Going on a trip? Don't let sky-high fees and foreign transaction costs dampen your vacation vibes! If you're planning on using your credit card while abroad, choosing the right one can save you a ton of money and give you some seriously cool perks. In this article, we'll discuss the top credit cards for use abroad, what to watch out for, and how to maximize your benefits. Let the adventure begin!
Credit Cards For Use Abroad Table of Contents
Why You Need a Credit Card for Use Abroad
Foreign Transaction Fees
The most important thing you need to consider when using a credit card abroad is the foreign transaction fee. These pesky fees can range anywhere from 1% to 3% of the total transaction amount. That might not sound like much, but they can add up pretty quickly on a big trip. Thankfully, there are several credit cards out there that don't charge any foreign transaction fees, and we'll cover some of the best ones in this article.
Travel Perks and Benefits
Many credit cards come with travel-related benefits like free checked bags, car rental insurance, and even lounge access. These perks can go a long way in making your trip more enjoyable and stress-free, so it's essential to consider them when choosing a card for use abroad.
Rewards and Cashback
Cards that offer rewards or cashback for purchases made abroad can help offset some of your expenses. It's always nice to know that you're getting something back for every dollar you spend while traveling.
Top Credit Cards for Use Abroad
- Chase Sapphire Preferred: This is an excellent option for frequent travelers, thanks to its 2x points on travel and dining purchases and 1x points on everything else. With no foreign transaction fees and a wide range of travel benefits, this card is a top choice for using abroad.
- Capital One Venture Rewards: This card offers a simple rewards structure (earn 2x miles per dollar spent on every purchase), no foreign transaction fees, and a sizable sign-up bonus that can help fund your next trip.
- Bank of America Travel Rewards: The Bank of America Travel Rewards card has no annual fee, no foreign transaction fees, and gives you 1.5 points for every dollar spent. Plus, if you're a Bank of America customer, you can earn a bonus of 25% to 75% depending on your banking relationship.
- Discover it Miles: Another no annual fee, no foreign transaction fee card with a unique rewards structure, earning you 1.5 miles per dollar spent. At the end of your first year, Discover will match the miles you've earned – so you're essentially getting 3 miles per dollar spent on your first year of purchases!
Credit Cards For Use Abroad Example:
Imagine you're planning a two-week backpacking trip around Europe. You've budgeted $2,500 for the entire trip, including all your flights, accommodations, food, and activities. If you were to use a credit card with a 3% foreign transaction fee, you'd end up paying $75 just in fees!
Now, let's say you have a Chase Sapphire Preferred card and use it for your purchases abroad. Your total expenses are still $2,500, but you won't have to pay any foreign transaction fees. On top of that, you'll earn 2x points on dining and travel purchases, potentially earning you enough points for a free domestic flight when you get back home. Plus, you'll have access to travel-related benefits like trip cancellation/interruption insurance, which can provide some peace of mind during your adventure.
Traveling the world doesn't have to come with exorbitant fees and charges. With the right credit card, you can save money, earn rewards, and make your trip more enjoyable. Choosing a card that suits your travel style and spending habits is crucial, so do your research and find a card that works best for you. Are you feeling inspired to plan your next adventure? Go ahead and share this article with your fellow travel buddies and explore other helpful guides on Flik Eco. Bon voyage!
