Credit cards can be an invaluable resource when traveling, yet many struggle with how many to bring on each trip.
There is no one-size-fits-all answer to this question; rather, your credit score, ability to manage balances, and reward goals should determine the number of cards you carry.
Having a backup card
Dependent upon your financial situation, whether or not to bring multiple credit cards when traveling is up to you. But it would be prudent to bring at least two as having an emergency back-up card could come in handy in an instance when one becomes lost or stolen while vacationing – such as keeping an additional credit card safe within your hotel in case it needs to make an immediate purchase.
As well as carrying an emergency backup card, it’s also wise to bring a debit card from a different bank as an added measure in case your primary cards get skimmed or declined while traveling abroad. Furthermore, multiple credit cards should also be brought along to maximize rewards earning opportunities and gain access to premium travel perks and benefits such as rental car collision damage waivers, fine dining restaurant discounts, or hotel upgrades – be sure to verify any foreign transaction fees for each card before going abroad!
Convenience
With so many credit cards offering a range of rewards, it can be tempting to carry multiple cards in your wallet. Different cards may provide different payment options or rewards (miles, points or cash back) or purchase protection benefits; having more than one may even help build your credit score depending on how often and frequently accounts are opened and used; however it’s important to remember that having too many can harm it; no more than two accounts should be paid off every month for best results.
Foreign transaction fees
Credit card users often don’t understand the foreign transaction fees (often 3%) that their banks assess on purchases made abroad, which are usually hidden in fine print and add up quickly. NerdWallet’s card matching tool enables consumers to locate cards that do not charge these fees.
Fee amounts vary between card issuers, but are often comprised of two charges: one from the issuing bank and another from a payment network such as Visa or Mastercard. Customers who wish to avoid these extra costs can select cards without them and avoid additional expenses when making purchases outside the U.S. Card issuers are required to list foreign transaction fees on monthly statements so you can easily identify whether your card has one; otherwise it would be wise to read your terms and conditions prior to traveling if in doubt.
