Selecting the best credit card for international travel can simplify the financial aspects of your vacation. This can add value to your travel and make the experience more pleasurable. You can choose a credit card on the basis of perks and rewards aligning with your travel needs.
However, it is crucial to have a clear understanding of certain factors like foreign conversion fees, ATM usage charges and others. By understanding them, you can select a credit card that helps you minimise the overall travel cost.
Why to Select a Travel Credit Card
When it comes to international travel, carrying a credit card is a convenient option. For instance, having a credit card with complimentary lounge access can help you relax while you await your flight. There are several other perks to look forward to while selecting a credit card for international travel.
Some of them include:
Booking Advantages
Many credit cards come with sign-up vouchers for hotel and flight bookings. Others may have discounts on specific flights or hotel bookings. Such perks can help you lower your overall travel spending.
Insurance Coverage
Select a credit card with certain insurance coverage benefits. Some of these include:
- Coverage if luggage if misplaced or damaged
- Insurance for air accidents
- Credit liability coverage
- Hospitalisation coverage
This type of coverage plan can give you peace of mind on your travels.
Reward Programs
Many credit cards come up with lucrative reward points or air miles. You can earn reward points/air miles by spending an issuer-specified amount on travel. You can also use the points to get discounts on travel expenditures like flight and hotel bookings.
Best Credit Cards for International Travel
Here are a few options you can consider to get the most out of your card while travelling abroad:
| Credit Cards | Annual Fees | Reward Programs |
IDFC FIRST Bank Wealth Credit Card |
NIL |
|
InterMiles HDFC Bank Signature Credit Card |
₹2,500+taxes |
|
SBI Card Elite Credit Card |
₹4,999 |
|
Axis Bank Magnus Credit Card |
₹12,500 |
|
Factors to Consider
Selecting the right credit card can save you on travel expenditures. To maximise your savings, you can consider the following tips:
- It is crucial to check the insurance and what it covers. Some credit cards may have insurance, but look for important factors like luggage coverage, refund on trip cancellation and others.
- Look for the markup charges, typically ranging from 1-3%. Having a low exchange rate can help you lower your costs on transactions.
- Get a clear vision of reward programs before applying for a card. Some credit cards may offer attractive rewards like discounts on particular hotels or flight bookings. However, it will be of no use if the specific hotel or the flight is not to your liking.
- Consider the annual and joining fees of the card. Some credit cards with lucrative rewards come with hefty annual fees. Consider whether the card’s pros outweigh its costs.
While it is important to check the rewards on credit cards, you need to always read the terms and conditions regarding redemption. Many credit cards may charge a redemption fee for you to qualify for the benefit of reward points. If you’re looking for a credit card with zero rewards redemption fees, you can consider opting for the One Credit Card.
It is a lifetime-free card that offers several attractive features, such as up to 5X rewards monthly on the top two spending categories. It also comes with shopping and travel perks. For example, you can save up to ₹5,000 on Yatra and up to ₹1,000 off on EaseMyTrip on travel and flight bookings.
You can get easy access to the Forex calculator to check Forex charges before you make an international transaction through the One Credit Card App. On the app, you can also plan your overseas holiday with a detailed expense planner based on your preferred mode of travel – economy, luxury, or backpacking. To get all these benefits, download the app or visit the website and apply now!
