No matter if it is for business or pleasure, credit cards make international purchases easier than ever with benefits such as insurance policies for consumer goods, travel delays and lost luggage.
However, some credit cards include overseas fees like foreign transaction and currency conversion markup charges. By following these tips you can minimize these expenses and potentially earn rewards at the same time.
Know Your Card’s Limits
When traveling abroad with your credit card, it is vital that you know its limits. Otherwise, you could end up racking up a staggering debt that will be difficult or impossible for you to repay and may leave you in financial difficulty while away.
An abundance of cards is always beneficial in case one is lost or stolen, while choosing one with no foreign transaction fees can lower travel costs significantly.
Notifying your bank that you will be traveling overseas is critical, as some cards can freeze if they detect suspicious activity. You can typically report your trip via online banking or mobile apps. Regularly reviewing your balance and statement can help prevent overspending and additional charges.
Know Where to Use Your Card
Credit cards make travel purchases easier by eliminating the need to carry large bills and often waiving currency conversion fees. Many cards also provide various travel protections. Some cards, like the NerdWallet Picks for Rewards Card, even allow users to earn bonuses, cash back or points with international purchases.
Before traveling abroad, research the countries you plan on visiting to determine which credit cards are widely accepted there. Visa and MasterCard tend to be widely accepted throughout Europe while Discover and American Express only have a limited presence there. Also consider carrying an alternate payment card issued by another issuer just in case one card doesn’t work or flagged for suspicious activity during your journey; make sure your credit limit covers your trip!
Know Your Card’s Terms
Credit cards often charge fees when used outside of their home country; typically these charges represent a percentage of the purchase amount. When searching for the ideal travel credit card, consider one which waives these fees or has added benefits such as rewards programs with points accrual opportunities.
Be sure to notify your card issuer of your overseas travel plans so your card won’t be flagged for suspicious activity, and carry some cash as a safety net in case payment systems go down or vendors only accept cash payments. Some overseas cards offer interest-free withdrawals, while others may charge fees or higher rates of interest on outstanding balances.
Know Your Card’s Fees
As a cardholder, it’s your right to understand all of the fees your card charges you for, such as currency conversion or foreign transaction fees – these costs can quickly add up during an international trip!
The best credit cards for travel don’t charge foreign transaction fees and offer additional perks like zero fraud liability coverage when your card is lost or stolen. Furthermore, using Experian CreditMatch(tm), you can compare cards without foreign transaction fees that offer rewards such as cash back, airline miles or hotel points on every purchase made.
Be sure to inform your card issuer of your travel plans early so they won’t mistakenly freeze your account for suspicious activity while you’re gone. Also consider carrying an alternative form of payment in case there’s an unexpected emergency or delay during your trip.
Know Your Card’s Rewards
Credit cards with bonus rewards can provide more value when traveling abroad than flat reward rates can. By understanding how to maximize foreign travel categories on their credit cards, travelers can increase points earned and reduce fees as much as possible.
Some credit cards offer zero foreign transaction fees and allow cardholders to earn bonus miles on overseas spending – these cards can be especially beneficial when making airfare, hotel and car rental purchases.
Informing your card issuer of your travel plans can help protect against unwanted charges and fraud, and increase their vigilance in detecting suspicious activities – potentially reducing fees and pickpocket scams when you swipe your card abroad. In most cases, it will be necessary for you to inform them beforehand of your intention to travel internationally.
