Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.
Jump to
- Best travel credit cards
- What is a travel credit card?
- How do travel credit cards work?
- How to choose a travel credit card
- Advantages of travel credit cards
- Disadvantages of travel credit cards
- Am I eligible for a travel credit card?
- How to apply for travel credit cards
- How to use a travel credit card
- Is a travel credit card right for me?
- What are the alternatives to travel credit cards?
- Travel credit cards frequently asked questions
Travel credit cards are designed to be used when travelling overseas, or shopping online with companies based outside of the UK. Unlike most other credit and debit cards, paying with a travel credit card means you’re unlikely to pay foreign transaction fees and other charges, and you will usually get the best exchange rate. This can make it one of the most cost-effective ways to spend abroad – as long as you clear your balance as soon as possible when you get back home to avoid paying hefty interest rates.
Best travel credit cards
We’ve listed our pick of the best travel credit cards below, ordered by the cost of making foreign cash withdrawals and card purchases, followed by APR. This includes the cost of any interest that may be applied to the balance over one month, based on a cash withdrawal of £50 and £100 of spending on the credit card*.
Provider | Representative APR | Benefits & Rewards | Cost of using the card overseas* | |
|---|---|---|---|---|
 | 28.9% | 0.25% cashback on everyday spending | £0 | |
 | 49% | n/a | £0 | |
 | 28.90% | n/a | £0.90 | |
 | 29.90% | n/a | £1.10 | |
 | 32.9% | Earn points with every purchase which can be spent on a range of experiences | £1.20 |
This table is checked and updated regularly. If a brand has more than one product that makes our table only the best that brand offers is shown. We aim to provide accurate information but prices, terms and conditions of products and offers can change, so double-check first. Credit card data is provided by Fairer Finance.
Partner Spotlight Compare Credit Cards
NerdWallet has partnered with Monevo. Compare credit cards without impacting your credit score.
A limited number of credit cards are included in this comparison service, others are available in the market. Some of the results shown will confirm your eligibility, while others may require further checks.
What is a travel credit card?
Although you can use most types of credit and debit cards to spend overseas, you may find that many will charge you for doing so. If you’re a regular traveller – or even if you rely on your credit card during your annual summer holiday – these charges can add up.
Charges often include:
- A foreign transaction fee of around 3%.
- A flat fee of up to £1.50 for every transaction.
- A cash withdrawal fee of around 2.5% (or a minimum of about £3).
- A higher rate of interest for withdrawing local currency at an ATM.
A travel credit card is designed to help you avoid, or at least minimise, these charges. Travel credit card providers don’t usually charge you to use them abroad, and you will also receive a more favourable exchange rate. Some cards offer fee-free ATM withdrawals when you’re overseas, although most will require you to pay a higher rate of interest from the day you make the withdrawal, so it’s almost always cheaper to pay with your card instead of cash, when you can.
» MORE: Make your holiday money go further
How do travel credit cards work?
A travel credit card works just like any other type of credit card: you use it to spend in-store or online up to your credit limit. Each month you will receive a statement telling you how much you owe, and the minimum payment that you need to pay by a set date.
While some other credit cards, such as 0% purchase credit cards, are designed to help you spread the cost of an expensive purchase over several months, it’s best to clear the balance on your travel credit card as soon as you can – ideally before any interest is charged. This is because this type of card often has a high APR and rarely offers any kind of introductory offer, so you may end up paying more in interest than you would have paid in fees and charges unless you pay it off promptly.
If you need more time to clear the balance you could consider transferring your debt to a 0% balance transfer card instead.
» MORE: How do credit cards work?
How to choose a travel credit card
There are a few things to consider when choosing a travel credit card:
- What’s the APR? This is the amount of interest you’ll pay if you don’t repay your balance, so pay careful attention to this if you don’t expect to pay off your debt straight after your trip.
- Are there any fees? The main reason for taking out a travel credit card is to avoid foreign transaction and purchase fees, so double check if it’s free to spend overseas, and if you’ll be charged for withdrawing cash.
- Will you get any perks or rewards? Some providers offer extra perks such as rewards points, cashback, and airport security fast track. These can be a nice bonus, but as with all rewards credit cards and cashback credit cards, they’re only worthwhile if you will use them.
- Is there an introductory offer? Some cards offer a low interest or interest-free introductory period. If this applies, check when it ends and if there are any exclusions.
» MORE: Do I need a credit card?
Advantages of travel credit cards
The main advantages of travel credit cards are:
- Using a travel credit card when you spend overseas (or buy from a foreign website) could save you money compared to using a debit card or a regular credit card. This is because travel credit card providers don’t charge you extra fees when you use your card abroad.
- You will have Section 75 protection when you pay for goods or services that cost between £100 and £30,000. So you can claim back what you spent if there’s an issue with your purchase.
- Using a travel credit card is more secure than carrying cash when you’re on holiday. Unlike cash, you can cancel a credit card if it’s lost or stolen, so you’re less likely to end up out of pocket.
