Using credit cards abroad

Jonny0000

I often travel abroad and my usual style is to take my credit cards as a means of backup in case money is lost of i need to purchase something unexpectedly.
However my last trip was a little longer and so I decided to use my credit card for all accommodation fees so that my cash was available elsewhere.
I did however see an interview on TV briefly with Martin saying using credit cards abroad is the worst way to spend money. Why?
I acknowledge they charge a 2% fee per transaction but this is better than the 4% often quoted on commission of travel money abroad. Are there any hidden fees I am missing out?
The credit cards I have are Barclaycard and HSBC BTW.

Biggles

He was probably saying drawing cash on a credit card can be bad value, as they will charge you 2.75-3% exchange rate loading plus 2.5 or 3% cash withdrawal fee, plus interest from the date of withdrawal.

Making purchases on your credit card is, as you say, the best way to pay for things, even better if it's one of the credit cards that doesn't apply any exchange rate loading (eg Nationwide, Post Office etc). With other cards, you'll still pay 2.75-3% loading but that's far less than you'll pay if you change cash at a bureau de change. Plus the fact that your money remains in your bank earning interest in the meantime.

Jonny0000

Thank you for clearing that up a little, I worked out that it was a good way to do it and thought I had missed something. I never withdraw cash on a credit card in the UK, let alone abroad so I probably overlooked the possibility of him talking about that scenario.

CLAPTON

if you had a nationwide CC you would avoid the exchange fee

HamiltonL

And the Abbey Zero. I believe a lot of existing Abbey customers have a special no-forex fee offer over the summer as well.