Dreaming of exploring the world? Experiencing new cultures, savoring delicious cuisines, and discovering historical sites – these all make travel memorable. But, while planning an international trip, one crucial aspect demands attention: your expenses. And this is where credit cards play a significant role. The right credit card not only provides you with a convenient payment option but also offers various benefits like reward points, cashback, travel insurance, and much more.
In this blog post, we will discuss the best credit cards for international travelers in detail, so you can choose the most suitable card for your journey.
Why are Credit Cards Important for International Travel?
Using a credit card during international travel has several advantages:
- Convenience: Freedom from the hassle of carrying cash. You can withdraw local currency from ATMs worldwide or make direct payments at shops and restaurants.
- Security: If your credit card is lost or stolen, you can block it immediately and minimize your losses. This is not the case with cash.
- Rewards and Cashback: Many credit cards offer reward points or cashback on international spending, which you can use for future travel or other purchases.
- Travel Insurance: Some credit cards offer free travel insurance, which covers things like medical emergencies, lost baggage, and flight delays.
- Foreign Currency Exchange Fees: Some credit cards do not charge foreign currency exchange fees, saving you money on your expenses.
- Credit Score: Using a credit card responsibly helps improve your credit score, which is important for getting loans in the future.
What to Consider When Choosing a Credit Card for International Travel?
When choosing a credit card for international travel, it is important to consider the following:
- Foreign Currency Exchange Fees: This fee is charged on every transaction you make abroad. Choose a card with low or no fees.
- Annual Fee: Some credit cards charge an annual fee. If you don’t travel often, a card with no annual fee may be a better option.
- Reward Points and Cashback: See how many reward points or cashback the card offers on international spending.
- Travel Insurance: Check what travel insurance benefits are included in the card.
- Other Benefits: Some cards offer airport lounge access, free Wi-Fi, and other perks.
- Credit Limit: Choose a card with a sufficient credit limit according to your travel needs.
Best Credit Cards for International Travelers in India
Here is a list of some popular credit cards that can be beneficial for international travelers:
- HDFC Regalia Credit Card: This card comes with many excellent travel benefits, such as airport lounge access, low foreign currency exchange fees, and reward points.
- SBI Card PRIME: This card also offers good reward points and cashback on international spending.
- Axis Bank Miles & More World Credit Card: This card is good for earning air miles, which you can use to book free flight tickets.
- ICICI Bank Sapphiro Credit Card: This card also comes with many travel benefits, such as airport lounge access and travel insurance.
- Standard Chartered Super Value Titanium Credit Card: This card comes with low foreign currency exchange fees.
Note: This list is for illustrative purposes only. The terms and conditions of credit cards may change, so always check the latest information on the respective bank’s website before applying for a card.
Important Tips While Using Credit Cards
- Keep your credit card information secure: Never share your credit card number, CVV number, and PIN with anyone.
- Keep track of your expenses: Regularly check your credit card statement and report any suspicious transactions.
- Pay on time: Pay your credit card bill on time to avoid late fees and interest.
- Be careful when paying in foreign currency: Some credit cards charge extra fees for paying in foreign currency. Avoid such cards or try to pay in local currency.
- Do not spend more than your credit limit: Spending more than your credit limit can negatively impact your credit score.
Frequently Asked Questions
- Q: Do I need a separate credit card for international travel? A: It is not necessary, but a credit card designed for international travel can give you many advantages, such as low foreign currency exchange fees, travel insurance, and reward points.
- Q: Can I use a credit card issued in India abroad? A: Yes, you can use most credit cards abroad, provided they are supported by international payment networks like Visa or Mastercard.
- Q: What is a foreign currency exchange fee? A: This fee is charged on every transaction you make abroad. This fee is usually between 1% and 3%.
- Q: Can I use my credit card to withdraw cash from ATMs abroad? A: Yes, you can use your credit card to withdraw cash from ATMs abroad. However, there may be a fee for withdrawing cash from ATMs.
- Q: How should I keep my credit card information secure? A: You should never share your credit card number, CVV number, and PIN with anyone. You should regularly check your credit card statement and report any suspicious transactions.
- Q: Can using a credit card improve my credit score? A: Yes, using a credit card responsibly can help improve your credit score. Paying on time and not spending more than your credit limit are important for your credit score.