Overseas Cards
If you’re looking to use your credit card abroad, there are several issues you need to consider - first and foremost, of course, being whether your card can actually be used on foreign soil. That certainly makes a good start!
To compare the best credit cards for overseas please visit our
credit card comparison section
What many people fail to realise is that their credit cards are charged extra when you use them overseas. It’s inconvenient for the creditors so they pin extra charges on both cash withdrawal and foreign purchases.
Looking at the typical rates, most people will be charged an average of around 2.75% of the transaction in order to use their cards abroad. To put that in perspective, if you spend £100, you can expect to pay an extra £2.75 for the privilege of using the card abroad. This might not sound like a particularly large sum, but take note of the word “average”. There are many creditors in the top bracket who aren’t quite so understanding with their foreign charges.
If you land yourself an unsuitable credit card package, you can find the transaction charges hovering at anything up to the 6% mark. If you’re planning on running up a bill, that sort of percentage is going to make a dent eventually.
You’ll also be charged money for simply withdrawing money. Normally in the UK, we can roam freely and draw out money while avoiding penalty fees. Venture abroad however, and it becomes a whole different ball game. It’s unlikely that you’ll be charged at the same rate as the transaction charge.
You can usually expect withdrawal fees of around 1% to 2%. On the upside, most cast withdrawals aren’t likely to be for huge chunks of money. If you’re only drawing out £20, a charge of 20p probably isn’t going to make a grand difference.
You also have to weigh up the significance of overseas charging against the basic benefits of the credit card. What good is there in taking out a card with minimal charges on foreign soil if you get taken to the cleaners at home?
It goes without saying that accessing your funds while you’re on holidays can be a great reassurance, but for many people, it’s far from being a priority.
If you are genuinely planning on travelling a lot, however, you may wish to take a look at cards being offered by the Nationwide Building Society. These particular deals come without any form of charges on credit card usage abroad.
Liverpool Victoria are another provider offering free transactions away from the UK. But unlike the Nationwide Building Society, you won’t be able to skive off the charges when you’re travelling outside the EU. Bare this is mind.
It’s nice to have a credit card which avoids penalising you for use while abroad, but you should ask yourself whether it’s a feature that you’re likely to make the most of. If it isn’t, you’re better off focusing on the rates that you’ll be paying at home! These are going to be the most influential in your credit card plan.
To compare the best credit cards for overseas please visit our
credit card comparison section
