How to save money when using a credit card while travelling: 4 tips
When travelling abroad, cash may not always be the best choice. A wallet full of money can put you in danger.
A credit card can solve many problems. However, you should keep in mind the rules that will help you save money, The Insider writes.
1. Call your credit card company and tell them when and where you are travelling.
By letting your card issuer know when and where you will be travelling, you will reduce the likelihood that your transactions will be flagged as unusual activity and declined. Foreign transactions may even result in your card company suspending your account due to the risk of fraud.
When travelling abroad, many people put everything on one credit card. This could be the credit card you use to book flights, hotels, car rentals, etc. Now imagine that credit card is suspended due to suspected fraud during your trip.
2. Consider using multiple credit cards.
When travelling internationally, it's important to be prepared for anything that might happen. Instead of relying on a single credit card, consider taking multiple cards on your trip. That way, if your bags are lost or stolen, or your credit card is suspended, you'll have another card for the rest of your trip.
3. Use a credit card with no foreign transaction fees.
International travel can be quite expensive when you add up the cost of hotel accommodation, food and transport. Now imagine having to pay an additional fee, often 3%, on top of all these costs just for using your credit card.
Many credit cards charge foreign transaction fees. But these fees can be avoided by using the right credit card. There are many credit cards with no foreign transaction fees - choosing one of these can make your trip cheaper by avoiding unnecessary charges.
4. Plan ahead if you are going to use a debit card.
Withdrawing money from an ATM in a foreign country usually incurs a fee from both the local bank that owns the ATM and your home bank. So taking the time to research when, where and how you will be charged can save you a lot of money. Some debit card issuers don't charge foreign ATM fees, and some may even reimburse these fees. Talk to your bank representative in advance to get help reducing the fees you may be charged.
