No foreign transaction fee credit cards: Tips for tourists
If you travel frequently, a credit card with no foreign transaction fee is the best way to spend your money wisely. Such payment is ideal for tourists who want to avoid additional and unnecessary expenses.
Fees for cash withdrawals and payments for goods or services can be up to 3%. However, there are travel credit cards that also provide a limit within which it is possible to make transactions abroad by the exchange rate. The main thing is to make payments on time every month so that the bank does not charge an interest rate of up to 40%. This is not only unprofitable in terms of costs but can also negatively affect your rating. We advise you to check out the list of the best no foreign transaction fee credit cards to find the best option.
Payment instruments that offer free cash withdrawals
Four financial organizations offer to issue and receive a credit card with no foreign transaction fee. It includes Halifax, Barclaycard, Zopa, and Metro Bank. Customers of these banks can take advantage of favorable offers, especially those who travel abroad frequently. However, we advise you to keep in mind that you may be charged a fee for transactions that are not made in pounds sterling in certain locations.
Halifax
The Halifax Clarity card with no fees abroad offers an annual percentage rate of 22.9% on average. This is also beneficial for cash withdrawals. In addition, the Halifax Clarity card has no fee for transactions that are not made in the national currency (pounds sterling).
Barclaycard
Barclaycard Reward, a credit card with no fees abroad, has an APR of 25.9%. Cardholders can also make cash withdrawals for free. There is no fee for non-UK spending outside the UK that is not made in pounds sterling.
Zopa
Another credit card with no fees abroad is the Zopa credit card. The annual percentage rate is 34.9% on average. There is no fee for cash withdrawals, as well as for transactions made in another currency.
Metro Bank
One of the most prominent credit cards without foreign transaction fees is offered by Metro Bank. Holders of such a payment instrument can use the established limit at an interest rate of 14.9% per annum.
It is worth noting that there is no fee for expenses abroad made in other currencies only within the European Union. Additional costs will be 2.99%. At the same time, there is no fee for cashing out.
No international transaction fee credit card
NatWest, Royal Bank of Scotland, and Aqua are among the financial organizations offering convenient conditions for tourists or those who frequently make business trips.
NatWest Credit Card
This no international transaction fee credit card has an annual percentage rate of 12.9%. No additional costs are charged when making payments for goods and services in other currencies. It should be borne in mind that it is better not to do cash withdrawals abroad, as there will be a fee of 2.5% if you pay no less than three pounds sterling.
Aqua
The Aqua Advance credit card is also fee-free. The financial institution offers to use the product at a rate of 34.9% per annum. There are no additional fees for spending outside the UK. However, cash withdrawals are not profitable, as you will have to pay 5% for each transaction. If the monthly mandatory payment is not made, an additional 44.9% will be charged for such a transaction.
The Royal Bank of Scotland
Holders of The Royal Bank of Scotland credit card can use the card without international transaction fees.. At the same time, there are additional costs for cashing out money outside the UK (2.5% for a minimum of 3 pounds sterling). If the monthly card payment is not made, the bank will also charge a 26.9% fee.
How to choose the best travel credit card with no foreign transaction fee
Before you get a convenient tool for your upcoming trip, it's important to find out about the possibility of avoiding additional costs for using credit funds. When choosing a credit card with no fees abroad, you should pay attention to the following factors.
- Additional benefits related to tourism. In addition to no fees, you can often get discounts and bonuses. For example, ticket cancellation insurance, free baggage check-in, access to the lounge area, etc.
- Annual fee. Foreign fee free credit cards, especially premium ones, may have annual fees, the amount of which varies from bank to bank. Such credit cards often provide favorable benefits and rewards that can cover the amount of the card registration fee.
- Other expenses. Fee-free credit cards abroad offer many benefits. However, banks may charge fees for late payments, cash withdrawals, money transfers, etc.
The key feature when choosing the best credit card without foreign transaction fee is the annual percentage rate. Thus, you need to make sure that you can make the monthly payment on time or you will have to pay the accrued interest, which can be higher for travel cards than for standard products.