Best credit card to use abroad?

Nixxypies

Hi there,

I'm new to this so I'm sorry if this topic has already been covered! I'm going to Thailand and Cambodia for 5 weeks backpacking this summer, and I don't want to have to carry the cash around with me for obvious reasons! I have read the topic on the best travel credit cards on the money saving expert website but I'm still struggling to understand it!

I am 21 and have no debt, and no plans on getting any debt. The only reason I want the credit card is because it appears to be cheaper to use than a debit or prepay card. I will pay off the card in full every month. I have never had a credit card before and so I don't quite understand the interest, and especially on the cards to use abroad as some still charge interest even if paid off in full.

I would just like some advice on what card you would recommend for this trip. I imagine I will be spending about £1,000 or more, and if there is a charge for the card I would probably pay for both me and my friend on the same card, meaning around £2,000 in just over a month. I am yet to buy travel insurance but normally pay £50 a year for it, and so I would consider the Sainsburys card if it provided this as well as good rates. I would want to cancel the card as soon as I returned home as I have no use for it in the UK but I'm not sure how possible this is or if you are tied in for a certain amount of time.

Any advice would be greatly appreciated. Thank you.

chattychappy

If you've not had credit before you might struggle to get any of the loading-free cards. (Have you?)

You could try opening a current account at Metrobank - their debit card is loading free.

The most practical solution might be to get a parent to apply and have a card on their account. They can ensure the payments are made on time and you are more likely to get a decent limit.

Now people might chip in with all kinds of health warnings for your parents and you might say you would rather be independent. This is a "domestic issue" and I won't comment any further except to say having lived in SE Asia I have bumped into too many British backpackers hanging around Western Union offices (and the like) trying to get money sent from home at great cost in fees and phone calls because they ran out of cash. It is also easier for your parents to sort out any problems (making payments if you're delayed, dealing with over-excited fraud prevention systems etc).

Whatever you do, take backups. Cards have a habit of getting blocked.

PS when looking for insurance, bear in mind that some annual policies have a per-trip day limit.

IWantToBeFree_2

I use the Halifax Clarity card for overseas spending, they don't load the rate, they don't have any transaction fees (for both purchases and cash withdrawals) and even if they offer you a high APR (mine is 21.9%) the interest payable on the cash is minimal if you settle the balance as soon as you return home.

On the point re travel insurance, I have an annual policy through my employer and it has a 45 day per annum limit along with a 30 day single trip limit (which is useless for when I go travelling for 11 weeks) so it is definately one to watch out for!

Venusflytrap

IWantToBeFree wrote: »

I use the Halifax Clarity card for overseas spending, they don't load the rate, they don't have any transaction fees (for both purchases and cash withdrawals) and even if they offer you a high APR (mine is 21.9%) the interest payable on the cash is minimal if you settle the balance as soon as you return home.

Although some residual interest does roll over to the next month.

I withdrew some cash while abroad last month, repaid in full one day later (plus extra beyond interest charged) and there was still some residual interest charged again this month! Still trying to work it out...

Fruit_and_Nut_Case

Nixxypies wrote: »

I'm new to this so I'm sorry if this topic has already been covered!

Start here.

chattychappy

Venusflytrap wrote: »

I withdrew some cash while abroad last month, repaid in full one day later (plus extra beyond interest charged) and there was still some residual interest charged again this month! Still trying to work it out...

If it hadn't appeared on a statement and you hadn't yet paid off your last statement, then it would have been applied to that balance first.