Traveling and your money is a very important topic that should be addressed before you travel, especially when it comes to credit cards.
When you travel outside the U.S. you have to consider what cards are widely accepted and which ones are best appropriate for your trip.
The reason you must consider this is based on several factors. At the top of the list is cost but you also want to consider security and rewards.
First look at the cards you already have and verify what it will cost to use them internationally.
Do they charge foreign transaction fees? This can be 3% on top of every transaction you make. If yours charges a foreign transaction fee, shop for another card that doesn’t.
In comparing cards for the most cost effective one, also consider if there is an annual fee, which may or may not be worth it. I don’t mind paying an annual fee if the benefits out way the cost. For example, American Express charges a fee, however, they have airport lounge privileges, status upgrades for car rental companies and hotels and they have a rewards program for a variety of products and services.
Certainly, you’ll want to be able to actually use your card overseas. Is it widely accepted? Well, MasterCard and Visa are more widely accepted than American Express and Discover. That being said I always carry my Amex for large purchases and/or when I want hassle free assurance. In my opinion, AMEX offers the best customer assurance and protection.
How secure is your card? While security is important at home and abroad, tourists are preyed upon more frequently. Your card should have a chip and pin security feature, if not at least chip and signature. If you’re not sure, ask your issuing bank.
What are your rewards? From loyalty points to cash rebates and of course travel benefits, credit card companies offer a variety, they vary by card and when they are offering specials and bonuses, take advantage.
Check them all out ahead of time to save time and have peace of mind.
When it comes to your cash, cash is king. Always bring enough with you in small denominations for exchange and purchases. It’s best to get new cash to take with you. This may sound funny but some financial institutes in some countries won’t exchange old money.
Leave Travelers Cheques alone. They are becoming a thing of the past and it can be difficult to find a bank or currency exchange that accepts them.
You don’t need to bring a ton of cash, for one main reason, when it’s gone it’s gone. Bring what you feel you will need for small purchases. If you run out or need more, you can typically find an ATM.
Don’t exchange large amounts of money because if you don’t use it all, you’ll loose on the sell back. Exchange enough for a few days and as you go.
Happy trails and happy spending!
Ja’Vonne, The Traveling Culturati