Our guide to the best credit cards to use abroad
Travel credit cards can be a great way to spend on holiday, but if you choose the wrong one, you could be hit with high fees and charges. Our guide explains how to avoid the pitfalls
What is a travel credit card?
A travel credit card is a type of credit card that usually won’t charge you for spending overseas. Unlike standard credit cards, that can come with high interest rates and extra fees when used abroad, a travel credit card won’t charge you exchange fees. Travel credit cards aren’t to be confused with currency cards, or airline credit cards that offer rewards like airmiles for your spending.
Similar to other types of credit card, travel credit cards can give you financial protection if your spending doesn’t go according to plan. Under Section 75 of the Consumer Credit Act, if you spend more than £100 but less than £30,000 on your credit card and something goes wrong or isn’t as described, you can apply to your lender for a full refund.
How do travel credit cards work?
Using a travel credit card can be a way to avoid exchange fees when spending abroad. As long as you pay off your balance in full and on time each month, travel credit cards can be a more affordable way to spend on holiday.
Here’s some the key features of how travel cards work:
No foreign transaction fees: Travel credit cards are designed to be used abroad, so you won’t have to pay foreign transaction fees
Rewards: Some travel credit cards offer rewards like cashback, travel rewards and vouchers when you spend
Cash withdrawals: Some travel credit cards might let you withdraw cash from a cash machine abroad without charging you a fee. But the ATM you use may still impose fees, and you’ll still be charged interest on cash withdrawals even if you clear your balance each month
High interest rates: Travel credit cards often have high interest rates, which means if you don’t pay the balance off in full each month, you might end up cancelling out the exchange rate benefits
Not everyone is guaranteed to be accepted: You might need to earn a certain amount of money or have a good credit score to be accepted for a travel credit card
Monthly or annual fee: Because some overseas spending cards come with rewards and benefits, you might have to pay a monthly or annual fee to use the card
Check your credit card payment network will be accepted: Some countries you’re planning on travelling to might not accept payments with a Visa or MasterCard. It’s worth checking that your travel card payment network will be accepted in the country you’re going to before you leave
How to choose the best travel credit card
The best travel credit card will depend on how you’re planning to use the card and what features matter most to you.
Travel credit cards are specifically designed for travel, to save you money on exchange rates and extra fees that come with using a standard credit card overseas. You may be after a card that offers rewards on your spending, or one that has a low interest rate - often referred to as the annual percentage rate or APR.
If you’re looking to use the card for spending abroad, it may be worth looking for a travel credit card that doesn’t charge foreign transaction fees. It’s usually advised that you pay off the card in full each month to avoid any extra charges or negatively impact your credit score, but if you can’t meet your repayments, a card with a low APR may suit you best.
Alternatives to travel credit cards
Not sure if a travel credit card is the right choice for you? There are alternatives to travel credit cards, if you’re looking to make your overseas spending more affordable, including:
Prepaid cards: An alternative to carrying cash around with you, prepaid cards can be topped up and may be ideal if you want the security that comes with cashless payments. Watch out for fees though - some firms will charge you for topping up, spending and withdrawing cash
Debit cards: A debit card lets you spend the money you have in your current account – when used abroad, debit cards may come with extra charges or fees
Paying in cash: Prefer to take travel money with you abroad? Our travel money and foreign currency comparison page can help you find the most competitive exchange rates on the market
Compare travel credit cards with MoneySuperMarket
With many types of travel credit cards available, choosing the right card for you can feel overwhelming. But that’s where MoneySuperMarket come in.
Whether you’re after a standard travel credit card, or a card that comes with rewards, we compare deals from the UK’s leading card providers and banks, so you can choose the right option for your needs.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.