Top 5 things to look out for when using your credit card abroad by:David Lynes - Loans4
For most people that tend to travel abroad from the UK taking a credit card with
you is a natural thing to do, as it is important that when you are far away from home you have the means to make purchases or cash withdrawals in the event that you run out of available funds. With credit cards you can make purchases direct onto the account or take out the cash that you need, and this can prove to be an invaluable facility for many of those travelling abroad on pleasure or business.
However, although using a credit card abroad can prove more convenient, simple, and affordable, there are a number of things that you need to look at before you make your final decision. By keeping your eyes peeled you could help to avoid some of the different types of credit card debt, and below you will find some of the different credit card debts and problems that could affect you.
1. Check on fees charged on transactions. Credit card companies these days charge a foreign transaction fee on any transaction that is made on your card, and the cost of these fees can vary. You should make sure that you opt for a company that that charges minimal fees for transactions carried out on the card, as the overall cost of a number of card transactions made abroad in any one month can really vary.
2. Remember the dangers of cash withdrawals. It can prove very tempting to withdraw cash when you are abroad and you wish to take money out for spending. But you should bear in mind that this can be a very costly transaction. In addition to the foreign transaction fees you will have to pay the currency transfer fees, and this can add up to a tidy sum over the course of time.
3. Look out for Dynamic Currency Conversion. There are some retailers, hotels, shops, and other places abroad that will charge your card in your home currency instead of the local currency of the destination that you are in. The bad thing about this is that many will charge an additional currency conversion rate of up to 4% in some cases, which can really bump up the cost of any purchase. You should look out for these and make sure that you ask for all transactions to be taken in local currency if any currency conversion charges are likely to be taken by the retailer.
4. Theft and fraud of credit cards. Brits have become high risk victims of credit card fraud abroad over recent years, and this can prove to be a very stressful and costly experience. Always keep a close eye on your card, and in the event that it does go missing make sure that you report it right away.
5. Remember you have protection. In a recent House of Lords ruling it was decided that credit card providers were to be jointly responsible with suppliers for goods and services that were purchased abroad which then either didn't turn up or were faulty. Don't forget that you have this protection in the event that you need to use it.
About the author
David Lynes
Loans4 provide homeowner loan solutions for homeowners. Please visit
http://www.loans4.co.uk for the latest finance related news.
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