Thursday, October 28, 2010

USA Today Picks Best Credit Cards to Use Overseas

If you plan to travel overseas, you might be wondering which credit cards you should use. Between high exchange fees and surcharges, some credit cards don't do much to add to your travel experience. USA Today recently listed their top picks for foreign purchases.

Lowest Foreign Currency Surcharge

Capital One: 0%
American Express: 2.7%
Bank of America: 3%
Citibank: 3%
Diner's Club: 3%
Wells Fargo: 3%

Capital One came away the clear winner. That covers purchases made in foreign currency, but what about purchases made in US dollars? It appears that Bank of America, Citibank, and Diner's charge the same amount, even if there is no actual currency exchange. American Express and Well's Fargo don't add a surcharge for dollar billing.

In keeping with their 2001 advice for foreign travelers, USA Today still recommends using debit cards for cash and credit cards for large purchases. Since traveler's checks and currency exchanges lose 5-10% of their value in fees, stick with the plastic when you travel abroad.

For the full list of traveler-friendly credit cards, go to USA Today’s web site.

No comments:

Post a Comment