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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