Gone are the days when people solely relied on cash and traveler checks while going on international trips. Plastic money, especially credit cards, has made it convenient for the wanderlusts to set out for international trips without having to worry about issues such as losing a wallet or facing a cash crunch.
Not only have credit cards made it easy to make purchases, but an individual can also save a lot in the form of cashback, rewards, or direct discounts with chosen partners.
The same credit card that one uses to make daily purchases at home can be used to avail of any service overseas. However, the users are still not aware of the benefits associated with the credit cards and therefore, cannot chalk out the travel expenses and end up complaining about the debt spiral.
Credit cards have been devised to help the users with numerous benefits provided, the users make sure that they can make the most out of it by knowing its proper usage.
When planning an international trip, you can consider using your credit card to save a huge chunk on hotel bookings, airline expenses, and at the same time earn even more rewards. Go through the article to know more about credit cards and to have a handy guide on some important credit card tips so that you can carry all your travel expenses on your credit card.
Some credit card tips to help ace your international trip
It is quite common that when you plan a trip to a foreign land, all your attention will be on the popular destinations you want to visit and the outfits you want to carry. But, one should try to pay equal, if not more, attention to the finances.
Given below are some credit card tips you should make sure to cover while traveling on a credit card.
Choose the right Credit Card
Before you start planning your travel expenses with a credit card, you need to know that all credit cards do not offer the same benefits. When you have more than one credit card, it is important that you go for the one that is accepted in foreign locations.
Other than that, try to opt for a credit card that offers you some extra privilege on international usage. You can also go for the ones that offer you rewards on travel spending categories such as hotels, restaurants, transportation costs, etc.
Figure out the Fees and Charges involved
Other than understanding the late payment charges and the annual fees associated with a credit card, you also need to understand the charges connected to international usage, when traveling abroad. Foreign exchange markup fee is an important factor you need to consider.
It is a fee that is charged on the transaction amount and can range between 1% to 3% or may reach higher. The foreign transaction fee charged by various banks is different. Therefore, one needs to keep the same in mind before initiating any international transactions on a credit card.
Consider your Budget
Outlining a budget is the first thing we need to consider while planning a trip. Though it is natural that one would plan the budget, it becomes difficult when using a credit card.
It especially becomes difficult when you have ample credit card limits at hand. To prevent going overboard with the expenses, you can set a budget in terms of the credit limit of your credit card.
Notify your credit card issuer about your travel plans
When you plan your international trip, get in touch with the credit card company and inform them about your visits.
It is because when your credit card account suddenly displays purchasing thousands of miles, the issuer may decline them as suspicious. Therefore, it is better that you notify the bank about your travel itinerary to make sure that he never feels skeptical and freezes your account. In case, you do not have the time to inform the issuer, you can also perform the process online through your account dashboard.
Keep contact details handy
Though it sounds cliched, it is important that you keep the contact details of your credit card issuer handy while traveling abroad. You must learn to know how to contact them as the toll-free number won’t work when you land in a foreign land.
You can check the official website of the bank to know about the contact details. In case you cannot find the required information, you can call up your bank and ask for an emergency contact number stating the countries you are intending to visit.
Keep some cash
Though credit cards are accepted universally, there can be places where they might not want to accept the credit card as the desired mode of transaction. In cases such as these, having local currency can be a lifesaver. Keep some cash with you to make sure that you do not miss out on any major part of your vacation.
Your visit to a foreign land can be memorable and enjoyable if you do your financial homework well before you get set to go. Therefore, go through the tips given above and ensure that you have a holiday that you will not regret later.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.
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