Travelling can be an expensive experience and ensuring there’s financial security if an unexpected cost arises or you need to get out of a difficult situation can be difficult.
A credit card can become a suitable lifeline, however seeking out the most suitable credit cards for when you’re travelling is different compared to finding the best for your current situation.
Fortunately, there are vast options available to consumers searching for credit cards and lenders are always developing new account types to suit specific situations.
Preparation prior to travelling can be a large money saver if you need to use the credit card and also to minimise the payback costs.
A key element in choosing the best credit card is to find an option which suits your travel plans. Interest rates are where lenders make a return on their crediting investments, therefore it’s always wise to search for lenders with low or 0% interest rates.
However, it’s important to consider whether the credit cards terms and conditions are still valid if used in the location where you’ll be travelling. This means that if incorrectly researched, you might have a credit card that boasts 0% interest for a specific period but only on UK purchases and when used abroad, has a much larger variable interest.
This thorough research will reap rewards when you don’t get charged with a large, hidden charge or includes unnecessary cover like previously missold payment protection.
Furthermore, keep in mind your credit score and know that even when denied, applying for a credit card will be recorded and having too many denials is not going to be a good thing for your credit score. Below, you´ll see the most popular travel credit card options currently available.
Halifax Clarity: This travel credit card is widely popular due to its low rates and because it does not charge any fees when used abroad for either purchases or withdrawals if you follow certain criteria. It has 0% exchange rate fee if used anywhere in the world.
Aqua Reward: This card is popular because it focuses on people with little to no credit records but still is pretty favourable when used abroad. The Aqua Reward card has similar terms to the Halifax clarity card.
Barclay Platinum Cashback: This option is for applications that are not existing Barclaycard customers and it does come with many benefits. 0% fees on any type of purchase, and cash back on all spending until 2023.
In addition, there is no charge for overseas withdrawals as long as you pay your balance in full every month, unlike other cards that start charging right away.
Tandem: Similar to the other options, this credit card won’t charge fees when used abroad, as long as the balance is paid at the end of each month. However, unlike Barclay Platinum, Tandem does charge for overseas withdrawals, but there is no exchange rate fee worldwide.
There are many more credit card options available but as mentioned, the key components to remember is the amount to be loaned, interest rates and applicable factors when used abroad or at the travel location.
In addition, try to keep in mind that usually, the exchange rate is more favourable for Mastercard than it is for Visa. Another advisable aspect to consider is that you have a clear understanding of your travel requirements as well as when you need to use the credit card.
Utilising a credit card whilst travelling can provide the financial fall-back and security which is highly sought. If correctly used, then you’ll have additional financial support for when you require either protected payments or extra money for an unexpected cost.
If you feel that a credit card wouldn’t be suitable for your travel plans, then check out alternative loan methods such as bank loans if you require a larger sum.
We highly recommend following advice on how to use the credit card to minimise repayment fees and ensure that you adhere to all the terms and conditions. Incorrect usage of a credit card can have a significant negative effect on spiralling debts, especially when you do not manage them whilst travelling.