How to Manage Credit While Traveling: A Comprehensive Guide
Managing credit during your travels is an important point that can help you not only save money but also protect yourself. Traveling is something that generates great expectations for most people.
However, one of the main dangers travelers face is getting too excited and forgetting or not paying enough attention to how they use their credit. This can often lead to falling victim to fraud or even paying fees they weren’t aware of.
Avoiding Unexpected Fees and Charges
One of the main fees that travelers often pay, usually due to lack of knowledge, is the foreign transaction fee. This is a fee that your credit card may charge for the currency conversions generated by a purchase in another currency.
Not all cards have this fee, but to save money during your trip, it’s important to check the terms and conditions of your card. Most travel credit cards do not charge this fee, so if you don’t have one yet, it’s worth checking out our list of the best travel credit cards.
Protecting Your Credit and Accounts Abroad
To avoid scams and fraud, there are some tips that can help you better manage your credit and avoid stress. Some of them are:
Avoid using public Wi-Fi networks, as they make it easier for malicious individuals to access your data.
Set strong passwords for your accounts, phone, and bank app. This makes it harder for someone to access your information.
It might be a good idea to temporarily deactivate the contactless payment option on your card during your trip. In case of loss or theft, it will be harder for a malicious individual to make purchases with your card using a PIN, which is easier with contactless payments.
Be aware of your credit card’s features. Some cards have a “street mode” or “security mode” that offer additional protection features.
Best Credit Cards for Traveling
If you don’t yet have a travel credit card, check out this brief list:
Chase Sapphire Preferred® Card
- Strengths: Generous sign-up bonus, 2x points on travel and dining, no foreign transaction fees.
- Rewards: 5x points on travel purchases made through Chase, 2x on other travel categories.
Capital One Venture Rewards Credit Card
- Strengths: Earn 2x miles on all purchases, no foreign transaction fees.
- Rewards: Bonus miles that can be used for any airline or hotel.
The Platinum Card® from American Express
- Strengths: Access to over 1,200 airport lounges, generous sign-up bonus, extensive travel benefits.
- Rewards: 5x points on airfare booked directly with airlines.
Citi Premier® Card
- Strengths: 3x points on travel, no foreign transaction fees.
- Rewards: Points can be transferred to multiple airline and hotel loyalty programs.
Bank of America® Travel Rewards Credit Card
- Strengths: No annual fee, 1.5x points on all purchases, no foreign transaction fees.
- Rewards: Flexible points that can be used to cover nearly any travel expense.
With a specialized credit card, your trip will be much smoother and more economical!
Avoiding Credit Card Debt on Vacation
Manage Credit Through Travel Budget
Another problem beyond fraud is spending more than you can afford on a trip. Although credit cards are very helpful in many day-to-day situations, you must be cautious.
Credit cards, when not used wisely, can give you a false sense of having more money than you actually do.
This can be avoided by planning in advance how much you want to spend on your trip. Create a budget that you are willing to stick to for each expense. Follow it closely during your trip to avoid complications or regrets.
Using Credit for Big Purchases Only
Additionally, a smart alternative is to use your credit card only for larger purchases. This helps you avoid issues like card cloning and other types of fraud. This way, you can enjoy a stress-free trip and create countless pleasant memories!
If you’d like to know more about how to obtain or activate the travel insurance on your credit card, read also:
