When traveling abroad, it's essential to have a credit card that doesn't charge foreign transaction fees. These fees can add up quickly, especially if you're making frequent purchases or using your card frequently during your trip. Choosing the right credit card can save you money and ensure that you don't get hit with unexpected charges. In this article, we will explore which credit cards don't charge foreign transaction fees and provide some insights into how to choose the best one for your needs.
Firstly, let's clarify what a foreign transaction fee is. A foreign transaction fee is a fee charged by banks and credit card companies when you use your card outside of your home country. This fee is typically a percentage of the transaction amount and can range from 1% to 3% or more. Some cards may also charge an additional fee for transactions made in a foreign currency, even if the conversion rate is the same as the domestic rate.
Now, let's look at some of the credit cards that do not charge foreign transaction fees:
1. Capital One QuicksilverOne Cash Rewards Credit Card
Capital One QuicksilverOne Cash Rewards Credit Card offers a unique feature where there are no foreign transaction fees on all purchases, both domestic and international. This card also comes with cash back rewards, which can be redeemed for travel, shopping, dining, or any other purchase. The card has no annual fee and offers a competitive interest rate on balance transfers.
2. Bank of America Travel Rewards Credit Card
The Bank of America Travel Rewards Credit Card does not charge foreign transaction fees on any purchases, including those made abroad. This card offers points that can be redeemed for various travel-related expenses, such as flights, hotels, car rentals, and cruises. It also provides cash back rewards on select categories and offers a sign-up bonus of 25,000 points after spending $1,000 within the first three months.
3. Citi Prestige Card
The Citi Prestige Card is another option that does not charge foreign transaction fees. This card offers a variety of benefits, including extended warranty coverage, price protection, and complimentary access to the Global Lounge Collection. It also comes with a generous welcome offer of 40,000 points after spending $3,000 within the first three months.
4. American Express Blue Cash Everyday Card
The American Express Blue Cash Everyday Card does not charge foreign transaction fees on purchases made abroad. This card offers cash back rewards on every purchase and comes with a low annual fee. It also features fraud protection and zero liability for unauthorized transactions.
5. Chase Sapphire Preferred Card
Chase Sapphire Preferred Card is a top-tier card that offers excellent travel rewards and does not charge foreign transaction fees. It comes with a sign-up bonus of 60,000 points after spending $4,000 within the first three months and offers triple points on travel and dining purchases. Additionally, it includes travel insurance and priority reservations at select restaurants.
It's important to note that while these cards do not charge foreign transaction fees, they may still impose fees for other types of transactions, such as late payments or returned payments. Always read the terms and conditions of the card before applying to ensure you understand all the fees associated with it.
Choosing the Best Credit Card for International Travel
When selecting a credit card for international travel, consider the following factors:
- Foreign Transaction Fees: As mentioned earlier, make sure the card does not charge foreign transaction fees.
- Rewards Program: Look for a card that offers rewards or cash back on travel-related purchases, as this can help offset the cost of your trip.
- Travel Insurance: Some cards offer travel insurance that can cover trip cancellations, lost luggage, and emergency medical expenses.
- Priority Pass Access: If you frequently visit airport lounges, look for a card that offers this benefit.
- Customer Service: Ensure the card issuer has good customer service options, especially if you need assistance while traveling.
- Annual Fee: While some cards offer great benefits, they may come with a high annual fee. Consider whether the benefits outweigh the cost of the annual fee.
In conclusion, choosing a credit card that doesn't charge foreign transaction fees is crucial for travelers who want to avoid unexpected fees. By researching and comparing different cards based on their features and fees, you can find the perfect card to suit your needs and save money on your international trips. Remember to read the terms and conditions thoroughly before applying for any card to avoid any surprises. Happy travels!