Travelling abroad is one of the most thrilling experiences a person can have, but for many, the management of money using various currencies and payments can be quite stressful.
The travel experience can be simplified and costs minimised primarily by selecting the best international credit card issued by the bank. Travel credit cards do not impose foreign transaction fees, accrue rewards and unlock a great range of benefits.
In this all-inclusive guide, we will explain how a traveller can select the best international travel credit card, the card types one should consider, the fee-to-reward ratio, and the perks which can smoothen up the trip.
The right card will allow you to further improve your experience when you need to purchase a flight ticket, pay for a meal, or rent a vehicle.
Key Takeaways
- No Foreign Transaction Fees: Make sure to pick a card with no foreign transaction fees so that you won’t have additional charges when travelling to another country.
- Maximize Rewards: Seek out cards that provide bonus points on travel, such as flights, hotels, and meal purchases.
- Consider Travel Perks: You can get a lot of value by using travel perks such as access to airport lounges, travel insurance or rental vehicles.
- Evaluate Annual Fees: Consider the annual fee alongside the rewards and the benefits. It is important to ensure the card provides enough value corresponding to the expenditures on your travels.
- Tailor to Your Travel Style: Use this card according to your needs, for example airline miles, hotel stays, and general bookings.
What to Look for in a Travel Credit Card
When deciding on the most appropriate credit card for foreign travel, the best one is not determined solely by the usage of the one with many benefits. It is rather an assessment of a number of variables which will meet your distinct travel requirements. These are some of the important considerations to take into account:
Key Features to Consider:
- No Foreign Transaction Fees: When travelling abroad, it’s a great option to look for a card that charges no overseas fees, as these charges, which can incur between 2-3 percent per transaction, can accumulate while you’re off enjoying your holiday.
- Rewards on Travel Purchases: While applying for a travel credit card, check if the card provides bonus points or mile rewards after purchasing flights, hotels, or other travelling in general, as these sudden offers can make the card worthwhile.
- Travel Perks: There can be a variety of extra goodies available such as purchasing the travel cards such as upgrading rooms, airport lounges, or insurance when purchasing the travel cards.
- Annual Fee: It is advisable to check the annual fee of the card, as some cards can offer major bonuses at the cost of a high yearly fee while there can be cards with no annual charge but offer minimum perks.
Evaluating Your Travel Habits
Before applying for a credit card for international travelling purposes, it’s important to look back at your travelling patterns. In your case, perhaps you have the tendency to travel a lot for either work or for leisure, or maybe you continuously use the same airline/hotel brand which can make it easier for you when applying for any card.
Once again analysing your travelling behaviour will give you a better idea of which card is right for you. For example, if you frequently visit hotels search for such cards that reward you with hotel points, whereas if you are rarely at a hotel and more likely to fly constantly then look for cards specifically focused on travel rewards cards.
Understanding Annual Fees and Their Impact
In the case of a credit card that charges an annual fee, it doesn’t imply that every annual travel card that demands a fee would not be of any use. For instance, a number of premium airplane cards having higher annual fees let cardholders enjoy several benefits such as lounge use at an airport, a travel allowance, among other things.
Here’s how to know when an annual fee justifies itself:
Types of Annual Fees:
- No Annual Fee Cards: These generally have the most basic rewards and few perks. They are good for people looking for a travel card without an additional cost.
- Moderate Annual Fee Cards ($95 – $150): These cards have an increased reward rate for travel spending and a few travel-related benefits such as hotel forgiveness or rental car insurance.
- Premium Cards ($300+): High-fee cards have more features such as lounge access, travel accident insurance, better hotels when travelling, and much more.
Here’s a summary of what you get for what you pay in the annual fee in a tabular form:
| Card Type | Typical Annual Fee | Benefits |
|---|---|---|
| No Annual Fee | $0 | Basic rewards on travel; no foreign transaction fees. |
| Moderate Fee | $95 – $150 | Enhanced rewards, some perks like travel insurance or credits. |
| Premium Fee | $300+ | Airport lounge access, hotel credits, 3x-5x points on travel, global entry credit. |
How Rewards Programs Work for International Travel
Using a travel credit card is advantageous as it has a rewards programme which is one of the foremost reasons to go for it. Some cards provide points, miles or cash back depending on how much you spend while you are out on an international trip.
What Are the Best Types of Rewards?
- Airline Miles: These are beneficial for people who are frequently travelling and always buying flights. Borrowing from Delta Sky Miles® and United MileagePlus®, cards of these sorts come with miles which you can use to get flights or make upgrades.
- Hotel Points: The Chase Sapphire Preferred® or the Hilton Honors American Express card are great options if you are a frequent guest at Marriott or Hilton Chain hotels, as it allows you to earn points which lead to free night stays and even upgrades.
- General Travel Points: Flexible booking options are available with the use of the Capital One Venture Rewards Credit Card and Chase Sapphire Reserve®, allowing individuals to book flights, hotels, a rental car or cover other travel expenses.
How to Maximize Travel Rewards:
- Book Travel Through Card Portals: Booking through your particular card portal can lead to extra points; try Capital One Travel or Chase Travel℠.
