Choose A Credit Card With No Foreign Exchange Fee

The pitfalls of using your credit card abroad

Holidays can be pretty expensive without adding hidden extras like a nasty credit card bill when you get home. There are advantages to using your credit card abroad, it is safer than large sums of cash, for example, but it can also cost you serious money. If you use your card to purchase items, it may take some time for it to show up in your account, and you need to budget carefully, or you could have an unexpected shock a couple of months after you return from vacation and you suddenly have a bill to pay. The second shock is often the exchange rate, it may have seemed a bargain away from home but in home currency, it does not look like much of a deal. The third shock is when you see what your credit card company has charged you for the privilege of changing your drachma purchase into dollars or sterling. Before you go on holiday, you need to make sure that you take a credit card with no foreign exchange fee.

Selecting a Credit card with no Foreign Exchange Fee

Most credit cards add up to 3% on top of the exchange rates banks themselves get, which is significant over several purchases, so it makes sense to search for a credit card with no foreign exchange fee and follow a few other sensible tips on using credit cards abroad. Currently, for US credit card customers, the credit card providers offering fee-free cards are, Capital One card and the Schwab Invest First Visa some of the Chase and some of the Citi credit cards plus some local credit unions own credit cards are fee free.

Alternatives to your regular credit card

If your current credit card provider does not offer free foreign exchange transactions then consider taking out one of the prepaid credit cards in the currency of your destination country. You need to estimate your spend to preload the card, although if you have Internet access abroad, then you can top up online, and you can keep an eye on exchange rates before buying the currency. If you want a credit card with no foreign exchange fee you may have to add another credit card to your financial commitment, but be sure to pay off the balance in full as soon as you return from your trip, or the savings will be lost in interest charges.


Source: Credit Cards For People With Bad Credit Rating

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