If you're thinking about a holiday you're not alone. Finder consumer surveys show that 54% of Australians plan to go overseas in the next 12 months. So if you plan to travel with a credit card, here are some options to help you save on foreign transaction fees and other holiday costs.
Credit cards offer different types of travel features including 0% foreign transaction fees, airport lounge access and frequent flyer rewards. To kick-start your comparison, we've picked out 4 credit cards with popular travel features.
Pros & cons
Why we like it
Pros & cons
Why we like it
Pros & cons
Why we like it
Pros & cons
Why we like it
Yes, you can use any credit card when you travel overseas. Just like in Australia, the business will need to accept card payments, but that's common in a lot of popular travel destinations.
Keep in mind that many credit cards and debit cards charge a 2-3% foreign transaction fee when you make payments in another country. So before you go overseas with your everyday card, check its foreign currency fee to make sure it's affordable.
If you're trying to save money, the best credit card to use overseas is likely one with 0% foreign transaction fees. If you want a card that can help you earn points and get you there for free, you can compare frequent flyer credit cards.
There are 4 main types of credit cards that offer features and benefits for travellers:
When you're travelling overseas, there are 2 main credit card fees to watch out for:
💡 Tip: Don't forget about annual fees
When you're comparing credit cards for travel, remember to check the annual fee costs. Some cards with rewards and travel perks charge annual fees of $400 or more.
For some people, the value from perks will justify the cost of the annual fee but for others a card that offers a $0 annual fee will make more sense.
Using a frequent flyer credit card is an easy way to earn points for reward flights or other travel perks. If you're collecting points through a few frequent flyer programs, you could also look at a rewards credit card that lets you transfer points to partnered airlines or hotel loyalty programs.
While rewards and frequent flyer points are great, using a rewards card that charges a foreign transaction fee while you're overseas will likely negate any value you'd get from these rewards.
💡 Tip: Bonus point offers
You can often get thousands of bonus points when you sign up for a new frequent flyer or rewards credit card. Usually, you'll need to meet a spend requirement to get them, such as spending $3,000 in the first 3 months.
Sometimes, you'll even earn enough bonus points to fly overseas – so keep an eye out for these credit card offers.
Using a credit card that offers complimentary international travel insurance can help you save money on buying cover.
The complimentary travel insurance usually covers overseas medical insurance, transit accidents and travel delay. The cover usually extends to your spouse or any dependant children travelling with you. As well as travel insurance, some credit cards offer purchase security insurance and extended warranty so you can shop with peace of mind.
It doesn't make sense to get a credit card just for travel insurance because of the potential ongoing costs and impact to your credit score. But I also wanted a card with 0% foreign transaction fees that I could use when I was on holiday overseas. And I didn't want to pay a high annual fee. So I chose a card that met these requirements to help save on costs.
Amy Bradney-George, credit card senior writer
Credit card travel insurance saved me $200 – here's how
A credit card that offers complimentary lounge passes gives you a way to relax in style before your flight.
If you're travelling overseas, look for a card that offers lounge access for international airports – such as American Express Centurion Lounges and Priority Pass lounges. If you're travelling in Australia, there are also cards that offer Qantas Club or Virgin Australia domestic lounge invitations.
Some credit cards offer flights or yearly travel credit, concierge services to help with travel bookings, entertainment and restaurant reservations while you're away or more points per $1 spent overseas and on bookings with an airline partner.
There are also a few high-end cards that offer hotel status and perks. These types of benefits can add even more value and help justify the typically higher annual fees that some more premium cards charge.
Instead of putting all of your eggs in one basket, you should take at least 2 travel money options with you. This may include a credit card or prepaid travel card, your debit card and some cash. That way you'll have a backup if your card is lost or stolen and can avoid being charged credit card fees withdrawing cash from an ATM.
💡 Tip: Global transaction accounts
If you plan to live and work overseas for a while, you could also consider a transaction account that lets you deposit and spend money in different currencies. For example, the Wise multi-currency account or the HSBC Everyday Global Account.
