comprehensive travel insurance and flight delay and lost luggage cover. This card is an amazing travel companion for any regular traveller, however it does carry an annual fee.
Similarly, the Goldfish i24 credit card offers enough travel services and benefits to please even the most frequent long-haul traveller, and although the card claims to be worth almost 4 times the cost of the annual fee - the annual fee is quite a sum at £275.
If you do not want to pay the annual fee, or travel more occasionally, there is still a range of credit cards offering very decent travel services, including the British Airways credit card from American Express.
You can view the best credit cards for travel services here.
- Travel Discounts
While you may not necessary want to wait to tot up a decent travel reward by earning points or flyer miles on a credit card, a quick fix offered by many credit cards are travel discounts.
Travel discounts can vary, with a decent number of credit cards offering travel discounts via their travel service or with partner travel operators and companies.
Getting a credit card offering travel discounts could see you saving yourself a nice discount on your travel on services from airport parking right the way through to package holidays.
Travel discounts can include travel insurances, airport parking, hotel accommodation, flights and even tour operated holidays.
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Compare credit cards for use abroad
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