For the lucky holiday makers who are heading overseas, taking the right credit card can make all the difference when it comes to spending fees and charges.
While not all destinations will be credit friendly, there are many that will happily accept your plastic. If you are unsure about the destination you’re heading to, a quick internet search will help you uncover the advice of past travellers.
It is advisable to have several different ways of accessing money with you on your travels so you can never be completely caught out. This could be a mixture of cash, a debit card, travel cards and a credit card.
It is worth noting that credit cards may not be the best option for withdrawing cash overseas as you will be charged a cash advance interest rate. They are, however, great to have as a back up plan and can come with handy perks like travel insurance, concierge services and can earn you points while you travel.
Picking the right credit card for overseas spending can be tricky as there are many different criteria you could look at. If you aren’t sure how your current card stacks up in the travel market it may be worth contacting your lender and asking for a rundown of overseas ATM charges, currency conversion fees and any perks your card may offer.
If you need a new card for your travels, and are at a loss as to where to start, here are some card suggestions. These are merely the tip of the iceberg so if you want to dive further into your credit card search follow the link below.
Good for a Frequent Traveller: ANZ Rewards Travel Adventures Card
This card has the lowest overseas spending fees and foreign exchange fees currently on the market which makes it the perfect travel companion. There are, however, some catches such as the high annual fee and high cash advance rate. If you are doing a lot of travelling, the annual fee might not be a big burden as you will also get travel benefits thrown in such as a return Virgin domestic flight, travel insurance and rental vehicle excess insurance. The cash advance rate is quite high so this card is best used to make credit purchases rather than withdrawing at an ATM.
Good for a Backup Plan: Horizon Credit Union Visa Credit Card
This card has no overseas ATM fees but charges a currency conversion fee of 1.95 per cent. There is, however, no annual fee which means that you can take the card to have with you as a travel backup for no extra cost. If you do get stuck and need to withdraw cash, the cash advance rate is a relatively reasonable 12.95 per cent. This card doesn’t offer any travel perks such as travel insurance so you will have to pay for any extras separately.
Good Cash Advance Rate: BankVic Visa Silver Credit Card
This card has one of the lowest cash advance rates on the market so if you think you may have to withdraw cash through your credit card overseas this card should be a contender. The card has a credit limit of $10,000 so depending on how long your trip is you might like to have an alternate form of credit available just in case. There is no annual fee on the card but there is a nominal overseas ATM fee and a 2 per cent currency conversion fee that cardholders should be aware of.
Good for a Luxury Traveller: Victoria Teachers Mutual Bank Visa Classic Credit Card
Ready to go on the trip of a lifetime? And blow all your cash while you’re there?
This card not only has a small overseas ATM fee and 2 per cent foreign currency conversion fee it has a very high credit limit. If you have the credit rating to be approved for a large limit, then you could be living it up on your overseas trip with this card. Of course, reality will always hit and the money will need to be paid back but the card’s interest rate is below average and there is no annual fee.