Benefits of Using Credit Cards When Traveling Overseas

Credit cards are essential to us for most of our travel expenditures. We always bring along at a minimum two credit cards (just in case one gets blocked for security reasons), and a debit card if we ever need to withdraw cash from an ATM. When you start packing for your next trip, be sure to bring some of your credit cards because here are some reasons why you should be using them when you travel.

Standard Benefits of Using Credit Cards

#1 Safety and Security

Although it is generally wise to have a little bit of cash with you when traveling, you are less likely to unknowingly flaunt your wallet’s contents when you pay with a credit card. Imagine having to count your money in full view of those around you. There’s real danger especially in big cities. What if someone steals your wallet or you simply lost it? With credit cards, you can simply call your bank and report the incident. Any purchases made with the stolen card will be declined, and a replacement card will be sent to you via mail.

#2 Convenience

Paying with credit cards is fast, efficient, and extremely convenient. It is so much easier to swipe or insert your card than to pay with cash and deal with counting change all the time, especially if you’re unfamiliar with the foreign currency you’re using.

#3 Cash Back

When you’re traveling and spending money, why not reward yourself and get some of your hard earned cash back? It’s like getting money back on purchases that you already planned on making anyway. It’s a great way to earn passive income and save up for your next trip. One thing you need to remember is that cash back credit cards usually have high interest rates and require excellent credit scores. If you plan on taking advantage of their rewards program, make sure you pay off the entire balance at the end of the billing cycle or the interest it accrues totally outweighs whatever cash back you earned.

#4 Foreign Currency Conversion

If you think you’re getting a better exchange rate using cash, think again. Most currency exchange companies charge you a standard service fee in addition to their already low buying rate. Airport currency exchange adds convenience into the mix but exchange rates are somewhat nominal. Credit cards are great at keeping it simple and convenient with exchange rates. However, make sure your credit card company does not charge foreign transaction fees. Otherwise, these fees can add up as well.

Premium Credit Card Benefits

#1 Complimentary Airport Lounge Access

Are you expecting a lengthy layover in between flights? To a traveler, airport lounges are travel oases brimming with utmost luxury and bliss. Light meal, relaxing lounge area, or even a hot shower to wash the stress away. A place to chill while waiting to board your next flight. Perfect, right? Up until you’re faced with a $50 entrance fee.

If you’re a frequent traveler, it might be worth getting these premium credit cards that offer complimentary airport lounge access when you travel.
a. Chase Sapphire Reserve Card
b. The Platinum Card from American Express
c. United MileagePlus Club Card by Chase

#2 Earn Airline Miles

Airline Miles or otherwise known as Frequent Flyer Miles, is a loyalty program offered by airline companies so their most “loyal” customers can be rewarded points that can be used to purchase airline tickets or seat upgrades. This is especially helpful if you have a preferred airline company for most of your flights. If you are a frequent flyer, you can turn your everyday purchases into hard earned airline miles with these premium credit cards.
a. United Explorer MileagePlus Card
b. Southwest Rapid Rewards Plus Credit Card
c. Gold Delta SkyMiles Credit Card from American Express
d. American Airlines AAdvantage MileUp Card

#3 Complimentary Travel Insurance

Just as you hope everything will go as planned when you travel, reality rears its ugly head with flight cancellations, lost luggages, travel accidents or unexpected health issues. These are things that though rare in occurrence, they can cost you hundreds or even thousands of dollars in added expenses. Who knows? Maybe the answer you seek might be what’s in your wallet.

Here are some travel credit cards that offer travel insurance when you travel:
a. Chase Sapphire Preferred
b. Thank You Premier Card (Citi)
c. Capital One Savor Cash Rewards Card

#4 Free Checked Luggage

Checked Luggage fees has been introduced by the airline industry as a temporary offset to high fuel prices back in 2008. With the exception of a few, most airlines stuck with it depending on whether you’re flying domestic or international. If you fly frequently, these charges can add up significantly. 

Some credit card companies offer one checked bag for free when you book your flight tickets through them. If you have these cards, you’re in luck.
a. Citi AAdvantage Credit Card
b. Delta SkyMiles Cards from American Express
c. United MileagePlus Cards from Chase

#5 Discounts on In-Flight Purchases

Do you normally indulge on in-flight cocktails and food purchases? Some airline-specific credit cards with premium benefits offer perks on in-flight purchases like food or drinks whether in the form of discounts or travel points for your future flights. A penny saved is a penny earned is how we look at it. If this is you, here are some examples of credit cards that offer discounts on in-flight purchases you might want to take advantage of.
a. Barclaycard AAdvantage Aviator
b. United TravelBank Card from Chase
c. Gold Delta SkyMiles from American Express

#6 Earn Bonus Points on Airfare, Hotels and Car Rentals

Since you’ve already used your credit card for your travel expenses, why not earn reward points towards your next travel adventure? As an inevitable aftermath of social media revolution, more and more people around the world have developed a yearning for traveling. To take advantage of this growing trend and vast market share, credit card companies are offering bonus points for travel expenses including airfare, hotel bookings and even car rentals.

Here are some noteworthy credit cards that “pays” you to travel:
a. Citi Premier Card
b. Uber Visa Credit Card
c. Wells Fargo Propel American Express Card

Conclusion

Whether or not you have premium credit cards with benefits like cash back rewards and other travel perks, it is generally a great idea to use your credit card when traveling overseas. That is of course if where you’re traveling,credit cards are widely used as an acceptable form of payment. They are much safer to use than cash, and you don’t have to worry about finding a money changer where you’re going.