Utilizing a credit card when shopping abroad can save money, time and hassle while often offering rewards such as points or cash back for each purchase.
Before your trip, find out if the card you plan to use is widely accepted in your destination country and what protections may come included with it.
1. Convenience
While more places than ever accept credit cards, it’s advisable to keep a backup plan when traveling abroad. Should there be limited acceptance, having another network card handy may save money by eliminating or reducing foreign transaction fees.
Credit card companies usually provide better exchange rates than currency stands or banks, plus depending on which card you select, your purchases could qualify for insurance coverage that protects against lost or stolen items.
Some travel credit cards even offer special perks, like airport lounge access, airline or hotel discounts and automatic upgrade offers on flights. But it’s important to keep in mind that these premium rewards cards usually require a good-to-excellent credit score to qualify. Take a free credit score check with Experian Boost(r)o before applying for premium rewards cards; it only takes minutes! It could give you confidence to carry a card along on your next adventure abroad!
2. Security
Credit cards provide more security when traveling than debit cards, especially those equipped with EMV chips. Credit card issuers generally offer robust protections like zero-liability policies against unauthorised transactions and fraud; additionally they may offer better exchange rates than currency stands or ATM machines and provide insurance against rental car delays, travel disruptions and lost luggage.
Traveling with only one or two credit cards is wise; that way, pickpockets won’t find it easier to steal them all at once. Furthermore, it would be prudent to bring an alternative card issued by another issuer just in case your primary one becomes stolen or flagged for suspicious activity while you are away – this way your trip won’t be interrupted or delayed in any way!
3. Earnings
Your credit card may seem unnecessary when travelling abroad, but using one could bring unexpected rewards. Depending on which card you select, cash back or reward points could potentially be earned when purchasing airfare, hotel stays and dining services; plus there may be options without foreign transaction fees available as well.
These fees can quickly add up, especially if you plan on spending a significant amount in another country. To mitigate costs further, it may be worthwhile searching for cards with travel protection benefits like lost luggage reimbursement and travel accident insurance.
On-time payments will help improve your credit score, which could prove essential when taking out loans or renting an apartment in the future. Carrying a credit card while traveling can be a great way to save money while providing extra security and benefits – perhaps even benefitting future trips!
4. Convenience
Many credit card issuers provide their customers with access to special booking platforms or have established agreements with third-party travel providers in order to help maximize rewards earned when booking flights, hotels or rental cars.
Credit cards provide access to loans from banks that you then repay through monthly statements. But remember: even when making small purchases, debt can quickly accumulate.
Relying on credit cards may make unexpected expenses easier to cover and can be more convenient than carrying cash around with you, provided that they’re paid off on time to avoid incurring interest charges. Just be sure that when making purchases with them that the balance will be cleared promptly so as to avoid incurring late fee or interest charges.
Consider the benefits of each card you use when traveling. Some cards provide better currency exchange rates, while others may come equipped with liability protection and travel benefits like rental car insurance. When selecting your credit card, always review fees, interest rate and rewards to make sure you are maximizing your travel experience.
