3 Ways To Use Your Credit Card Wisely When You Travel Overseas

02 FEBRUARY 2017

3 WAYS TO USE YOUR CREDIT CARD WISELY WHEN YOU TRAVEL OVERSEAS

 

If you travel overseas often, you will know how tricky it can be to keep up with the different currencies. Don’t worry, by using the right credit card you can save more money and avoid hassles.

 

Use the Right Card When Travelling to be Rewarded

There are credit cards which give cardholders extra rewards when they use it during their travels.

 

Some credit cards will give additional discounts to the cardholders who book for their holiday with online travel agents. For example, HSBC offers discounts when cardholders make bookings through Expedia and Agoda. 

 

While certain credit cards offer extra rewards for overseas spending such as HSBC Premier World MasterCard. The card offers 10 times reward points on overseas hotel and dining along with 5 times reward points for spending on airline ticket purchase. 

 

You can also get flight tickets in exchange for spending with your credit card. The AirAsia-Citi Mastercard allows you to collect AirAsia points by spending with the card and then convert the points into BIG points to redeem flight tickets. Do take note that there are amount caps along with terms and conditions you need to understand to get the most savings with your credit card.

 

Use Credit Card to Enjoy Better Foreign Currency Exchange Rates

Keeping up with exchange rates to get the best offer can be tricky. Limit your usage of cash and save yourself time and hassle by using your credit card when travelling overseas. But in order to enjoy the competitive rates, you need to learn the difference between foreign transaction fee and dynamic currency conversion (DCC). 

 

When a transaction is made in a foreign currency, the transaction will be converted into ringgit using US dollars as the base currency on the date of the transaction received and then processed by card issuers as well as payment networks ( e.g: American Express, Visa, and Mastercard). 

 

There is usually a small foreign transaction fee on each transaction done with credit card while overseas, which ranges between 1% to 2%. Cardholders will also only be able to get a full view of their transactions including the exchange rate when they receive their monthly statement. 

 

As for DCC, the exchange rates are usually higher because it will be determined by the relevant merchant in the countries you travel to. So choose to pay in the country’s currency because foreign transaction fee is cheaper than DCC. 

 

Charge Flight Tickets to your Card to get Free Travel Insurance

You can get free travel insurance if you purchase your flight ticket with your credit card. Many credit cards now offer free travel insurance without cardholders realising. For example, the CIMB Visa Signature and Citi PremierMiles Visa Card offers complimentary travel insurance that covers cardholders up to RM500,000 and RM300,000 respectively for any personal accidents. 

 

The trick to enjoy all these perks is to choose the right card. With CompareHero.my, you can choose a credit card that will fit your requirements and your eligibility with just a click away, use the free comparison tool today.


Fara Joifin
Editor

Fara Joifin is a content writer who enjoys traveling, watching TED talks and experimenting in the kitchen during her free time. She has a Degree in Journalism and enjoys writing articles that can educate people whilst also entertaining them. She hopes to see the Northern Lights one day, but in the mean time she is pursuing her dream of writing great content. Check out her other written work at CompareHero.my’s blog.

READ RELATED

【MALAYSIA MOVEMENT CONTROL ORDER EXTENDED】COMPANY CLOSURE FROM 18 MARCH - 14 APRIL 2020

Updated: March 25, 2020 1300pm, Malaysia Announces Restricted Movement Order Extended After The Trend Showed New Covid-19 Positive Cases Had Spiked.
25 MARCH 2020
【MALAYSIA MOVEMENT CONTROL ORDER】COMPANY CLOSURE FROM 18 - 31 MARCH 2020

Updated: March 16, 2020 10.15pm, Malaysia Announces Restricted Movement Order After Spike In Covid-19 Cases.
17 MARCH 2020
【DENMARK】WILL CLOSE ITS BORDERS TO ALL FOREIGN VISITORS

Updated: March 16, 2020. The Restriction Applies To All Foreigners, Including Those Who Were In Denmark Recently.
16 MARCH 2020
【NEW ZEALAND】EVERYONE TRAVELLING TO NZ FROM OVERSEAS TO SELF-ISOLATE

Updated: March 16, 2020. Effective From Midnight Sunday Which Is 16 March 2020, All Travellers, Except For Those Coming From The Pacific Islands, Will Have To Self-isolate For 14 Days On Their Arrival To New Zealand
16 MARCH 2020
【AUSTRALIA】ARRIVALS FROM OVERSEAS WILL BE FORCED TO SELF-ISOLATE FOR 14 DAYS

Updated: March 16, 2020. Those Arriving In Australia From Midnight Will Go Into Self-isolation.
16 MARCH 2020
【VIETNAM】NEW COVID-19 TOURISM POLICIES

Updated: March 13, 2020
13 MARCH 2020
✈【MALAYSIA AIRLINES】PREVENTIVE MEASURES

Malaysia Airlines: Your Safety And Well-being Are Our Priority!
13 MARCH 2020
【FRANCE】CORONAVIRUS - ADVICE FOR ALL VISITORS

Health Advices, Hotlines And Arriving In France.
12 MARCH 2020