| When I travel abroad - and much of my travel has | | | | So it makes sense to opt for a credit card that doesn't |
| been funded by credit cards over the years - I only | | | | carry all the disadvantages mentioned above. If you |
| use credit cards for emergencies. I am lucky to have a | | | | can, find a debit card like mine that allows you to use it |
| Nationwide debit card that does not charge at all for | | | | abroad interest free. Of course, make sure you have |
| transactions overseas and lets you draw your cash | | | | enough funds to cover your expenses. If you don't |
| interest free too! I am well aware that the cost of my | | | | have enough in the bank and you're relying on credit to |
| trip will drastically escalate if I use any of my credit | | | | fund your trip, consider an authorised overdraft facility. |
| cards for purchases or cash. | | | | It will certainly work out a whole lot cheaper than an |
| This is because credit card companies typically charge | | | | expensive credit card! |
| what is called a loading fee to each and every one of | | | | However if you do decide to use your credit card |
| your overseas transactions. What's more they often | | | | abroad always let the issuing bank know in case they |
| don't even record this fee on your statement - so you | | | | decide to block it against unauthorised use abroad. This |
| can be blissfully unaware of this imposition for quite | | | | could apply to your debit card too but I always use my |
| some time. Each £100 you spend will carry a | | | | debit card abroad and have never had any problems. |
| charge of £2.75 on a typical fee of 2.75%. Is it | | | | As always, better safe than sorry - but sometimes it is |
| worth it? | | | | possible to be over cautious! |
| The most important thing is to avoid drawing cash on | | | | It is also an option to obtain a credit card that is geared |
| your credit card - of course this is just plain common | | | | to use abroad. Make sure that there is no loading fee |
| sense even when you are in your own country, due to | | | | on it and has low APR for cash and purchases. By |
| the 2-2.5% fee they slap on top of each withdrawal. | | | | now you will have realised that the APR is not the only |
| But when you are abroad it is even worse as there is | | | | criteria to watch out for when electing to use a credit |
| not even an interest free period so you will find nasty | | | | card for that overseas trip. You may also need to |
| interest charges levied on your withdrawal too! Truly | | | | consider the benefits of cards that are tailor made for |
| nasty as these are they're likely to be higher even than | | | | frequent travellers as these have air mile and cheaper |
| your current highest rate - 27.9% in some cases. Talk | | | | travel insurance offers attached to them. Indeed there |
| about daylight robbery! | | | | is a whole range of air mile credit cards to choose |
| And it gets worse still. Have you ever heard of | | | | from. For example Virgin Money offers one air mile for |
| "hierarchy of payments"? No? Well you are not alone. | | | | every pounds worth of purchases and if you are |
| This is something that is only in the very tiniest print | | | | willing to pay an annual fee this is then doubled. But |
| somewhere, God knows exactly where, on your | | | | really this is only worth considering if you are a very |
| statement. In many cases the bank will place the | | | | frequent traveller and also like to live the good life! If |
| payment of cash withdrawals last of all - this means | | | | you also book your trip from Virgin Holidays or Virgin |
| that you will be stuck with this ridiculous inflated interest | | | | Atlantic you profit even more with double flying club |
| for the life of the balance. Could anything be worse | | | | miles- this means 4 miles for every pound you spend. |
| short of severe illness or death itself? | | | | Hmm may be worth considering ...There are indeed a |
| Another thing to look out for when using your credit | | | | whole host of additional benefits from using a Virgin |
| card abroad is to remember to pay in the local | | | | card - travel accident insurance up to £250,000 |
| currency to avoid retailers applying the conversion rate | | | | and in the possible event of a delayed or cancelled |
| to your purchases, often in the region of 3%. Do not | | | | flight a useful £750! It really is a very good deal |
| be misled by the apparent favour shown to you in | | | | especially if you need to transfer balances to your |
| allowing you to see the amount you have spent in | | | | Virgin card as they are also offering an introductory |
| stirling. You will just end up by paying more, so beware! | | | | rate of 0% for those! |