Tips for Comparing & Choosing a Credit Card for Use Abroad

Use Abroad Credit Card Best Buys Use Abroad Credit Card FAQ's Have a question? Send in your question and we'll do all we can to help answer it. Where appropriate user questions will be added to the FAQ's for future use. Most recent questions: Q. What's the best type of credit card to use abroad? Q. Does my credit card cover purchases I make abroad? Q. Why is Dynamic Currency Conversion so bad? Q. Where can I withdraw cash abroad? Q. What is a foreign transaction fee? More frequently asked questions »

These cards are best for...

• If you regularly travel and shop abroad or purchase goods and services from foreign countries over the Internet.

What to look for...

• The lowest foreign transaction fee.
• Tip: The foreign transaction fee is a percentage of the purchase or cash withdrawal amount charged when you buy goods or services in a different currency, either abroad or on the Internet.
• The lowest interest rate, or typical APR, for purchases.
• The lowest interest rate for cash withdrawals.
• Tip: It is important to remember that purchasing foreign currency cash and even traveller's cheques is considered as a cash withdrawal and may be charged at a higher rate of interest to purchases.
• Does it offer any free travel services that can help you if the worse happens while you are abroad?
• Tip: Many credit cards offer free travel services, including emergency medical and legal assistance, lost luggage and flight delay cover, emergency card replacement services and other travel insurances. Find out more about free travel services.
• Does it offer any travel rewards?
• Tip: Some credit cards offer travel reward schemes or air miles, which can help to lower the cost of travelling.
• If you're switching cards, does it offer a good balance transfer deal?

What to watch out for...

• Is there an annual fee, and if so, how much is it?
• How much interest and what is the handling fee that you will be charged for cash withdrawals?
• Tip: Purchasing foreign currency cash and traveller's cheque are considered as 'cash withdrawals' when you pay with your credit card. You may be charged a higher rate of interest for these transactions and there is no interest free period.

Don't forget!

• When you withdraw cash on your credit card abroad, you will be charged the foreign transaction fee and the cash withdrawal handing fee.
• Tip: Remember that cash withdrawals are usually charged at a higher rate of interest than purchases, and you will be charged interest from the date of the withdrawal.
• Buying foreign currency is also considered a 'cash withdrawal' by most credit cards.

Make the most of your card...

• You may be interested in choosing a credit card that offers travel rewards, which can help reduce the cost of travelling.
• Tip: Travel rewards can be earned every time you use your card to make a purchase. Rewards can include flights, hotel stays, brochure holidays, car hire and more. Find out more about travel rewards.
• Choose a credit card that offers free travel services, if you do get caught out whilst abroad or the worse happens, you'll be able to call upon these services and get the help you need or receive compensation.
• Tip: Remember to budget your income so you can pay off your credit card balance each month and keep on top of your holiday shopping.
• Read more about shopping abroad with your credit card.

Compare credit cards for use abroad