Credit cards are excellent tools, especially for travelers. If you do not wish to carry cash while abroad, your credit card will serve as your best friend. However, some cards often charge you with high interest rates whenever you use them overseas. To avoid high transaction fees, it is best if you use international credit cards with no transaction fee. There are several of these types of cards in the market and some of them are listed below.
Capital One Venture Rewards
This is considered as one of the best rewards cards for travelers. Aside from the fact that this can be used abroad without extra fees, you also get back a percentage every time you use it. Even though the percentage reward is not redeemable in the form of cash, it can be used for travel purchases, particularly when you have accumulated a certain amount of it. You can use your points for airline tickets. Apart from that, you are also not required to choose just one airline or hotel when using your card. The points have no blackout dates and you also get to enjoy no seat restrictions. The annual fee of this card is waived for the first year.
Chase Sapphire Preferred
If you are searching for a card that gives a hefty bonus upon sign up, then this card is perfect for you. The Chase Sapphire Preferred from JPMorgan Chase is among those that give better offers to their account holders. It gives a generous amount of bonus points, which can then be converted or redeemed for airline tickets when they have reached a certain number. It also gives an enticing bonus annually for the points that you have earned for the year.
Escape by Discover
Discover eliminated its foreign transaction fees in the late 2011. Escape by Discover is a rewards card created specifically for travelers, particularly those who visit Asia frequently. When you sign up, you will earn a thousand bonus miles monthly for 24 months and other bonus miles when your application gets accepted.
How to Use Credit Cards Efficiently when Overseas
Here are some tips that you can keep in mind to make sure you truly save cash while traveling abroad:
- Ask the merchants that you are dealing with to charge your card in their local currency. This is particularly helpful when you are in a city that has high tourist traffic. Often, the retailers will convert your purchases into dollars, which may prove less favorable to you because conversions are often made at unreasonable exchange rates.
- Some credit cards have the EMV smart chip. Verify that you have your personal identification number or PIN with you before you leave the US. This is vital, especially if you will be traveling to Europe, since most merchants there do not accept cards without complete identification. If your card does not have an embedded smart chip, always carry your passport with you.
Before you leave, contact your issuer and let them know about your trip. This can be useful in case you lose your card or you need emergency funds.