Booking overseas travel can be costly, but with a little forethought, you can save money by using a credit card. Using a credit card that imposes international transaction fees, which average 3% of every purchase, is one of the most common blunders credit cardholders make while traveling abroad.
If you spend $1,000 on purchases while on vacation abroad, you’ll pay $30 in fees, which you may easily avoid by using a credit card that doesn’t charge a foreign transaction fee. There are a lot of financial measures to take before a foreign vacation, and one of them is picking the correct credit card.
Select popular rewards credit cards have been examined to determine the finest options for consumers traveling outside of the United States, allowing you to maximize benefits while avoiding unnecessary fees. There are no foreign transaction fees on any of the cards listed below. Let’s check the list of best credits cards for travel.
American Express Gold Card
Annual fee: $250
The American Express Gold Card could be the perfect rewards card for you if you enjoy eating and travel. Cardholders get 4X points for every dollar spent at restaurants and 4X points per dollar spent at U.S. supermarkets (on purchases up to $25,000 per year, then 1X). Plus, whether you book flights directly with airlines or through amextravel.com, you’ll get 3X points.
Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House, Boxed, and participating Shake Shack locations also offer an annual dining credit of up to $120 ($10 per month) to cardholders.
This card does have a $250 annual fee, but if you use the $120 dining credit each year, it can be lowered to only $130. The benefits you receive then help you “pay” for the card even more.
Capital One Savor Cash Rewards Credit Card
Annual fee: $95
Regular APR: 15.99% to 24.99% variable
A dining rewards card is a must-have for travelers who enjoy eating out. On dining purchases, the Capital One Savor Cash Rewards Credit Card gives 4% cashback. Capital One describes eating as restaurants, cafés, bars, lounges, fast-food franchises, and bakeries, and offers one of the highest rewards rates on dining available. You may also take advantage of gourmet advantages like exclusive access to premium bookings with OpenTable. And don’t worry about paying foreign transaction fees if you’re dining abroad with this card.
You may also receive 4% cashback on entertainment purchases, whether it’s movie tickets, a trip to the zoo with the family, or an evening bowling with friends. Cardholders who purchase tickets through Vivid Seats, a ticket resale service, will receive 8% cashback through January 2022.
Exclusive access to eating, sports, and entertainment events, such as the iHeartRadio Music Festival and the Capital One JamFest, is available to cardholders. Aside from eating and entertainment benefits, there’s 3% cashback at grocery stores and 1% on all other purchases.
Capital One VentureOne Rewards Credit Card
Annual fee: $0
Regular APR: 15.99% to 24.99% variable
The Capital One VentureOne Rewards Credit Card, with its amazing offer, should be considered by anyone wishing to book hotel rooms. Capital One TravelSM members earn 5X miles on hotel and rental car reservations. All other purchases earn 1.25X miles for cardholders, making it a good choice for everyday use. There are no yearly fees or foreign transaction fees with this card.
Another advantage is the 12-month introductory 0% APR period for new purchases (after a 15.49 percent to 25.49 percent variable APR). This is useful if you want to spread out the cost of a vacation across a year and avoid paying interest.
The Capital One VentureOne Rewards Credit Card offers a generous welcome benefit to new customers: 20,000 bonus miles after spending $500 in the first three months. Miles can be redeemed for prior travel expenses, effectively giving you a statement credit. You can also use the Capital One Rewards Center to make new travel reservations.
Chase Sapphire Reserve
Annual fee: $550
Regular APR: 16.99% to 23.99% variable
The Chase Sapphire Reserve is designed for foodies and regular travelers who want opulent features like annual travel credits, access to airport lounges, and free hotel room upgrades. You can get a $300 travel credit per year, which can be used for anything from airlines and hotels to parking and tolls.
Cardholders earn 3X points on travel and eating at restaurants around the world (immediately after earning your $300 yearly travel credit), and 1X point for $1 on all other transactions. When points are redeemed for travel through Chase Ultimate Rewards®, they are worth 50 percent more. When you redeem 50,000 points for travel, hotels, auto rentals, and cruises with Chase Ultimate Rewards®, for example, they are worth $750. This perk is an excellent method to maximize the value of your rewards.
Discover it Secured Credit Card
Annual fee: $0
Regular APR: 22.99% Variable
A secured card maybe your best option if you have no credit history or have weak credit (scores below 580). The Discover it® Secured Credit Card is a well-rounded secured card that has many of the same perks as unsecured cards. For no annual charge, cardholders can earn cashback, receive a substantial welcome bonus, use the card overseas without paying additional costs, and much more.
Each quarter, cardholders get a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined transactions, followed by a 1% cashback. Additionally, you can receive an unlimited 1% cashback on all other transactions. The introductory bonus is particularly unique: Discover will immediately match all cash back you’ve earned at the conclusion of your first year for new cardmembers alone. So, if you earn $50 in cash back at the conclusion of the first year, Discover will add another $50 to your account.