Travel Credit Cards

A travel credit card is a credit card with built-in features and perks that can help you to save money when using the card for overseas spending and get more travel benefits out of your card.

Top travel credit card features include money savers like fee-free overseas transactions and $0 overseas ATM fees, and perks like frequent flyer points, travel credits and complimentary travel insurance.

The world of Travel Credit Cards

For many Aussies, travelling can give us a hands on experience to all the world has to offer. But in between tasting different cuisines and taking in scenic locations, you might decide you need a piece of plastic to help you get around and pay for those experiences. If you’re considering picking up a travel credit card, here are some of the things you should know.

How can a travel credit card help me while I travel?

So you’ve decided to pick up a travel credit card for your next holiday, but how exactly can a credit card help you out while you travel? Aside from not having to carry heaps of cash around, a travel credit card can include:

• Social perks - Many travel credit cards come with complimentary concierge services. Not only can they help to book you a table at a top restaurant, they can also give you access to exclusive overseas events and discounted travel services.
• Worldwide acceptance - Since majority of credit cards are linked to Visa, AMEX or Mastercard, you can rest easy knowing that your plastic will be accepted at millions of places around the globe.
• Travel Insurance - many premium and rewards credit cards come with free overseas travel insurance. There is criteria for the insurance to be like paying for some of your prepaid travel expenses on the card but it can save you money from having to take out single trip travel insurance.

Can I use my everyday credit card overseas?

Yes, of course. There is no rule against using your everyday credit card  on your next getaway, but when considering whether to use it or get a travel credit card there are a couple questions to ask yourself, like:

• Does it come with foreign transaction fees? - If you’re planning on taking your everyday credit card overseas, check to see what the fees are on foreign transactions. Depending on the card, these fees can range between 2% - 4% of each transaction. And while this may seem like a minor charge, over a 6 week holiday it adds up. Some travel credit cards do not charge overseas transaction fees so this could save you some money.    
• Will I have to use it at an ATM overseas? - While paying with plastic has become the norm in Australia, some countries around the world still see cash as king. And if you find yourself in a situation where you’ll need to withdraw cash with any credit card, there’s no escaping the hefty cash advance fee. Always use a your ATM / debit card or consider getting a prepaid travel card for those ATM withdrawals.

What are the pros and cons of using a travel credit card?

If you’re thinking that a travel credit card could be the perfect addition to your holiday, it’s still a good idea to weigh up the pros and cons before making a decision.

• Provide up to 55 interest-free days - If you plan on spending big on your holiday, many travel credit cards will offer up to 55 interest-free days just so long as you pay your balance off in full.
• Boost rewards points - If you’re a rewards lover, you’ll be able to earn rewards and frequent flyer points as you spend overseas which means you could be taking off on your next trip sooner.
• Travel perks -  Many cards that are designed to be used overseas will come with certain travel perks, like complimentary travel insurance, lounge access and rewards programs.
• Lower or no transaction fees  - Credit cards that are designed for travellers will generally have lower foreign transaction fees than your standard credit card.

Cons:

• High annual fees - If you’re looking at a rewards credit card just be aware that these cards usually have higher annual fees so to make up for this, you’ll want to make sure you take advantage of all the extra benefits that come with the card like concierge..
• Temptation to spend - Just like back home, with a travel credit card on hand you may tempted you to spend more than you’d initially budgeted. So keep in mind that everything you buy overseas will eventually have to be paid back, so if you’re out souvenir shopping really ask yourself if you need that replica Eiffel Tower statue.