Don’t know which credit card to use overseas?
You may have to consider if your regular credit card is the right choice
Or if packing a travel credit card suits you better
Let’s test it out!
Test no.1
Does your card have fee-free overseas transactions?
Whether it’s shopping, eating out or heading to a museum
Some cards charge you when you spend overseas
Let’s say you went on a 2 week holiday overseas and our credit card has a 2.50% margin…
You spend:
$1000 on eating out
$1000 on shopping
$300 on day tours
$200 on transport
You pay in fees:
$25
$25
$7.50
$5
That’s a total of $62.50 just in fees!
Imagine what you could spend that cash on instead!
So it’s worth checking if your credit card has transaction fees or a foreign exchange margin before you go
Test no.2
Is there complimentary travel insurance on your credit card?
Travel insurance is a must if you want to be covered when heading overseas
So if your credit card already offers it
Your job is half done!
Remember!
There are sometimes conditions to qualify for travel insurance on your credit card
Like having to spend a certain amount on booking flights or travel expenses before you leave
Plus cover can also be limited so you may need to take out more with another insurer
Test no.3
Does your card have a frequent flyer rewards program?
While rewards aren’t 100% necessary, they can be a good way to save on travel expenses or earn point on them
You could end up using points to book a flight or snag an upgrade
Or you could even rack up points while you’re away for the next time you travel
Was it a pass or a fail?
A pass? Great! Take that card overseas with you
But if it was a fail…
You may want to consider a travel credit card instead, it’ll likely have these features