About Travel Credit Cards
What is a travel credit card?
A credit card that is designed for use abroad will typically be one of the cheapest ways to take money abroad. Many credit cards charge over 2% in transaction fees when you use your card outside of the UK, whereas a card designed for use abroad will not charge this additional fee, which could save you substantial amounts over a holiday.
It’s important when using your card abroad that you pay the balance off in full when you get home, as otherwise any interest you’ll be charged will cancel out the benefits of using the card.
Some debit cards can charge as much as 2.75% transaction fee plus £1.50 for every payment, which can add up to a lot over the course of a holiday.
Which is the best card?
As with all credit cards, it’s impossible to say which is the best card as it’s different for every person and every situation, but there are a few things to take into account when deciding which card is the best for you. Some cards require you to spend a certain amount each month before you earn commission free shopping abroad, whereas other cards charge an annual fee but offer other benefits such as annual travel insurance. It’s worth thinking about how often you’ll use the card and how much you’ll spend in a year to pick the one that fits your lifestyle best.
Which providers offer this type of card?
Several credit card providers offer cards that are great to take abroad, including The Post Office, aqua and Nationwide.
Are there alternatives to a travel credit card?
If you don’t want to take a credit card abroad, or are worried about spending over your holiday budget, you can compare foreign currency and prepaid cards to make sure you're getting the best deal on your travel money.