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.
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:
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.
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:
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.