The best cards to take on holiday

Category: Credit cards
Date: 6/9/2011

Taking a credit, debit or prepaid card on holiday is much safer than taking cash. But while it's safer, it can sometimes work out more expensive if you haven't been selective about which flexible friend to take.

A good travel card will charge no extra fees for you making purchases abroad. Some may not charge you extra for withdrawing cash either, although you shouldn't withdraw cash on a credit card unless you've got no other option.

Take a MasterCard and a Visa

The two biggest card types, MasterCard and Visa, may be more widely accepted in certain areas than others. Traditionally it's the case that MasterCard is accepted widely in Europe, with Visa being more acceptable worldwide.

So in order to increase your options, it's a good idea to carry both a Visa and a MasterCard – particularly if you're travelling further afield than Europe.

5 reasons not to withdraw cash on your credit card

Withdrawing cash from a credit card is very expensive – here are 5 reasons why you shouldn't if you can avoid it:

• Interest is charged from day one, there's no interest free 'grace' period like there is on purchases.
• The interest rate on cash is also much higher than that for purchases, around 27.9% - even on traveller friendly cards.
• There can be a cash withdrawal fee, typically 3.00% of the amount withdrawn.
• There may be a foreign usage charge as well – this can be a further 2.99% of the amount you withdraw.
• Foreign banks may charge you for using their cash machines as well. However, if you are a customer of an international bank such as HSBC or Santander, using their cash machines will mean you won't be charged.

For example…

You take out £100 using a credit card whilst you are on holiday. You could be charged:

• £2.37 (one month's interest at 27.9%)
• £3.00 cash withdrawal fee
• £2.99 for using your cash abroad.

This makes a total of £8.36 (to be nice we've assumed that the foreign bank won't charge you for using their cash machine).

And, of course if you don't repay the amount within the first month, the interest charges will continue.

Prepaid cards

Don't want to take your credit card or debit card away with you? Prefer to stay in control of your budget? A prepaid card might be for you.

Prepaid cards work by you loading the card with credit before you go (or even online while you are away) in much the same way as a pay as you go mobile phone. You can then spend up to the credit you've put onto the card – great if you need to be strict on your budget or don't fancy taking a new credit card or switching current account, purely for the travel friendly offers.

One downside to prepaid cards is that they may not be available in the currency of the country you are travelling to (as opposed to a credit or debit card which has no such restriction), so be sure to take this into consideration when choosing your card.

PREPAID CARDS
Escape Travel Money Prepaid MasterCard
	Available in either € Euros or $ US Dollars Free purchases made in your card currency Free ATM cash withdrawals made in your card currency One off £9.99 fee to issue the card
Virgin Money Prepaid Travel VISA
	Available in either Euros or US Dollars No fee for purchases made in your card currency (3.5% for transaction or cash withdrawal not in your card currency) Cash withdrawal fee (card currency) €1.50 / $2.00 Free emergency card

The best credit cards and debit cards to take on holiday

	Transaction charges	Conversion charges	Other features
CREDIT CARDS
Santander Zero Credit Card MasterCard
	None	None	19.9% APR 0% on balance transfers for 6 months 0% on purchases for 6 months No foreign exchange fees - perfect for travel
Representative Example: Based on a credit limit of £1,200 charged at 19.9% variable per annum for purchases. Representative 19.9% APR variable.
Post Office Platinum MasterCard
	None	None	16.9% APR 0% on balance transfers for 14 months 0% on purchases for 3 months 0% commission on purchases overseas
Representative Example: Based on a credit limit of £1,200 charged at 16.9% variable per annum for purchases. Representative 16.9% APR variable.
SAGA Over 50's Platinum VISA
	None	None	11.9% APR 0% on balance transfers for 9 months 0% on purchases for 9 months 0% foreign currency fee A secure online account managment tool You must be 50 or over to take out this card
Representative Example: Based on a credit limit of £1,200 charged at 11.9% variable per annum for purchases. Representative 11.9% APR variable.
Nationwide BS Credit Card VISA
	None in Europe/ 1.00% outside Europe	None in Europe/ 1.00% outside Europe	15.9% APR 0% on balance transfers for 17 months 0% on purchases for 3 months Commission free foreign transactions until 31.7.11 After that you 'earn' commission free purchases abroad by spending on the card throughout the year (£5 spent in sterling will earn £1 commission-free purchases abroad)
Representative Example: Based on a credit limit of £1,200 charged at 15.9% variable per annum for purchases. Representative 15.9% APR variable.
DEBIT CARDS
Norwich and Peterbourough BS Gold Classic Current Account
	None	None	Authorised overdraft 17.9% EAR You need to pay in £500 per month Online banking service Transferred authorised overdrafts charged at 0% for 6 months
This is a current account that offers an overdraft facility. Representative Example: Based on overdraft limit of £500 charged at 17.9% EAR Variable. Overdraft fee of £5.00 per month applies.

Find the best credit card rates - Compare credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at anytime.