- Earn Extra Points on Travel Purchases: Certain credit cards offer bonus points on purchases made with the card; for example, 3x points can be earned if the card is used to buy food or 5x points can be earned through using the card to buy travel from a travel portal.
No Foreign Transaction Fees: Why They Matter
Should you make a purchase outside the United Kingdom, each transaction you make will almost always incur a fee of either 2 or 3 percent. Due to this, it is fairly easy to see these fees accumulate when you travel; so for example, if you were to spend £1000, you would end up paying an additional £30 in foreign transaction fees.
To guarantee that you don’t have to pay any foreign transaction fees, consult the certain credit travel cards as they are advised for use.
- Chase Sapphire Preferred® Card
- Capital One Venture Rewards Credit Card
- American Express® Platinum Card
Benefits of No Foreign Transaction Fees:
- Cost savings: Save money regardless of the country where the purchase is made through a card alternative.
- Convenience: Breathtakingly use your credit card without thinking fearful thoughts about supplementary payments.
- Better rewards: You augment the obligations of your debit card (credit card) rewards structure without any other payment.
Top Travel Credit Cards for International Travel
Having addressed fundamental things to consider for travelling and using a credit card, let’s reiterate some highlights about good international spendable travel cards.
Chase Sapphire Preferred® Card
Key Features:
- Double the expenditure on travelling and dining out
- Transactions with clients outside the US incur no further charges
- Bonus redemption is quite versatile via having Chase Ultimate Rewards
- Annual fee: $95
Why It’s Great for International Travel:
The lack of extra fees for global transactions makes the Chase Sapphire Preferred® Card an ideal credit card for international voyages along with the exquisite travelling rewards that this card provides. As you book tickets, pay for meals, or rent a car, the expenditures will result in accumulating travel points which would be redeemable for that travel or easily converted to air and hotel companies.
American Express® Platinum Card
Key Features:
- Earn 5x points for travel booked via the Amex Travel portal.
- No fees for foreign transactions.
- Centurion lounge upon airports.
- $69 where every year is paid for being a member.
Why It’s Great for International Travel:
The American Express® Platinum Card is unrivaled if you want to ease off the heat and travel often in luxury. This is because with the AmexCard, you get elite hotel services, access to the premierElite airport lounges, travel insurance for off peak travel seasons, among many other essentials.
Capital One Venture Rewards Credit Card
Key Features:
- 2x miles on every purchase
- No foreign transaction fees
- Annual fee: $95
Why It’s Great for International Travel:
Citizenship changes everything, especially if you have the Capital One Venture Rewards Credit Card. With this card, there are no category restrictions. Once you have this card, every purchase that you make earns some miles. Earning free miles helps in travel across borders where you can purchase what you want without worrying about the cost.
How Travel Perks Enhance Your Experience Abroad
Even on rewarding travels, have the peace of mind that you have an ample amount of security to protect you. Thus, there are many features that set the travels apart from the normal trips. Here are some:
1- Airport Lounge Access
Several premium travel credit cards globally have provided users with automatic membership to airport lounges. Examples are Chase Sapphire Reserve and American Express Platinum Lounge. Their services include food, beverages, a relaxing environment, and charging services. In short, these lounges are masters of preparation for lengthy shifts or morning flights.
2- Travel Insurance
There are, however, some cards that have travel accident insurance that provides assistance such as medical coverage, coverage for delayed flights, as well as for lost luggage. For example, American Express Gold Card flight delay benefits and Chase Sapphire Preferred flight loss insurance.
3- Car Rental Coverage
Such travel cards offer a car damage waiver to any client visiting international markets plus rental cars that are scheduled to come with perks like the Chase Sapphire Reserve that features a primary rental cover.
How to Choose the Best Credit Card for International Travel
In terms of selecting a suitable travel credit card for the purposes of international travel, individual preferences matter a lot. Hence, wherever possible, the selection process should revolve around and aim at considering logins and style.
Consider Your Travel Style
- For those who travel a lot by air, it is better to buy credit cards that include airline miles or frequent-flyer benefits in their package.
- If you are someone who travels frequently and stays in hotels, brand cards are a great option to acquire.
Compare Rewards and Fees
When evaluating a credit card, check its rewards structure and assess how much you are likely to earn in return based on your normal level of spending. Also, take into consideration the annual fee payment, considering that the fee is supposed to be lower than the value derived from the card.
Look for Additional Benefits
Do you want benefits like travel insurance, hotel upgrades, airport lounge access? If you do, then go for a premium credit card that will provide all of that.
My Opinion
With international travel rewards cards, I believe anyone can enhance their travel experience while spending less. For the effective use of various travel plans and expenses when travelling abroad without any additional unexplained fees, a great cash-back rewards card with zero foreign transaction fees and excellent travel benefits would be best.
Booking on Chase Travel℠ and dining in New York City or renting a car in Paris has never been so easy; all you have to do is get the right credit card, and everything will be stress-free.
As you think about the international travel credit card, keep in mind that there is a card provided for one’s style and way of doing things, and all it really does is make every delicate aspect easier without losing the enjoyment of the trip and allowing for budgeting. Until next time, peace!
