Related Which is the best travel credit cardYouv

first_img RelatedWhich is the best travel credit card?You’ve booked your flights, reserved a hotel, but how are you planning to pay for all those other expenses once you get there? If you’re opting for plastic then you’ll need to read this. We’ve got all the info on the best travel credit cards to take on holiday, including…Holidaymakers face over £100 in ATM chargesHolidaymakers face over £100 in ATM charges10 ways to get the best deal on your travel moneyYou’ve saved money on flights and your hotel room – now get the most bang for your buck, Euro, or baht! Our guest financial expert Claire Connachan shares 10 insider tips on how you can get the best exchange rate on your travel money. There are several advantages to using a credit card when abroad. Choose the right one and it can be the cheapest way to spend.They also tend to offer a level of protection on the goods or services you buy.However, there are also some pitfalls to be aware of before you shop abroad with your plastic.Credit Cards Abroad: The GoodLoss, Theft and DamageUsually your credit card will have some sort of cover to protect you if your new purchases go missing or are broken. Levels of protection do vary though, so check the small print.A Worldwide ServiceCredit cards are accepted virtually everywhere in the world and even if you don’t speak the local language, the chances are, your plastic will.Ease of ReplacementAll card providers offer help lines if you lose your card whilst away, and a replacement can be sent to you wherever you are.0% APRMany cards will offer a “free” purchase window of 6-9 months for new customers, so take advantage of this on holiday and pay the money back at your leisure – before the time limit is up of course.Credit Cards Aboard: The BadForeign Currency Loading FeesThis is the charge that your credit card company will add to your bill if you use your card abroad. Usually it is 2.75% so a £200 purchase will actually cost you £205.50 instead. Dynamic Currency Conversion RateThis piece of jargon refers to whether or not your payment is in sterling or local currency. If, when presented with your bill, you choose to pay in sterling, then you could be charged a conversion rate by the restaurant or retailer (instead of the loading fee) which is far less favourable than what you might be charged in a bank.For example, if your meal is 135 Euros and you decide to pay in sterling, at a fair exchange rate, you might pay (EUR135 / 1.154*) £116.97 but if the retailer decides to skew things in his or her favour, the same bill could be as much as 4% more – or in this example, £121.64 instead.Unscrupulous outfits sometimes insist that you can only pay in sterling and you then sign the transaction slip confirming you have been given the choice so as to comply with terms and conditions laid out by the credit card companies. If you choose to pay in the local currency (which is the best idea), then you’ll be charged the loading fees by the credit card company.Cash WithdrawalsAvoid using your credit card at foreign ATMs if at all possible. Credit card companies will generally charge you between 2.5% and 3% for this with a minimum withdrawal fee of £2.50 to £3. Then, to add insult to injury, cash is usually charged at a higher rate of interest than standard purchases and begins as soon as it comes out of the ATM.Lastly, their final pound of flesh is taken if the card company operates a payment hierarchy system meaning that some providers leave payment of cash withdrawals till last so you will be paying interest for longer.See also: Best Debit Cards to use abroadReturnOne wayMulti-cityFromAdd nearby airports ToAdd nearby airportsDepart14/08/2019Return21/08/2019Cabin Class & Travellers1 adult, EconomyDirect flights onlySearch flights Map The good and the bad when it comes to using credit cards abroadlast_img read more