Five top credit cards for spending abroad

Are you heading abroad on holiday this summer? Using the wrong credit card could leave you facing hefty fees and charges.

For many of us, a foreign holiday is the highlight of the year – drinking margaritas in the sun or soaking up fine architecture on a city break.

Unfortunately, your holiday could be more expensive than you’d planned if you use the wrong credit card to make purchases or withdraw cash during your trip. This is because most lenders charge fees of between 2.5% and 3% to use a card abroad.

So, which cards should you consider if you want to keep costs down?

1. The Halifax Clarity Credit Card

Holidaymakers keen to cut costs could consider Halifax’s Clarity Credit Card, which doesn’t charge borrowers a fee to use the card or withdraw money anywhere in the world.

Although Halifax charges interest on cash withdrawals, the rate is a relatively low 12.9% APR Representative.

2. Sainsbury’s Gold Credit Card

The supermarket giant offers worldwide family travel insurance and doesn’t charge any fees to withdraw money or make purchases abroad.

However, there is a £5 monthly fee simply to hold the card, which equates to £60 a year.

This product’s most distinctive feature is the travel insurance package that provides worldwide cover for two adults and up to six children.

Remember, it would be wise to ensure you would make full use of all the benefits before committing yourself to the monthly fee. In addition, the representative APR is 20.1%.

3. The Post Office Credit Card

If you’re planning to spend on your credit card during your holiday, the Post Office doesn’t charge any fees on overseas purchases.

However, you’ll pay 2.5% if you decide to withdraw money and the interest rate on cash withdrawals is 24.1%.

Furthermore, you won’t pay a fee if you use this card to buy your travel money from the Post Office ­– though, remember to check you’re getting a competitive rate before exchanging your currency.

In another plus point, this card carries a 14-month interest-free period on balance transfers.

The card has a representative APR of 16.9%.

4. Saga Platinum

If you’re over the age of 50, you could consider Saga’s Platinum credit card, which doesn’t impose a fee on foreign transactions.

Bear in mind, there is a fee of 2% to withdraw cash. However, Saga won’t charge any interest on cash withdrawals if you clear your balance by the due date. If you don't pay off your debt at this point, the interest rate is 19.6%.

This card has a representative APR of 11.9%.

5. Nationwide Select Credit Card

This card doesn’t charge any interest on overseas spending, but there’s a catch ­– it’s only available to Nationwide FlexAccount holders.

On top of the fee-free spending abroad, this product offers unlimited 0.5% cashback on all UK purchases and 20 months interest free on balance transfers.

As a negative, this deal might not be such an attractive option for those who would like to withdraw cash on their travels. In addition to a 2.5% fee, you’ll pay interest at a rate of 27.9%.

For more travel tips, see Holiday rip-offs revealed and Five free summer activities.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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