Travel credit cards
Compare credit cards to use abroad
- Compare travel credit cards that don’t charge foreign transaction fees
- Compare a range of options, all in one place
- Choose from our panel of trusted providers
What is a travel credit card?
Travel credit cards are like regular credit cards, but with a tailored perk – they're built for spending abroad. That means you usually get:
- Fee-free overseas spending
- Favourable exchange rates.
Some will even reward you for your holiday spending.
Related articles
Most standard credit or debit cards charge a fee to convert your pounds into the local currency when you spend abroad. This is called a non-sterling transaction fee and applies whether you're buying something or withdrawing cash. They’ll also charge a fee when you make a purchase or use an ATM.
That’s where specialist travel credit cards come in. They don't charge these fees, making them one of the cheaper ways to spend money abroad. But any new credit should always be taken on with careful thought, as you don’t want to end up with unmanageable debt.
So, let’s break down the good, the bad, and the alternatives so you can decide if a travel credit card is the right fit for your next trip.
Over 90,000 customers rated us on average 4.9 out of 5
As of July 8th 2025, Compare the Market had an average rating of 4.9 out of 5 from 93,668 people who left a review on Trustpilot. The score 4.9 corresponds to the Star Label ‘Excellent’. Learn more about our rating
Why get a travel credit card to use abroad?
Benefits of using a credit card specifically designed to use abroad include:
Cheaper overseas spending
Travel credit cards could be cheaper than using other types of cards when you’re away as they typically don’t charge you fees.
When you use a regular credit card abroad, you may be stung with:
- A non-sterling transaction fee – basically, a charge to convert the foreign currency into pounds sterling, which is typically around 3% of the transaction amount.
- A cash fee – if you take cash out abroad using a regular credit card, you’ll usually pay around 3% (minimum £3) of the amount withdrawn on top of the foreign exchange fee.
But withdrawing cash can be expensive even with a travel credit card. The ATM provider may charge a fee, plus the card provider will usually charge interest from the day you make the withdrawal.
Better exchange rates
When you use a travel credit card abroad, the payment gets converted into pounds sterling based on your card network’s current exchange rate. And – unlike if you use a regular credit card – this exchange rate tends to be very competitive.
To make the most of this, always choose to pay in the local currency when you’re asked in shops and restaurants. That way, your card provider handles the currency conversion instead of the retailer, giving you a better exchange rate.
Rewards (if you’re lucky)
Some travel credit cards offer perks such as cashback, rewards points and airport security fast track.
These could be worthwhile if you’re a frequent traveller, but interest rates tend to be high. Make sure you clear the balance in full each month or the interest will quickly outweigh the value of the perks.
Credit card protection abroad
Spending abroad on items costing between £100 and £30,000 is covered by section 75 of the Consumer Credit Act. So, if there’s an issue with goods or services you pay for on holiday, you may be able to claim your money back from the card provider.
That said, you’re not guaranteed to get back what you spent. It depends on the terms of your credit card provider and the relevant payment network.
More secure than carrying cash
Carrying a large amount of cash around with you on holiday is risky. If it’s lost or stolen, you could be covered by your travel insurance, but typically only up to a certain amount.
If your credit card goes missing, you can cancel it as soon as you notice. And you won’t be responsible for any unauthorised spending if your card details are stolen and used.
What are the downsides to travel credit cards?
Travel credit cards can have some disadvantages as well as benefits.
- If you don’t pay off your balance every month, travel credit cards can quickly become expensive. They generally have much higher interest rates than 0% purchase credit cards.
- Even cards that don't charge a fee for cash withdrawals will usually charge interest from the day you take the money out. This can really rack up if you don’t pay it off quickly.
- Taking on extra credit if you don’t travel that much may not be worthwhile.
If you’re not convinced a travel credit card is right for you, our cheap travel money guide explains your options, from cash and Apple Pay to travel debit cards and prepaid travel cards.
How do travel credit cards work?
A travel credit card works just like a regular credit card, but with some extra perks that can make spending abroad cheaper and easier. Want to make the most of it? Just follow these simple steps:
1. Find a card
Comparing can help you find the best credit card for using abroad and search for the features you want, such as rewards for spending.
By using our credit card eligibility checker, you can compare any travel credit cards you’re likely to be accepted for before you make a full application. And it won’t affect your credit score.
Compare the Market Limited acts as a credit broker, not a lender. To apply, you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
2. Complete your application
Found the card you want? Now it’s time to apply with your chosen provider. They’ll run a hard credit check, which means they’ll take a deep dive into your credit report.
This helps them decide whether to approve you for a travel credit card and what interest rate and credit limit you’ll get.
3. Start spending abroad
If you’re approved, you can start using your new card once you’ve activated it. You’ll have an agreed credit limit – this is the maximum you can borrow, so keep an eye on your spending to make sure you don’t hit the limit.
As well as using your travel credit card abroad, you can also use it for shopping online with businesses based outside the UK. You can use it in the UK, too.