Create a travel budget and use your credit card to spend responsibly. You have to repay everything you put on the card – plus interest if you don't pay your balance in full.
If you are sent a credit card statement while you are travelling, you will need to make a payment by the due date as usual. If you have access to a secure internet connection, you can do this through online or mobile banking.
Alternatively, you could call your bank to pay by phone. If you're earning money overseas, check out Finder's guide to making repayments with foreign currency.
Planning your next trip? Check out our selection of frequent flyer credit cards and see if you can get a few thousand bonus Qantas or Velocity Points when you book your trip.
I always travel with my CBA Gold card. It has no foreign transaction fees and also has travel insurance included. The other benefit to using credit cards when you travel is that any fraud happens, it is dealt with swiftly by the bank.— Matt Corke, Head of Publishing Ventures
Find out which brands ranked highly at 2024 Finder Awards for travel credit cards.
The Bankwest Zero Platinum won this year's Finder Award again as it offers no foreign transaction fees, no annual fee and comprehensive overseas travel insurance. Its 14.99% interest rate on purchases scored highly and helped establish it as a card that travellers can use save on a range of costs.
The Bendigo Bank Ready Credit Card rated highly with its 0% foreign transaction fees, ongoing $0 annual fee and complimentary travel insurance. In addition to the 19.99% purchase rate and $5 overseas ATM withdrawal fee during the analysis period, it provides worldwide Mastercard acceptance.
The NAB StraightUp Card is a no-interest credit card that charges a flat, monthly fee when you use the card. If there's no balance and no spending in a statement period, the monthly fee is waived, making it a low-cost alternative to traditional credit cards and buy now pay later services. The card also offers 0% foreign transaction fees and is a finalist for the second year in a row.
Every year the Finder Credit Card Awards celebrate Australia's top credit cards, with expert analysis of rates, fees and offers based on 12 months' worth of data. Because credit card offers change regularly, these cards might not currently have the most competitive deals but you can use them as a benchmark for current offers.
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A quick note that the Bendigo Ready Credit Card also has a good travel insurance option where you don’t need to pay the whole cost of your travel on the card to activate the travel insurance, just a portion. So, if you have already bought your overseas tickets, and don’t want to pay extra for travel insurance, you might still be able to claim using this card – read the PDS to see the rules. It is also one of the only cards that still has rental car excess reduction on it – so I book all my rental cars through this card
Which cards are best for 2 card holders (husband & wife)?
Hi Saija,
Most credit cards in Australia allow you to share your account with someone by getting an additional card for them that’s linked to your account. A few credit cards also offer joint accounts, where both people share legal responsibility for the credit card account. You can learn more and compare different options in Finder’s guide to joint credit cards. I hope that helps.
Hi Valerie,
Thank you for getting in touch with Finder.
As of this writing, there are some credit cards offering travel insurance for over 65. NAB covers up to 90 years old while Virgin Money, HSBC, and Citi did not include the traveler’s age limit so long that there’s no pre-existing medical condition.
It is recommended that you contact your chosen provider on this matter for further clarification. Once you have decided which credit card to apply with, please make sure though to read the eligibility criteria, features, and details of the card, as well as the relevant PDS/ T&Cs of the card before making a decision and consider whether the product is right for you.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
If I have a 28 degrees Mastercard, does it mean when I withdraw cash from an overseas ATM that there will not be a withdrawal fee?
Thanks for your help in clarifying my query.
Hi Bebe, thanks for your inquiry!
The 28 Degrees MasterCard provides no international transaction fees on purchases, which only covers currency conversion rate charges. Overseas ATM withdrawals may still incur a charge, depending on the local ATM’s withdrawal policies and fees.
Cheers,
Jonathan
Hi,
Is there any card that offers zero foreign transaction fee, and currency conversion fees? If not what card offers the lowest fees.
Regards
Tony
Hi Tony,
Thanks for your question.
You can compare a range of cards that charge no foreign currency conversion fees or transaction fees.
I hope this will help.
Thanks,
Elizabeth