Many Australians travel with credit cards. Some cards are better than others for this purpose. It is a good idea to do a little research about which credit cards are the best for traveling. The more research you do the better off you will be when it comes to using your credit cards while traveling and then paying the corresponding bill.
Surcharges and Fees
Some credit card companies charge a foreign bank fee if the issuing bank does not have a local branch in the country you are traveling to. This means that the smaller banks that do not have overseas branches are less likely to be a good choice for your travel card.
Larger, international banks typically offer better credit card options for travelers. These banks have local branches which in most cases will eliminate any surcharges and fees associated with foreign banks.
Exchange Fees
Typically every credit card company will charge your credit card in the foreign currency and then on your bill you will see what the exchange rate used was. The exchange rate may include a hidden surcharge or fee so make sure you speak to the credit card issuing company about this issue before you travel.
Ask the issuing bank how they determine the exchange rate. This will help you better manage your money including deciding when to charge your hotel bill or other larger expenses during your trip.
Foreign Insurance
Some credit cards offer emergency insurance. This can be quite important when you travel. Travelers insurance is a benefit you may want to look into when you are applying for credit cards. The more you travel, the more important this becomes.
Make sure everyone you are traveling with are aware of this insurance including how to use it, relevant telephone numbers, etc. This will prepare everyone for an emergency situation. You should make sure people back home are aware of the insurance as well.
Ask Questions
Contact the credit card company and let them know you are going to travel overseas. Ask them if there are any fees, restrictions, etc that you need to be aware of. It is also a good idea to let them know you are traveling so the fraud alerts do not result in your card being frozen because you are using it overseas.
Ask the credit card company about any emergency insurance and other travel related benefits that your card has and make sure you are fully aware of how to use them. The more information you have upfront the better off you will be.
The bottom line is that traveling with credit cards can and should be easy but you need to do a little advance research and information gathering so you are not surprised after the fact.
Use the credit card or credit cards that offer you the most travel related benefits and offer the best overall rates, etc. Know what you are going to pay for using the card overseas so you can make informed decisions.
