In this article, we’re exploring the best credit cards for traveling for UK citizens and residents. This will include a look at different payment options, including those tied to foreign and offshore bank accounts.
This article is part of our free series on opening an offshore bank account with a credit card, which you can access for free by clicking the link above.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Credit Cards for Travelling
- How to Choose the Right Travel Credit Card
- Benefits of Choosing the Best Credit Card for Travelling
- Which Credit Card Is Best for Europe Travel?
- Frequently Asked Questions
- Ready to Explore Your Options?
Best Credit Cards for Travelling
The best credit cards for travelling as a UK citizen combine low transaction fees, strong consumer protections, and zero foreign transaction fees. These elements are important as they determine the cost of actually using your credit card while abroad or when making online purchases in foreign currencies.
In the following section, we’ll help you navigate your options when choosing the best credit cards for traveling from the UK. This will include an assessment of onshore (UK) and offshore (Channel Islands, Caribbean, etc) credit card options.
This information is relevant to anyone considering a new credit card as well as people looking for alternative ways to complete foreign transactions or send money to companies in other countries.
Of course, one of the most important considerations is how much will it cost you to use your card overseas, which we will also discuss in greater detail.
How to Choose the Right Travel Credit Card
When choosing the best credit cards for traveling, there are a few important variables that you should consider, including:
What to Look for in a Credit Card
- Low-exchange rates and fees
- Travel credit rewards
- Credit card loyalty points
- Car insurance coverage
- Other credit card perks
We’ll explore each of these in greater detail below, including a few unique opportunities for travel credit cards outside of the UK.
Low Exchange Rate Fees
One of the most important factors to consider when looking at the best credit cards for traveling is the foreign exchange fees that are charged on overseas and foreign currency transactions.
Credit Card Foreign Exchange Rates
If you do not choose carefully, you may find that your card provider charges between 2% and 3% of the value for all foreign transactions. And, depending on your spending habits and how you choose to travel this could add up to several hundred (or several thousand) dollars per year.
Travel Credit Rewards
Next, when looking for the best credit cards for traveling, most people are searching for the most lucrative travel rewards programs. And, of all the rewards that you can earn, the ability to accumulate miles in order to facilitate free or cheap travel tends to be the most sought-after reward.
Travel Credit in the UK
Unfortunately, the best travel rewards programs are in the United States, where new cardholders are able to earn lucrative sign-up bonuses and per-dollar-spent rewards at higher rates than in the UK.
Travel Credit in the US
Fortunately, it is possible for foreign non-residents (e.g. UK citizens) to obtain US credit cards in certain instances. We detail these instances in our free US credit card content, which you can access from the top menu of the website above.
Credit Card Loyalty Points
That said, there are other credit card rewards programs outside of travel rewards, which we refer to as credit card loyalty points. These loyalty points are often available from the best credit cards for traveling and can accumulate to offer hotel, car rental, and shopping privileges.
Car Insurance Coverage
Beyond travel points and loyalty programs, there is another benefit that is often overlooked when trying to determine the best credit cards for traveling. This is the ability to waive car insurance coverage when renting vehicles abroad.
Credit Card Coverage
This is especially important when you are traveling to foreign countries and renting vehicles for extended periods of time. In many cases, the cost of insurance can increase the cost of a car rental dramatically. That is unless you have a credit card that offers this coverage as part of the benefits you receive.
Other Credit Card Perks
Other credit card perks that you should look for when choosing the best credit cards for traveling include low fees, access to airport lounges, reimbursements on certain purchases, credits for certain services, and more. Here’s a look at a number of different credits and reimbursements you might be able to secure.
Credit Card Reimbursements & Credits
- Transportation (e.g. Uber and Lyft)
- Airport lounges
- Grocery spending
- Petrol station spending
- Retail spending
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Benefits of Choosing the Best Credit Card for Travelling
There is a wide range of benefits that consumers can unlock when they choose the best credit card for traveling. But, it’s important to realize that credit cards are generally not tailored to your specific requirements. So, instead of looking at a few key benefits, you need to think of card selection more broadly. Here’s how.
Choosing the Right Credit Cards
When choosing the right credit cards, you should be looking for cards that improve your life and unlock desirable benefits. This means, that even if a card does come with a fee, you’re able to extra more value than it costs.
Choosing the Wrong Credit Cards
Alternatively, if you choose the wrong credit cards, you end up with a card that costs more in fees, maintenance, and annual membership than the total value that you are able to extract from the card.
Comparing Credit Cards
When trying to find the best credit cards for traveling, here are the variables that you should consider:
- Card eligibility
- Card membership fees
- Monthly maintenance fees
- Foreign exchange fees
- Foreign transaction fees
- Available benefits & rewards
Which Credit Card Is Best for Europe Travel?
When looking for the best credit card for travel to Europe, we typically suggest that our members look at one of the international credit cards that are available from major UK banks in the Isle of Man, Guernsey, or Jersey.
Banks in these jurisdictions, typically cater to individuals with a wider range of international travel requirements and offer attractive cards in multiple currencies, including USD, EUR, and GBP. This makes the card selection in these jurisdictions ideal for individuals who are frequently traveling to the European Union and the United States but still need a GBP credit card for expenses in the United Kingdom.
Importantly, there are restrictions on residency. So, which cards (and accounts) you can access as a resident of the United Kingdom may vary.
Frequently Asked Questions
Below are three of the most common questions we receive from people looking into the best credit cards for traveling. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Is the Best Credit Card to Use While Travelling?
The best credit card to use while traveling is the card that best suits your needs and priorities. For example, different cards offer different perks, like savings, rebates, free airport lounges, and the ability to earn miles. So, depending on your goals, one card may be better than the other. Use the information in this article to decide.
What Card Is Best for Going Abroad?
When going abroad, the best card is typically one with low (or no) foreign transaction fees, limited annual maintenance fees, and the ability to earn points on purchases that can contribute to future travel. However, each person has different priorities. So, credit cards should be chosen based on the individual’s unique requirements and objectives.
Is It Better to Use a Credit Card When Travelling?
When traveling, it is usually better to use a credit card than a debit card. There are a number of reasons for this, but one of the most important reasons is that credit cards offer greater security for consumers.
In many instances, this means if you lose a credit card or are the victim of fraud while traveling, you will be compensated. This includes any fraudulent purchases and the ability to get a replacement card quickly. Of course, the specific protections do depend on the card issuer. So, be sure to confirm their specific consumer protections before you need to rely on them.
Ready to Explore Your Options?
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