Best Travel Credit Cards - Holiday Spending | moneyfacts.co.uk

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Travel Credit Cards

What are Travel Credit cards?

Travel credit cards allow you to pay for everything while you’re abroad with a lower fee for foreign usage. The best credit card for travel may even charge no fee at all.

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Today's Best Travel Credit Cards

Today's Best Travel Credit Cards

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  • NatWest Credit Card Mastercard
    Cash Fee / Min Charge
    3.00% / £3.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    12.9%
    Additional Information
    No foreign transaction fees
    Rates dependent on credit rating
    Manage your card online
    Go To Provider's Site
    Representative Example: Based on a credit limit of £1200.00 charged at 12.9% variable per annum for purchases. Representative 12.9% APR variable.
  • Royal Bank of Scotland Royal Bank Credit Card Mastercard
    Cash Fee / Min Charge
    3.00% / £3.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    12.9%
    Additional Information
    No foreign transaction fees
    Rates dependent on credit rating
    Manage your card online
    Go To Provider's Site
    Representative Example: Based on a credit limit of £1200.00 charged at 12.9% variable per annum for purchases. Representative 12.9% APR variable.
  • Virgin Money 19 Month All Round Credit Card Mastercard
    Cash Fee / Min Charge
    5.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 2.99%
    APR
    21.9%
    Additional Information
    0% on balance transfers for 19 months
    High rate for cash withdrawals
    Contactless payments up to £45
    Go To Provider's Site
    Representative Example: Based on a credit limit of £1200.00 charged at 21.9% variable per annum for purchases. Representative 21.9% APR variable.
  • Virgin Money 27 Month Balance Transfer Credit Card Mastercard
    Cash Fee / Min Charge
    5.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 2.99%
    APR
    21.9%
    Additional Information
    0% balance transfers for 27 months
    High rate for cash withdrawals
    Contactless payments up to £45
    Go To Provider's Site
    Representative Example: Based on a credit limit of £1200.00 charged at 21.9% variable per annum for purchases. Representative 21.9% APR variable.
  • Virgin Money 29 Month Balance Transfer Credit Card Mastercard
    Cash Fee / Min Charge
    5.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 2.99%
    APR
    21.9%
    Additional Information
    0% balance transfers for 29 months
    High rate for cash withdrawals
    Contactless payments up to £45
    Go To Provider's Site
    Representative Example: Based on a credit limit of £1200.00 charged at 21.9% variable per annum for purchases. Representative 21.9% APR variable.
  • 118 118 Money Guaranteed Rate Card Mastercard
    Cash Fee / Min Charge
    0.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    34.0%
    Additional Information
    No fees payable
    High interest rates
    Credit repair card
    Representative Example: Based on a credit limit of £1200.00 charged at 34.0% variable per annum for purchases. Representative 34.0% APR variable.
  • Barclaycard Rewards Visa
    Cash Fee / Min Charge
    0.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    22.9%
    Additional Information
    No foreign transaction fees
    No zero% introductory balance transfer offer
    Contactless payments up to £45
    Representative Example: Based on a credit limit of £1200.00 charged at 22.9% variable per annum for purchases. Representative 22.9% APR variable.
  • Halifax Clarity Credit Card Mastercard
    Cash Fee / Min Charge
    0.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    19.9%
    Additional Information
    No balance transfer fee
    Rates dependent on credit rating
    No foreign usage fee
    Representative Example: Based on a credit limit of £1200.00 charged at 19.93% variable per annum for purchases. Representative 19.9% APR variable.
  • Metro Bank Personal Credit Card Mastercard
    Cash Fee / Min Charge
    0.00% / £0.00
    Foreign Usage Charges
    EU 0.00%
    World 2.99%
    APR
    14.9%
    Additional Information
    No commission on purchases made in Europe
    Can't pay bill by direct debit
    Apply in branch
    Representative Example: Based on a credit limit of £1200.00 charged at 14.9% variable per annum for purchases. Representative 14.9% APR variable.
  • Zopa Credit Card Visa
    Cash Fee / Min Charge
    0.00% / £3.00
    Foreign Usage Charges
    EU 0.00%
    World 0.00%
    APR
    34.9%
    Additional Information
    No foreign usage fees
    Rates dependent on credit rating
    Contactless payments up to £45
    Representative Example: Based on a credit limit of £1200.00 charged at 34.9% variable per annum for purchases. Representative 34.9% APR variable.
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The best travel credit cards

Michelle Monck

Michelle Monck

Consumer Finance Expert

At a glance

  • Using an ordinary credit or debit card abroad can be expensive – travel credit cards often have lower fees or none at all.
  • Travel credit cards can be used abroad to pay for purchases, services or to obtain cash via ATMs.
  • Safer than taking cash abroad and can be cancelled quickly if lost or stolen.

What is a travel credit card?

With most credit cards, you are warned to avoid using them abroad, because they tend to charge hefty fees for foreign usage. That’s why some providers offer a credit card with little or no charges for using abroad as a welcome alternative for the frequent traveller.

These special travel credit cards allow you to pay for everything while you’re abroad with a lower fee for foreign usage. The best credit card for travel may even charge no fee at all. Of course, there may still be a local cash withdrawal fee to pay if you use an ATM abroad, and you may also be charged for spending on your card in stores, but this would be unavoidable with any card.

