Charles H. Miller
Visiting other countries is exciting, but if you are not careful – that could also be an expensive experience. One way or other, you will spend money on drinks, food and accommodation – but you don’t need to overpay on your credit card usage. There are fees you’ll want to avoid and this article will help you save some cash on every travel you make.
1. Use a Card that Has No Foreign Transaction Fee
Most non-travel-focused cards have a foreign transaction fee of 3% and there is no good reason why would anyone leave this money to the banks. With such (non-travel) card, if you spend $1,000, the bank gets $30. No need to do that when there are many cards that don’t include a foreign transaction fee. We’ll help you select the right card, but more on that later…
2. Avoid ATMs
If you need cash bring it from home, and if needed — change it to a local currency. Using ATMs comes with a fee even if you use a debit card, with foreign banks taking a cut for their “services.” With credit cards, the ATM use will be charged as cash advance that typically comes with a higher APR (than APR on purchases and cash advances). If you, however, really need to use ATMs in a foreign country, make sure to have a card that won’t charge a lot (if anything) for this. You are, however, best off paying for everything with your credit/debit card.
3. Credit Cards are Better than Debit Cards
One of the reasons for this is simple – credit cards usually feature a number of shopping and travel perks that make sure you get a better experience. We are talking about different protection and insurances that may come in handy when/if needed. In contrast, very few debit cards offer something similar.
Another reason to use a credit over a debit card is that it provides you with access to more funds than you may have at your account. This shouldn’t be seen as an invite to a shopping spree; rather, it should make sure you don’t run out of money.
4. Two are Better than One
Bring more than one card to have it as a backup and/or to earn more rewards. Many of my friends carry 3 cards on their trips abroad: one of them is an airline-branded card, the other one is for the hotel chain they stay in, and the third one is for everything else. This way they get to collect points on every trip they take.
How to Find the Best Card?
With so many options on the market, it can be challenging to find the card that will work best for your unique needs. You should NOT start by visiting your favorite bank’s website as it features only the cards of that particular bank. Shop around instead, and the easiest way to do that is to click on the link below this article. There, you will find a number of different cards from multiple banks and other credit card issuers. Check it out.