Quick tipGetting set up with online banking and downloading your lender’s app can help you keep track of your spending and stay within your limit. |
4. Aim to pay off the balance each month
Each month you’ll get a statement showing how much you owe on the card and the minimum payment you need to make by a set date.
As with most other credit cards, travel credit cards work best when you pay off the balance in full each month. Otherwise, interest charges can pile up fast, which could easily overshadow any savings you make in currency conversions and fees.
Quick tipIf you’re worried you might forget to make a payment, setting up a direct debit can help you keep on top of things. |
Can I withdraw cash with a travel credit card?
Yes, you can withdraw cash from an ATM with a travel credit card, but it can be expensive.
Even on travel credit cards offering fee-free cash withdrawals abroad, you’ll normally be hit with daily interest from the moment you take the cash out until you pay it off. And the ATM provider may charge a fee, even if the credit card provider doesn’t.
If you do need to take out cash abroad, you’re usually asked if you want local currency or pounds sterling. Always pick the local currency as it’ll usually save you from currency conversion fees.
How can I find the best card to use abroad?
Ask yourself these questions when comparing travel credit cards:
- Does the card offer fee-free overseas spending and cash withdrawals? These are generally two of the most important features of a travel credit card, so if the answer to either question is ‘no’, try and find a card that does.
- What’s the APR? The APR (annual percentage rate) tells you what you’ll pay in interest and fees over the course of a year. Travel credit cards tend to have high APRs, so pay off your holiday spending as soon as you can to avoid paying any more interest than you need to. As with other credit cards, you’ll generally get 56-60 days interest free on spending, though not usually on cash withdrawals.
- Is there a 0% interest deal? Some cards offer promotional interest-free periods or waive fees for a while – but these offers don’t last forever. Make sure you know when the deal ends and plan accordingly.
- Does the card offer any rewards? Some travel credit cards may offer cashback on spending, points, or perks that could come in handy for future trips. But bear in mind these cards may also come with higher APRs.
- Are you likely to get accepted if you apply? Check before you apply with our credit card eligibility checker.
Quick tipRemember to put the end date of any 0% or low-rate interest deals in your calendar. That way you can try and clear the debt before a higher interest rate kicks in. |
What exchange rate do I get with a travel credit card?
Travel credit cards often offer competitive exchange rates, but these are constantly changing.
If you want to lock in a particularly favourable exchange rate, you may want to look at prepaid travel cards.
What our expert says...
“Travel credit cards can be a good way to spend while you’re abroad as you often avoid many of the annoying fees associated with spending overseas. But you’ll usually need a good credit score to be eligible for the leading deals.
“That said, simply getting a specialist card isn't the end of the story. When you spend with one abroad, you're often asked whether you want to do so in pounds or the local currency. It's often wise to choose the local currency to get the benefit of favourable exchange rates rather than relying on the local retailer or bank to do the conversion. There are many examples of holidaymakers getting a poor return that way.
“In addition, you don't always avoid all fees when taking out cash on one of these cards so it's often cheapest to use them to make purchases on the card.”
- Guy Anker, Personal finance and insurance expert
Frequently asked questions
Are credit cards that offer travel insurance worth it?
Credit cards with travel insurance could be worth it. But it’s important to make sure the policy actually covers what you need.
For example, credit cards that include the most comprehensive travel insurance may charge an annual fee, high interest rates or both.
And credit cards that include travel insurance might not offer the fee-free overseas spending that comes with travel credit cards.
What is dynamic currency conversion?
Dynamic currency conversion (DCC) is when an ATM or retailer abroad gives you the option to pay in the local currency or pounds sterling.
Always choose the local currency – it will almost always be cheaper. If you choose pounds sterling the rate will be set by the merchant's bank. This will usually work out more expensive than the rate offered by your travel credit card provider.
Do I need to let my bank know that I’m travelling abroad?
You don’t have to tell your bank you’re travelling but it can be a wise move. If your provider spots spending in a different country, it might be suspicious and block your card – not what you want on holiday.
At the very least, check your bank’s policy before you go. You can often let it know via your online banking account or app.
Can my credit card get blocked when spending abroad?
If you’ve told your bank you’re going abroad, your travel credit card shouldn’t be blocked. But it can occasionally happen because of security measures aimed at protecting you from fraud.
If you do run into issues, check the back of your card – there should be an international contact number so you can get things sorted.
How can I ensure credit card security abroad?
To keep your credit card safe while you’re abroad:
- Keep it close – always know where your card is and don’t reveal your PIN to anyone.
- Be aware of your surroundings – shield the keypad when you make a withdrawal or key in your PIN.
- Use your banking app if needed – most online banking apps let you temporarily freeze your card. If you’re extra cautious, you could freeze it while on holiday and just unfreeze it when you need to use it.
- Act fast if your card goes missing – let your card issuer know straight away if your card is lost or stolen.
- Keep emergency numbers handy – it's a good idea to note down your card issuer’s 24-hour emergency phone number and keep it somewhere safe with your travel documents. You should be able to quickly find these online too.
Visa has an app to help you if your card is lost or stolen abroad. It also has a list of emergency contact numbers.
Mastercard also has a list of global emergency contacts.
