Is Your Credit Card Accepted In More Places Worldwide

Category: Finance, Credit.

When you compare credit cards, it may profit you to compare what it costs to use them abroad. The balance transfer credit card that has such a great interest rate could sink your finances if you use it abroad.

Not all credit cards are created equal when it comes to overseas holidays. Read on to find out why you should compare credit cards, or even apply for a credit card exclusively for use on your jaunts abroad. The wide acceptance of the major credit cards has been one of their major advertising and selling points for years. Is your credit card accepted in more places worldwide? Whether you re in Borneo, Kurdistan or Gay Paree when you find that perfect memento, you know that you can just whack it on your credit card and tuck it away to take home with you. That �1000 you charged just might have managed to grow to �1100- and that s before they start adding on the interest. If you do, you may be in for a rude surprise when the credit account comes due.

Over the past year or so, all the government financial offices have put out reminders and warnings that using your credit cards abroad could cost you a lot more than you expect. In close second behind the currency exchange rates are fees for using foreign ATMs and high cash advance fees for overseas cash advances. The main culprit is the currency exchange fees, which you may end up paying up to three times on a single purchase- once to your bank, once to the credit card company and once to the merchant who sells you the goods. There are ways to reduce the excess costs of using your credit card abroad. Sit down with the fine print of all your credit card contracts and compare credit cards to see which, charge no currency, if any exchange fees, or limit them. One of the most important ones is to be sure you re using the RIGHT credit card.

Be sure to compare the fees for taking cash advances on your credit or debit cards from overseas ATMs, as well as any other fees that apply on foreign turf. Take the time to compare cards and browse through the credit cards on offer. If you re considering a trip abroad, or if your work or leisure life regularly takes you overseas, you may find it worth your while to apply for a credit card specifically for use outside the UK. Use the general rules you d use to compare credit cards- interest rates, reward points, annual fees- but take into account the particulars of using each credit card overseas, whether on holiday or for business. That s particularly true for business purposes, when you pay off the outstanding balance each month. When you actually compare credit cards that way, you may find that a card with a higher rate of interest- but which charges no currency exchange rate on overseas purchases- makes far more financial sense for you. Other tips to control your credit card expenses overseas include: Avoid overseas cash advances if possible.

If you can, exchange your currency yourself and pay for purchases in cash. The rates on those are often off the edge of the map. Be mindful of merchants who offer the convenience of doing currency exchange themselves. You could end up paying far more for that convenience than expected.

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