Credit Cards Overseas

Using your Credit Cards Overseas

One of the biggest hassles of travelling overseas is money. You need to work out how much to change, what currency to change it into, what the exchange rate is, whether to take it as cash or traveller's cheques, etc. This is where the convenience of the credit card can come to the rescue. However, there are a couple of things you need to bear in mind when using your credit card abroad.

First of all, many credit card companies will charge you a "foreign usage fee". This fee is supposed to cover the cost of converting from one currency to another and is usually in the region of 2.5% per transaction.

So, if you were to make a £100 purchase on your card abroad, you would be charged an additional fee of £2.50. This may not seem like much, but if you're using your card a lot these fees can quickly add up.

You might also be tempted to use your card to withdraw some cash at an overseas ATM. Again, you will be charged a fee for this. BUT, not only will you face an upfront withdrawal fee, but you'll also be charged interest from the date of the transaction, even if you repay your next statement in full. (It is worth noting that this "cash withdrawal fee" is also charged if you use your credit card to withdraw cash in the UK.)

Fortunately, these days there is a credit card to meet almost every need. So, if you're planning to make a lot of purchases while abroad, look for a card that offers 0% commission on overseas transactions, such as the Post Office Credit Card.

Credit card types:

• 0% balance transfer credit cards
• 0% purchase credit cards
• Low standard interest rate cards
• Cash back, reward and affinity credit cards
• Gold/Platinum credit cards
• "Bad credit" credit cards
• Prepaid/Pay-As-You-Go Cards

Please note: TheMoneyFactor.co.uk makes every effort to ensure that all our information and the results from our calculators are accurate and current. However, we cannot guarantee 100% accuracy and cannot be held liable for any errors.

Nothing within TheMoneyFactor.co.uk website is, or shall be deemed to constitute, financial or other advice or a recommendation to purchase any product or service. Any and all information provided within TheMoneyFactor.co.uk website is for general information purposes only.

TheMoneyFactor.co.uk advises that you always check with the finance service provider before signing any agreement or purchasing any product.