Our Pick Of The Best Travel Credit Cards
The majority of credit and debit cards charge fees when you use them abroad. However, there are some notable exceptions and packing one of these instead means your spending goes on you, not your credit card provider.
We’ve compiled some research (April 2024) into the travel credit card market and listed the best deals we found, below. Being accepted for any of these cards is only possible with a strong credit score. However, your application will be processed through an eligibility checker which won’t leave trace on your credit report.
Best Travel Credit Cards For Overseas Travel
Halifax Clarity
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
23.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
23.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 23.9% p.a. (variable), the representative APR is 23.9% (variable). Credit available subject to status.
The Halifax Clarity card charges zero fees when you use it to make purchases or withdraw cash abroad. But it’s only truly cost-free if you pay off your balance in full. If you allow a balance to roll over from one month into the next, you’ll pay interest at a representative 23.90% APR (variable).
If you use the card to withdraw local currency whilst you’re travelling, you’ll be charged interest on that amount with immediate effect at the same 23.90% APR (variable) – or higher if you opt to take out sterling.
- No foreign transaction fees
- No cash withdrawal fee
- £20 cashback offer
- New and existing customers
- Immediate interest charged on cash withdrawals
Barclaycard Rewards
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
28.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
28.90%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 28.9% p.a. (variable), the representative APR is 28.9% (variable). Credit available subject to status.
The Barclaycard Rewards credit card is free of overseas charges for purchases and ATM withdrawals.
As well as being great for overseas use, the Barclaycard Rewards card actually pays you to spend (albeit at 0.25% which is one penny for every £4) in the form of cashback.
This card has no monthly or annual fee. If there is a balance remaining at the end of the month you’ll be charged a representative 28.90% APR (variable) on it.
The deal comes with some strict eligibility rules. You need to be aged at least 21 to qualify for the card, with four years’ experience handling credit under your belt and an annual income of more than £20,000.
- No foreign transaction fees
- No cash withdrawal fee
- Earn 0.25% cashback
- High representative APR
- Can only hold one Barclaycard
New Day Bip Credit Card
Foreign transaction fee
None
Cash withdrawal fee
n/a
cardless credit account
Representative APR (variable)
29.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 29.90% p.a. (variable), the representative APR is 29.90% (variable). Credit available subject to status.
Foreign transaction fee
None
Cash withdrawal fee
n/a
cardless credit account
Representative APR (variable)
29.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 29.90% p.a. (variable), the representative APR is 29.90% (variable). Credit available subject to status.
The New Day Bip Credit Card allows you to spend overseas without incurring any fees. But as this is a cardless credit account you won’t get a physical credit card and so you can’t make cash withdrawals.
You can make purchases online or link your Bip account to your Apple Pay or Google Pay account for in-person transactions. There are no fees on the account.
The representative APR is high at 29.9% so it may not be the right credit account if you’re likely to hold a balance on it.
- No foreign transaction fees
- Plastic-free account
- Link to Apple Pay or Google Pay
- No card, so can’t withdraw cash
- High APR
NatWest Credit Card
Foreign transaction fee
None
Cash withdrawal fee
3%
(minimum £3)
Representative APR (variable)
12.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 12.9% p.a. (variable), the representative APR is 12.9% (variable). Credit available subject to status.
Foreign transaction fee
None
Cash withdrawal fee
3%
(minimum £3)
Representative APR (variable)
12.9%
Representative Example
At an assumed credit limit of £1,200, at a purchase rate of 12.9% p.a. (variable), the representative APR is 12.9% (variable). Credit available subject to status.
NatWest card offers no fees on non-sterling transactions, so it’s a great travelling companion if you want to use it abroad. But foreign transaction fees are charged on withdrawals from ATMs, so it’s best not to use it for cash machine withdrawals abroad. It has a low standard APR of 12.9%.
- No foreign transaction fees
- Low APR
- Charges applied on cash machine withdrawals overseas
How are the overseas cards ranked?
To arrive at our star ratings, we considered several factors which we based on the following order of importance:
- Fees for overseas use: cards with no foreign transaction fees, no cash withdrawal fees and no interest (if monthly balance is cleared) being given priority
- Representative APR: the interest you might be charged if you fail to clear your balance (varies by applicant)
- Promotional periods and perks: any 0% deal on purchase, balance transfers or money transfers (a useful but secondary purpose to the card).
What’s different about travel credit cards?
A specific travel credit card is designed to help you spend cost-efficiently when you are abroad. That’s because, unlike a standard credit card (or even debit card), you won’t be hit by fees every time you use it.
And these are fees that can otherwise soon mount up.
For example, standard credit cards charge foreign transaction fees for converting the amount spent on the card from the local currency into pounds sterling. This is usually around 2.99%. So if you spent £100, you’d be charged £2.99.
They also usually levy a cash withdrawal fee, which is charged on top of the foreign transaction fee. This means that withdrawing £100 could cost you £5.98 (£2.99 + £2.99), taking both fees into account. The best travel credit cards don’t charge either a foreign transaction or cash withdrawal fee.
However, you can still expect interest to be charged on both types of transaction. And, in the vast majority of cases, interest on cash withdrawals (usually higher) kicks in with immediate effect – even if you settle your bill in full at your next statement date.
Ultimately though, the right travel credit card used in the right way, tends to be the most cost-effective way to spend while abroad.
And while the primary purpose of an overseas credit card is for spending or withdrawing cash overseas, it can still be used as normal back in the UK if you wish.
Other reasons to use a travel credit card
There are several other advantages to using a travel credit card, too. These include the following:
- Purchase protection: Purchases made on a credit card, providing they cost over £100 and up to £30,000, are protected by Section 75 of the Consumer Credit Act even when made abroad. This means if what you purchased is faulty, or the company goes bust, the card provider is equally responsible alongside the retailer to provide a refund
- Competitive exchange rates: Travel credit cards can offer competitive exchange rates when spending overseas
- Cashback and rewards: Some travel credit cards also offer cashback and other incentives such as family travel insurance.
What should I watch out for?
If you are considering applying for a travel credit card, there are also a number of points to be aware of:
- Interest rates: As a rule, travel credit cards don’t offer 0% introductory deals, which means you’ll usually have to pay interest if you are unable to clear your balance in full each month. The APRs advertised are only representative too. This means you could be offered a much higher APR depending on your credit score and personal circumstances. You may even be turned down altogether
- Fees: Although travel credit cards are cheaper than standard credit cards when spending overseas, watch out for annual or monthly fees. You may also be charged if you are late with a monthly payment or miss one altogether
- Dynamic currency conversion: When you pay for a purchase in a shop, the retailer may convert your payment into pounds rather than keeping it in the local currency. Unfortunately, the exchange rates applied usually offer poor value when this happens so you could pay more for your purchase than expected. If you’re given the option, always pay in the local currency.
What alternatives are there?
If your application for a travel credit card is not accepted, you have left it too late to apply, or you would just sooner choose a different way to spend, there are other options.
Choosing to pay by debit card, for example, means you won’t be borrowing on credit so there’s no prospect of paying interest (unless you are in your overdraft). However, it pays to look for a debit card that won’t charge foreign transaction or cash withdrawal fees.
Alternatively, you could consider a prepaid currency card that enables you to load up your card with foreign currency in advance. If you spend what’s on the card, you simply top up again. Many of these cards are cheaper than standard credit cards and offer competitive exchange rates.
You might also want to take some foreign currency with you as cash for times you can’t use plastic. Order it online in advance to get the best rates and carry it safely.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
