When traveling, a credit card makes for a convenient way to pay for purchases. However, you want to think about which card that you use. If you bring the right card, you can avoid this credit card mistake.
Some credit cards charge a foreign transaction fee for international purchases. These fees can get expensive if you spend a lot of money.
You can plan ahead and avoid excess fees by bringing the right card on your travels. Find out how to avoid this credit card mistake when traveling abroad.
You probably don’t want to carry around a big stack of cash when traveling. Cash is easy to lose. A credit card is a great payment solution and you won’t have to worry about sorting out foreign coins and bills every time you make a purchase.
Watch out for foreign transaction fees
It’s important to remember, not all credit cards have the same fees. You need to think about other fees beyond interest, late payment fees, cash advance fees, and annual fees.
Some credit card issuers also charge foreign transaction fees. These fees are charged when you use your credit card to make international purchases or when your card is used to pay in a different currency.
Most cards that have foreign transaction fees charge a 3% fee. This fee is charged every time you make a purchase abroad. That can add up and result in wasted money if you use your card a lot while traveling internationally.
Here’s an example: If you use a credit card that has foreign transaction fees and spend $1,200 while on vacation in Italy, you’ll pay an extra $36.
Foreign transaction fees will make your next credit card bill more costly than anticipated.
Another thing to remember is you don’t actually have to be physically in another country to worry about foreign transaction fees.
If you’re not traveling in another country, but use a card with these kinds of fees, you may still be charged fees if you make an international purchase online.
How to avoid this credit card mistake
This is one of those credit card mistakes that is easy to make if you’re not careful. But it’s avoidable.
If you’re planning to take an international trip or make an international purchase and want to use a credit card, you should make sure that the card you’re using doesn’t charge foreign transaction fees. You can check with your credit card company or card issuer if you’re unsure.
If the credit card you have doesn’t charge foreign transaction fees, you won’t have to worry when making purchases in a different currency.
The good news is many travel rewards credit cards don’t have these fees. If you’re planning to get a new credit card soon and want to use it to travel abroad, review the credit card terms and fees first.
You now know how to avoid this common credit card mistake. If you bring the right card when traveling internationally, you won’t have to worry about extra costs.
Do you want to earn rewards on your spending? You can earn valuable reward points and miles. Learn more about how to earn credit card rewards.