- Some providers offer perks such as cashback or rewards, so you may be rewarded for your spending.
Disadvantages of travel credit cards
Travel credit cards also have some disadvantages:
- Compared to other credit cards, such as 0% purchase cards, travel credit cards can be an expensive way to borrow as they tend to have a higher APR. For this reason, aim to clear your balance straight after your trip so that you don’t have to pay interest.
- Even if you have a specialist travel credit card, you may be charged for withdrawing cash. Even if you’re not charged for the transaction, you can expect to pay a higher rate of interest for a cash advance than you would for spending with your card. Some ATMs will also charge you for a withdrawal, even if your card provider doesn’t.
- Unless you choose to pay in the local currency (rather than in pounds) when asked at shops and restaurants, you won’t get the best exchange rate. When you pay in pounds the retailer, rather than the card provider, will do the conversion for you, resulting in a less favourable exchange rate.
- A travel credit card will only save you money if you’re careful not to overspend and clear your balance soon after your trip. If it’s likely that you won’t be able to do this, think twice about getting a travel credit card and consider another option, such as a prepaid credit card, which could help you to budget for your trip, or a 0% interest purchase card, which will give you more time to clear your debt.
Am I eligible for a travel credit card?
If you have a good credit score, you will probably be eligible for a travel credit card. Some providers may also offer them to people with less than perfect scores, although you may find that you are offered a higher APR and a lower credit limit.
Before you apply, don’t forget to use an eligibility checker first. This will ensure that you meet all the basic requirements, including the following:
- You’re over 18.
- You’re a UK resident.
- You have a permanent address.
- You have a minimum annual income.
- You haven’t been declared bankrupt or have any recent individual voluntary agreements.
- (IVAs) or County Court Judgements (CCJs).
It’s also helpful to check your credit score. Lenders refer to this three- or four-digit number when deciding whether to offer you credit. It’s influenced by a few different factors, but missed or late payments, defaults or high use of credit can all hurt your score. When you check your score regularly it can allow you to take steps to improve it, and pick up on errors that can be corrected.
Check your score for free with credit reference agencies like Experian and Equifax, or via platforms like ClearScore and Credit Karma.
How to apply for travel credit cards
It’s quick and easy to apply for a credit card online but, if you prefer, you can sometimes apply in person at a branch of the relevant bank.
Regardless of how you apply, the provider will run a credit check, so you will need to share some information including:
- Your contact details.
- Your address (including all addresses for the last three years).
- Your bank account details.
- Your income.
You may get an instant decision, especially if you apply online, but don’t be surprised if you have to wait a few days to find out if your application has been approved.
The next step is to sign a credit agreement. If you’ve applied online you can usually do this digitally, otherwise you will be sent paperwork to sign and return. Before you sign, check your credit limit, APR, any fees and charges and the minimum monthly payment as might have changed since you applied. At this point you can still walk away with no obligation – and even if you sign you have a 14-day cooling-off period where you can cancel the agreement without explaining why. However, you will need to repay any money you have borrowed, plus any interest due.
If your application isn’t successful, resist the temptation to apply again right away. Each application leaves a mark on your credit report, and making several in a short period of time can give lenders the impression that you’re experiencing financial difficulties, which could make it harder for you to get credit in the future.
Instead, check your credit score and focus on things you can do to improve your credit score – and remember to use an eligibility checker before you make your next application.
How to use a travel credit card
The following tips will help you to make the most of your travel credit card:
- Save your travel credit card for trips abroad, or shopping on foreign websites. This should save you money on transaction charges and currency conversion. Resist the temptation to use it for everyday purchases in the UK, as this type of card usually has a higher APR than other cards, making it an expensive way to borrow.
- When asked if you would like to pay in pounds or the local currency, always choose the local currency. This means that your card provider handles the currency conversion rather than the retailer, which means you will get a better exchange rate.
- Clear your balance as soon as possible after your trip. Ideally, pay off your credit card as soon as you get home. This means you’re unlikely to pay any interest on what you’ve borrowed. If you don’t do this, you could end up paying more in interest than you have saved on foreign transaction fees and other charges.
Ceri Roberts, Lead Writer and Credit Cards Expert at NerdWallet
What Our Nerds Say
“Travel credit cards aren’t just for holidays. Sometimes I spot on my credit card statement that I’ve been charged a foreign transaction fee when I shop on a foreign website, even when I’ve paid in pounds. Not all providers add these fees but, if yours does, it’s easy to avoid them simply by using a travel credit card to make your purchase – just don’t forget to pay it off before you’re charged interest on the transaction.”
Is a travel credit card right for me?
If you travel regularly – or even if you just travel abroad once a year – a travel credit card could save you some money on foreign transaction fees and charges, and give you the added security that comes with spending on a card rather than carrying cash.
However, applying for a new credit card isn’t a decision to be taken lightly, as you will still be borrowing money – and your application will leave a mark on your report regardless of whether or not your application is successful.
