If you’re going abroad on a trip, travel credit cards can be the cheapest way to spend while you’re there.

Travel credit cards work like standard credit cards but don’t charge hefty fees for using them abroad as many standard credit cards do. 

You can use a travel credit card to make a fee-free purchase and pay the balance back later.  You won’t pay any interest if you pay off the balance in full each month. 

Some travel credit cards might also let you withdraw cash from an ATM while you’re abroad without paying a fee, although these are rarer.

The very best cards might even allow you to earn cashback or rewards for spending on them while on holiday.

You can use a no-foreign-transaction-fee credit card in most shops, restaurants and other businesses or at ATMs. Note that interest charges typically apply from the day you make a cash withdrawal.

Many businesses have signs to advertise which credit cards they accept. You’ll know you can use your card if its logo is on display.

Typical fees faced when using a standard credit card overseas

Credit cards with no foreign transaction fees are often the cheapest way to buy something while abroad. 

That's because the exchange rate you get is about the best you can find as a member of the public — with the Visa and Mastercard rates almost identical to those currency traders use for international transactions.

Another major benefit is that you get automatic purchase protection on things you buy worth more than £100 and up to £30,000 thanks to UK credit card laws.

However, credit cards for travel won’t be the most suitable option for everyone. One of the big drawbacks is that they often don’t offer 0% deals on purchases, which means that unless you clear your balance each month, you’ll pay interest on all your holiday spending.

Some credit cards might also charge monthly or annual fees, and if you’re late making a repayment or miss it completely, fees also apply. Missing payments risks hurting your credit score too.

Not everyone will be accepted for a travel credit card. To get the best deals, you usually need a good credit record. You also need to apply for your credit card in plenty of time.

Eligibility tools, like that used by our partners at Experian, match you with the credit cards you're most likely to get based on your circumstances.

It then tailors the results depending on what you're looking for - a travel credit card, for example.

Using an eligibility tool means that you can rule out cards you're less likely to qualify for ahead of time, so you won't hurt your credit history by making multiple applications because you’ve been rejected for one or more credit card.

That's because it uses a “soft search” credit check when comparing cards, which doesn't appear on your credit file to anyone except you.

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