You may then ask, why use a card at all? Well, taking cash tends to be a lot less safe, given that it can be lost or stolen. It’s easier to block a credit card than it is to prevent someone from spending your stolen notes. Cards are also useful if you end up spending a bit more than expected, as it means you won’t run out of money so easily.

Additionally, travel credit cards are regulated by the Financial Conduct Authority and offer the same Section 75 protection on purchases between £100 and £30,000 that other UK credit cards do. This means that, thanks to the Consumer Credit Act 1974, you can apply for a refund from your card provider if your purchase turns out to be faulty, so you won’t have to rely solely on a foreign seller giving you your money back.

Note that there may be different percentage charges on purchases and cash withdrawals, with cash withdrawals usually costing more than purchases. You may also be charged differently for going to the EU compared with somewhere further afield, so make sure to check the small print so you know what the charges will be.

There’s also the matter of exchange rates to consider – by using your credit card, you won’t be able to take advantage of the most favourable currency exchange rate available in the months before you travel. Instead, your spending will be converted using the exchange rate at the time of purchase/withdrawal. For this reason, a combination of travel money and a travel credit card might be ideal.

Remember though that you will still have to pay interest on your purchases no matter where you use the card, and unless you find one with an introductory 0% purchase term, you’ll typically be charged interest every time you use the card abroad. That’s why it’s so important to find the best credit card to use abroad and pay off the balance as soon as you can. Consider setting up a standing order so you can be sure that you’ve repaid the balance before the month is up and interest can be charged – although be aware cash withdrawals will not usually benefit from this month’s grace.

What makes travel credit cards different to ordinary credit cards?

Travel credit cards work just like other credit cards. You will need a good credit score to be accepted and get the best possible rate, which may differ from the representative APR, and you will have to make a minimum payment every month once there’s debt on the card. But whereas ‘regular’ credit cards tend to charge high fees for use abroad, the opposite can be said for credit cards for travelling abroad.

Foreign usage charges on these cards tend to be lower, and the best credit cards for travel may even charge nothing at all. Some may offer rewards or a 0% interest term on purchases/balance transfers, while others may be quite basic.

If you’re looking to make purchases in the UK as well as abroad, you might therefore be better off getting both a low interest credit card and a travel card. And if you come back from holiday with a lot more on your travel credit card than you’d expected, you could consider switching the debt over to a 0% balance transfer credit card to minimise the interest charged (though you will likely have to pay a balance transfer fee, so be careful when considering your options).

  • Welcomed wherever your payment service provider is advertised.
  • Often cheaper to use abroad with fewer, if any, fees compared to ordinary credit cards.
  • Safer than taking cash.
  • Come with some protection for your purchases.
  • Just as with ordinary credit cards and debit cards, you may be charged a fee for withdrawing cash through ATMs while abroad.
  • Not all service providers are accepted in some countries.

Should I pay in pounds or euros?

Wherever you are in the world, it’s generally considered to be cheaper to pay in the local currency rather than pounds. So, if you’re in a country that uses the euro, and an ATM or restaurant asks you whether you’d prefer to complete the transaction in pounds or euros, it’s safer to pick euros.

When you choose to pay in euros, your own bank or credit card provider does the currency conversion, whereas if you pay in pounds, the bank behind the ATM or restaurant does the calculation. The conversion rate behind this can be quite a bit higher than the transaction fee that your own bank may charge for paying in euros, making it more expensive to choose sterling in most cases.

Moneyfacts tip

Moneyfacts tip Michelle Monck

Are you credit invisible or have you hit a road bump with your credit? Credit builder cards can help you to rebuild your profile, all you need to do is keep making repayments on time.

Travel credit card versus prepaid travel card

Aside from a regular or travel credit card, or simply using your debit card, there’s another option you might want to consider. Prepaid travel cards, like regular prepaid cards, allow you to add funds from various sources and won’t let you spend more than you put on the card. And like travel credit cards, they offer you competitive charges for using the card abroad.

Unlike a travel credit card, however, prepaid travel cards allow you to choose to convert your pounds into euros or dollars when you add the money to the card, rather than when you use the card abroad, which can allow you to take advantage when the exchange rate is at its best. Some cards will even allow you to put multiple types of currencies on them. You’ll have to check carefully to see if the prepaid travel card you want offers any different currency option.

However, prepaid credit cards also have their downsides compared to travel credit cards. For one, you wouldn’t be able to spend even just a little bit extra – once the prepaid card is ‘empty’, you’ll have to put more money on it before you can use it again, which could be laborious or even impossible while you’re still abroad.

Another potential downside is the charges that may come with these prepaid travel cards. Aside from the foreign exchange fees, which both kinds of cards may or may not have, there may be additional transaction fees, ATM charges and a fee just for getting the card.

Whether you choose a prepaid travel card, a travel credit card, or would rather just risk the possible foreign transaction fees attached to using your regular debit card, always compare the market so you can be sure that you have the best (credit) card to use abroad. You shouldn’t have to add 10% or more to your travel budget just to pay for card charges. And if you do pick a credit card for your travels, try to clear the balance in full as soon as possible to keep your costs further in check.

Compare the best credit cards

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