Low or no foreign currency fees.
What is a travel credit card?
An international travel credit card typically offers features like low or no currency conversion fees, complimentary overseas travel insurance, and the ability to earn rewards or frequent flyer points. While you may not use all its features, having one can provide peace of mind while travelling.
How to compare travel credit cards
Choosing the right travel credit card depends on your spending habits and travel needs.
Foreign transaction fees
Some cards waive these fees, which can save you up to 3% per transaction when spending in a foreign currency.
Complimentary travel insurance
Many premium travel credit cards include cover for medical emergencies, lost luggage, and trip cancellations. Check the eligibility requirements and exclusions.
Interest rates and annual fees
Compare the ongoing costs to ensure the benefits outweigh the fees, especially if you don't travel frequently.
Rewards program
Look for cards that earn points on travel-related purchases, such as flights, accommodation, and dining.
Airport lounge access
Some cards provide airport lounge passes or priority access at select airports, offering added comfort during long layovers.
Emergency assistance and fraud protection
A card with strong security features can provide peace of mind in case of lost or stolen cards while abroad.
Tips for using your credit card while travelling
Using your credit card overseas can be convenient, but there are a few ways to avoid extra costs and ensure smooth transactions:
- Notify your bank before travelling. Some banks may flag foreign transactions as suspicious unless you inform them in advance.
- Choose the local currency when paying. Avoid dynamic currency conversion (DCC), which often has poor exchange rates and extra fees.
- Carry a backup payment option. A second credit card or travel money card can be useful in case of unexpected issues.
- Use ATMs strategically. Check if your card offers fee-free international ATM withdrawals, and take out larger amounts at once to reduce fees.
- Monitor your account regularly. Keep an eye on transactions to spot any unauthorised charges quickly.
International travel credit card insight from a Credit Card Compare expert
David Boyd, co-founder of Credit Card Compare, shares his perspective on travel credit cards.
"A good travel credit card does more than just save on fees—it can enhance your travel experience. Features like complimentary travel insurance, airport lounge access, and competitive exchange rates make a big difference, especially for frequent travellers. However, not all cards are created equal, so it’s important to compare and find one that aligns with your travel habits."
International travel credit cards vs everyday credit cards
While standard credit cards can be used overseas, international travel credit cards offer specific benefits tailored for travellers.
| Feature | Travel Credit Cards | Everyday Credit Cards |
|---|---|---|
| Foreign transaction fees | Often waived | Usually 2–3% per transaction |
| Travel rewards | Earn points on travel purchases | Limited or general rewards |
| Complimentary travel insurance | Common on premium cards | Rarely included |
| Airport lounge access | Available on select cards | Not typically offered |
| Exchange rate competitiveness | Often better rates | Standard bank rates |
Are travel credit cards worth it?
An international travel credit card can be a valuable card for reducing travel costs and enhancing convenience, but whether it's worth it depends on your spending habits and travel frequency.
If you frequently travel overseas and spend in foreign currencies, a card with no foreign transaction fees, travel insurance, and rewards for travel purchases can provide significant savings. However, if you travel only occasionally, the benefits may not justify the annual fee, and a low-fee everyday credit card might be a better choice.
Before applying, calculate potential savings based on your typical travel expenses and compare different cards to ensure you’re getting the best value.
