Cashless payment modes such as credit cards are growing in popularity among travellers. Such payment methods do not require them to carry cash in-hand. Instead, the credit card can help make transactions abroad without facing the complications of foreign currency.
Credit cards allow users to access a pre-specified line of credit and utilise the amount as per their requirements. They can repay the credit amount utilised within the grace period without incurring interest on it.
6 ways to save more on your credit card on a trip abroad –
- Get a card with a low foreign transaction fee
Financial institutions can charge a transaction fee on every payment a user makes abroad. It can range from 2% to 5% on every transaction. It can significantly increase the expenses of an individual. Users should avail a card with a low transaction fee to save more on the expenses while travelling.
- Use your international credit card to avail airline fee credits
Some cards offer airline fee credits such as checked-in baggage fees, in-flight meals, etc. Users can significantly reduce travel costs by availing these credits. Users can also opt for complimentary airport lounge access with these cards. Many lounges complimentarily offer benefits like complimentary drinks, food and refreshments, spa treatments, etc.
The SuperCard is one such card that offers up to 4 free airport lounge access and unlimited paid access per year. Some the other benefits they provide include-
- Welcome gift of 12,000 reward points.
- Fuel surcharge waiver of up to RS. 150 per month.
- Interest-free ATM cash withdrawal up to 50 days.
- Emergency loan on the existing credit limit interest free for up to 90 days
NBFCs also provides pre-approved offers to save time and make the process of availing such finances hassle-free. These offers are valid on credit cards, secured credits like home loans, unsecured credits like business loans, personal loans and various other financial products. You can check out your pre-approved offer by sharing a few necessary details.
- Avoid dynamic currency conversion
Merchants all around the world offer the choice of currency for payments to a cardholder. It may seem convenient for the users but it can be expensive too. The exchange rates charged for dynamic currency conversion are usually much higher than the foreign transaction fee charged by a card issuer. Cardholders should be aware of these exchange rates and refer to the same benefits when they use the card.
- Make maximum payments from partner retailers
Card issuers generally have partner retailers that provide discounts on every purchase. Travellers can opt to purchase flight tickets from selected retailers to get a discount on travel expenses. They can also book hotels via selected portals to avail accommodation at a lesser price. They can also rent a car for transportation in a foreign country to reduce the expenses for transportation.
- Take advantage of credit rewards
Cardholders can redeem their previously earned reward points to fund the expenses for their travel. The rewards points can be used to cover various expenses while travelling depending on the terms offered by the card issuers. Generally, the reward points are available on flight fares, hotel bookings, etc. Reduced flight fares and hotel costs can significantly reduce the card expenses during the travel.
Making online transactions is one of the best things to do with card reward points while travelling as card issuers do not charge foreign transaction fees for such payments. Cardholders can make online payments for car rental services, tourist passes, etc. to reduce the cost of the trip significantly.
Also, users can avail reward points earned from their current travel expenses to get attractive discounts on the next foreign trip.
The above-mentioned points will help you to save more on your credit card while travelling abroad. Also, make sure that you know how to redeem your card reward points to avail maximum benefits.