A vacation abroad can be an amazing experience, but it can also create some financial problems if you’re not careful about how you use your credit cards.
The most important thing to remember when using credit cards abroad is that it costs money to use them, even if you’re paying in the same currency. Foreign transaction fees and currency conversion rates apply, so be sure to factor those into your budget before booking your trip to avoid any nasty surprises upon your return home. Here are 10 tips for using credit cards abroad without going broke.
10 Tips for Using Credit Cards Abroad
There are several tips and tricks for using credit cards overseas to avoid the extra fees and financial issues. Here is the most important tips that might helpful for you.
First three of them are pre-tips. Before Going abroad you should follow this tips.
Check the expire date on your Credit card
If you’re planning to use your credit card while traveling abroad, the first thing you should do is check the expiration date. Most cards have a three- or four-digit number on the front that indicates when the card will expire. If your card is about to expire, you’ll need to contact your issuer to get a new one.
Learn how to use your credit card abroad?
Credit cards can be a lifesaver when you’re traveling, but they can also be a quick way to rack up debt if you’re not careful. Here is short view for using credit cards abroad without going broke.
First, check to see if your credit card company offers a travel protection plan or any other perks that can be useful overseas. If you’re traveling outside of Europe, using a MasterCard might work out better than using a Visa because MasterCard is more widely accepted internationally. Avoid withdrawing money at ATMs in foreign countries, since it can be expensive—instead, use your credit card to pay directly in stores and restaurants to save on fees.
Compare cash and credit for overseas spending
There’s no one-size-fits-all answer to whether you should use cash or credit when traveling overseas. It depends on your spending habits, where you’re going, and how well you manage your finances.
For example, if you can’t stick to a strict budget and tend to spend freely, use cash. That way, you won’t end up paying high interest rates on credit card debt. If you’ve got good self-control, opt for credit cards. You’ll get better exchange rates than what’s offered at local banks, and often enjoy perks like insurance and fraud protection.
Check your credit card perks
If you have a credit card that you normally use at home, check to see if it has any perks for using it abroad. For example, some cards offer travel insurance or purchase protection. You might also be able to get a better exchange rate by using your credit card instead of withdrawing cash from an ATM.
Use a Credit Card with no Foreign Transaction fee
If you’re planning to use your credit card while traveling abroad, be sure to choose a card with no foreign transaction fees. This will help you avoid paying extra fees on purchases made in another currency. Here are a few other tips to keep in mind.
For example, Capital One® VentureOne® Rewards Credit Card charges no foreign transaction fees. Plus, you’ll get a one-time bonus of 20,000 miles once you spend $1,000 on purchases within 3 months from account opening. Miles can be redeemed toward any travel purchase.
Watch out for dynamic currency conversion
When you are using credit card overseas, you may be presented with the option to pay in U.S. dollars instead of the local currency. This is called dynamic currency conversion (DCC), and it can be a costly mistake. The exchange rate used by the DCC provider is almost always unfavorable, so you’ll end up paying more than you would have if you’d paid in the local currency. To avoid DCC, simply decline the offer and pay in the local currency instead.
Earn rewards on overseas credit card spending
There’s no reason to forego using your credit card in foreign country- in fact, if you use it wisely, you can actually earn rewards on your spending. Here are a few tips to help you do just that.
Make sure you find a travel rewards credit card that doesn’t charge foreign transaction fees on overseas purchases. (A good resource is Bankrate’s list of no-foreign-transaction-fee credit cards.) You’ll also want to make sure that your credit card has a good reward earning rate – especially if you’re traveling internationally in a country that doesn’t use U.S. dollars, such as Japan or Argentina.
Check your statements after return home
As soon as you get home from your trip, check your credit card statements to make sure there are no fraudulent charges. If you see anything suspicious, call your credit card company right away. Additionally, keep an eye out for foreign transaction fees, which can add up quickly if you’re not careful. To avoid these fees, try to use a credit card that doesn’t charge them or use a debit card instead. Finally, remember to pay off your credit card balance in full each month to avoid interest charges.
Is it safe to use credit card international?
If you’re like most people, you probably don’t think twice about using your credit card at home. But what about when you’re traveling abroad? Is it safe to use your credit card overseas?
The short answer is yes, it’s safe to use your credit card in foreign countries as long as you follow a few basic tips. After all, using your credit card overseas is one of the easiest ways to pay for items when you’re traveling. It gives you more buying power and allows you to easily exchange currency without having to carry around cash. The same rules apply whether or not you have an international travel plan through your bank or credit card company—and, thankfully, it’s all quite easy!
How do I avoid foreign transaction fees abroad?
Most credit cards will charge a foreign transaction fee whenever you make a purchase in a foreign currency. To avoid these fees, you can either use a card that doesn’t charge them or take some steps to minimize the fees you do pay.
The most common way to avoid foreign transaction fees is to use a credit card with no foreign transaction fees. There are several of these cards on the market, including: Capital One® VentureOne® Rewards Card, Barclaycard ArrivalTM World MasterCard®, and BankAmericard Travel Rewards® Credit Card. All of these cards charge no annual fee, have fairly low interest rates and give you rewards points that you can use to help offset future travel expenses.