It’s also important to consider whether you will be able to clear your balance soon after your trip. If not, any savings you make will be quickly cancelled out by interest.
If you’re already struggling financially, and are tempted to apply for a travel credit card because it seems like a good way to access some extra cash before your holiday, this could quickly make your situation worse as your debt will increase.
Before you apply, consider all your options, including seeking free debt help from charities such as:
What are the alternatives to travel credit cards?
Some banks offer debit cards with fee-free spending overseas, sometimes up to a set limit. Many offer additional perks such as cashback and rewards and, unlike credit cards, you won’t pay interest on what you spend as you’re using your own money – unless you dip into your overdraft.
Alternatively, you could consider a prepaid credit card. These need to be topped up before you travel, so you’re spending your own money rather than borrowing, and some give you the option to spend in various different currencies.
These prepaid cards can be a good way to manage your holiday budget as it’s impossible to overspend unless you load more money onto the card, and some even allow you to lock in the exchange rate before you travel, so you’ll know exactly how much you have to spend.
» COMPARE: Prepaid credit cards
Travel credit cards frequently asked questions
A travel credit card allows you to borrow money from the card provider and spend it overseas, without paying any additional transaction fees or charges. However, you will be charged interest on what you spend unless you clear your balance in full before the payment due date. You also have the added benefit of purchase protection under Section 75 of the Consumer Credit Act 1974, which means you can claim back what you spent if there’s a problem with your purchase.
A travel debit card is connected to your bank account, so you’re spending your own money rather than borrowing – unless you use an overdraft facility. Some banks offer fee-free spending abroad when you use your regular debit card, although this may only be available up to a certain limit, and may not cover all types of transactions, such as ATM withdrawals.
A prepaid travel card works just like a debit card, but it’s not connected to your bank account. Instead, you load it up with money before your trip then you can use it to pay in the same way that you would use your regular debit or credit card.
Some prepaid travel cards allow you to load multiple currencies onto a single card and allow you to lock the exchange rate before you travel. Others require you to top up with pounds, which will be converted into the local currency when you spend.
These cards have the added advantage of helping you to budget for your trip, and as you will be spending your own money rather than borrowing you don’t need to pass a credit check when you apply, which can be helpful if you have a bad credit score.
Yes, you can use a travel credit card to withdraw cash from an ATM but it can still be an unnecessarily expensive way of funding your holiday. Unlike many other types of credit or debit cards, there’s usually no charge for doing this, but some ATMs will apply a charge, and you can expect to be charged interest – often at a higher rate – from the day you make the withdrawal.
You’re generally better off paying with your card where possible, and only withdrawing cash using a debit or prepaid card.
You can expect to get the best exchange rates when you spend with a travel credit card because you will be charged at the Visa, Mastercard or American Express wholesale rate, depending on your provider. This rate isn’t fixed and is subject to change, but you will typically get a better rate than you would get at your bank or foreign currency exchange.
If you would prefer to fix your exchange rate before you travel, consider getting a prepaid travel card instead.
Dynamic currency conversion (DCC) is the process whereby a store or ATM gives you the choice of paying in pounds sterling rather than the local currency. It’s fairly common to be asked which you would prefer at the point of sale – and it’s tempting to opt for pounds as this can make it easier to keep track of what you’re spending.
However, it’s always best to pay in the local currency as this means the card provider rather than the retailer will handle the conversion, which usually means you will get a better rate. Also, there is usually an additional fee to process DCC transactions, so it can become an expensive way to spend – especially if you’re also paying foreign transaction fees and purchase fees.
For this reason, when given the choice, always choose to pay in the local currency.
There’s a chance that your credit card could be blocked if you use it abroad, simply because your change of location or spending habits could trigger extra security measures that are designed to protect you from fraud.
If this happens, the block can be easily removed if you call your bank or contact them via in-app chat.
Although this was a standard thing to do in the past, it’s not usually required these days.
However, some banks and providers do have functionality built into their app which makes it easy to notify them of your travel plans. Others will simply send you a notification when you make your first overseas transaction on a trip, so you’ll have the reassurance that everything is working as it should.
The foreign transaction fee, also known as the non-sterling transaction fee, is a charge which your bank or card provider may apply when you use your debit or credit card in a different country, or when shopping on a foreign website. This is typically a percentage of the amount you spend, up to a maximum of around £3. You may also be charged a purchase fee of around 50p to £1.50 each time you use your card abroad, plus a cash fee if you withdraw cash of around 2.5% of the amount withdrawn.
It’s possible to avoid these fees by using a dedicated travel credit or debit card – so don’t forget to check which fees apply to your usual card before you travel.
If you’re given the option, it’s usually cheaper to pay in the local currency. This means that your card provider, rather than the retailer, will handle the currency conversion – so you will almost certainly get a better exchange rate.
Image source: Getty Images
About the Author
Dive even deeper
Do I Need a Credit Card?
Compare Best Cashback Credit Cards in the UK
