What should I look out for when choosing a credit card to use abroad?
As well as flat fees and foreign usage charges, some credit cards will also charge you interest for using your card outside of the UK – even if you pay off the balance in full. You might also be charged if you use your credit card to take money out at a cashpoint.
So, when it comes to choosing a card, think about how you’re likely to use it on holiday. For example, if you intend to use it to take out cash (just be aware that you’ll be charged interest on the withdrawal immediately), then a credit card with low or no cash withdrawal fees would be a good choice. Alternatively, if you know you’ll only use your credit card for purchases abroad, then look for one with the most competitive foreign transaction fee.
You might think by using your debit card abroad you’ll avoid paying extra fees, but while you might not be charged interest, you could still be charged for purchases and withdrawing cash.