The vast 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 (January 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.
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NatWest Credit Card
Foreign transaction fee
None
Cash withdrawal fee
3%
Representative APR
12.9%
1
NatWest Credit Card
Best Travel Credit Cards For Overseas Travel
FEATURED PARTNER OFFER
Halifax Clarity
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
23.90%
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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.
Why We Picked It
The Halifax Clarity card charges zero fees when you use it to make purchases or withdraw cash abroad. It’s also currently offering £20 cashback if you make a purchase on the card within 90 days (paid within 180 days).
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.
Pros & Cons
- No foreign transaction fees
- No cash withdrawal fee
- £20 cashback offer
- New and existing customers
- Immediate interest charged on cash withdrawals
FEATURED PARTNER OFFER
Barclaycard Rewards
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Foreign transaction fee
None
Cash withdrawal fee
None
Representative APR (variable)
28.90%
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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.
Why We Picked It
The Barclaycard Rewards credit card is not only free of overseas charges but, so long as you pay off your balance every month, you won’t pay interest either. This even includes withdrawing cash from at ATM in the local currency.
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. You can also get five months free subscription to Apple Music, Apple Arcade, Apple News+ or Apple TV+. Remember to cancel before the end of the offer period if you don’t want to pay for this subscription afterwards.
This card is cost-free, but only if you pay off your entire balance every month. If there is a balance remaining you’ll be charged a representative 25.90% 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 £21,000.
Pros & Cons
- No foreign transaction fees
- No cash withdrawal fee
- Earn 0.25% cashback
- New and existing customers
- High representative APR
- Can only hold one Barclaycard
FEATURED PARTNER OFFER
New Day Bip Credit Card
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Foreign transaction fee
None
Cash withdrawal fee
n/a
cardless credit account
Representative APR (variable)
29.9%
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 23.90% p.a. (variable), the representative APR is 23.90% (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
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
At an assumed credit limit of £1,200, at a purchase rate of 23.90% p.a. (variable), the representative APR is 23.90% (variable). Credit available subject to status.
Why We Picked It
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.
Pros & Cons
- No foreign transaction fees
- Plastic-free account
- Link to Apple Pay or Google Pay
- No card, so can’t withdraw cash
- High APR
FEATURED PARTNER OFFER
NatWest Credit Card
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Foreign transaction fee
None
Cash withdrawal fee
3%
Representative APR (variable)
12.9%
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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.
On NatWest's Website
Foreign transaction fee
None
Cash withdrawal fee
3%
Representative APR (variable)
12.9%
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR 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.
Why We Picked It
NatWest card offers no fees on non-sterling transactions, so it’s a great travelling companion if you want to use it abroad. It has a low standard APR of 12.9%.
How are the overseas cards ranked?
To arrive at our star rankings, 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)
- Eligibility: such as whether you need to be an existing customer
- 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 bySection 75 of the Consumer Credit Acteven 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 circ*mstances. 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.
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As a seasoned financial expert with extensive knowledge of credit and debit cards, especially in the context of international travel, I can provide valuable insights into the concepts mentioned in the article. I'll break down the key points and shed light on the relevant aspects.
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NatWest Credit Card:
- Foreign Transaction Fee: None
- Cash Withdrawal Fee: 3%
- Representative APR: 12.9%
NatWest stands out for its absence of foreign transaction fees, making it an excellent choice for international travelers. However, a 3% cash withdrawal fee should be considered. The relatively low representative APR of 12.9% makes it an attractive option for those who may carry a balance.
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Halifax Clarity:
- Foreign Transaction Fee: None
- Cash Withdrawal Fee: None
- Representative APR: 23.90%
Halifax Clarity is highlighted for its fee-free usage abroad. While it offers a £20 cashback incentive for purchases within 90 days, users should pay off their balance promptly to avoid the 23.90% APR, which applies immediately to cash withdrawals.
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Barclaycard Rewards:
- Foreign Transaction Fee: None
- Cash Withdrawal Fee: None
- Representative APR: 28.90%
Barclaycard Rewards not only eliminates overseas charges but also provides cashback (0.25%) and additional perks like free subscription to Apple services. However, the high representative APR of 28.90% applies if a balance is carried over.
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New Day Bip Credit Card:
- Foreign Transaction Fee: None
- Cash Withdrawal Fee: N/A (cardless credit account)
- Representative APR: 29.9%
The New Day Bip Credit Card offers fee-free spending abroad but lacks a physical card for cash withdrawals. The cardless credit account can be linked to digital payment platforms. Users should be cautious of the high representative APR of 29.9%.
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Travel Credit Card Rankings Criteria:
- Fees for Overseas Use: Prioritizing cards with no foreign transaction fees, no cash withdrawal fees, and no interest if the monthly balance is cleared.
- Representative APR: Consideration of potential interest charges for those unable to clear their balance.
- Eligibility: Factors like age, credit experience, and income requirements.
- Promotional Periods and Perks: Secondary considerations such as 0% deals on purchases, balance transfers, or money transfers.
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What's Different About Travel Credit Cards:
- Designed for cost-efficient spending abroad without frequent fees.
- Offers protection under Section 75 of the Consumer Credit Act for qualifying purchases.
- Competitive exchange rates and potential cashback/rewards.
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Considerations and Alternatives:
- Interest Rates: Travel credit cards may not offer introductory 0% deals, and APRs can vary based on creditworthiness.
- Fees: Watch out for annual or monthly fees.
- Dynamic Currency Conversion: Be cautious when offered the option to convert payments into pounds instead of keeping them in the local currency.
- Alternatives: Debit cards without foreign transaction fees, prepaid currency cards, and carrying foreign currency as cash.
In summary, choosing the right travel credit card involves considering various factors, including fees, APR, eligibility, and additional perks. Travelers should be aware of alternatives and carefully assess their financial preferences before selecting a card.
