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Are you planning your first big trip and wondering how to manage your finances while traveling? Travel cards can be a great option for beginners, providing a convenient and secure way to make purchases and access cash overseas. In this guide, we’ll take a closer look at what travel cards are, how they work, and some of the best options for beginners.
What are travel cards?
Travel cards are specialized credit or debit cards designed for use while traveling overseas. They typically offer benefits such as foreign currency conversion, low or no transaction fees, and access to ATMs and cash advances. Some travel cards also come with perks like travel insurance or rewards points for travel-related purchases.
How do travel cards work?
Most travel cards work like regular credit or debit cards, but with added features for international use. You can use them to make purchases, withdraw cash from ATMs, and manage your account online or through a mobile app. Some travel cards may also require you to pre-load them with funds, while others allow you to link them to your existing bank account.
What are the benefits of using a travel card?
Travel cards offer several advantages over other forms of payment when traveling overseas:
- Foreign currency conversion: Travel cards typically offer competitive exchange rates and lower fees for converting currency, so you can avoid the high fees and unfavorable rates charged by banks and exchange bureaus.
- Low or no transaction fees: Many travel cards waive foreign transaction fees, which can add up quickly when using a regular credit or debit card abroad.
- ATM access: Travel cards often allow you to withdraw cash from overseas ATMs, which can be more convenient and cost-effective than exchanging currency or carrying large amounts of cash.
- Security: Travel cards are often more secure than carrying cash or using a regular credit or debit card, as they offer features like chip and PIN technology and fraud protection.
- Perks: Some travel cards offer additional benefits like travel insurance, concierge services, or rewards points for travel-related purchases.
What are some of the best travel cards for beginners?
There are many travel cards on the market, each with its own set of features and benefits. Here are some of the top options for beginners:
Chase Sapphire Preferred
The Chase Sapphire Preferred is a popular travel rewards credit card that offers 2X points on travel and dining purchases, and 1X points on all other purchases. Points can be redeemed for travel, cash back, or other rewards, and there are no foreign transaction fees. The card also comes with travel and purchase protection benefits.
Capital One Venture
The Capital One Venture is another travel rewards credit card that offers 2 miles per dollar on all purchases, with no foreign transaction fees. Miles can be redeemed for travel or cash back, and the card also comes with travel and purchase protection benefits.
Charles Schwab Debit Card
The Charles Schwab Debit Card is a popular option for travelers who prefer to use a debit card. The card has no foreign transaction fees or ATM fees, and offers unlimited fee rebates for all ATM transactions worldwide. The card is linked to a Schwab brokerage account, but there’s no requirement to invest money in the account.
Citi Double Cash
The Citi Double Cash is a cash back credit card that offers 2% cash back on all purchases, with no annual fee. While the card does charge foreign transaction fees, it can still be a good option for travelers who want to earn cash back on their purchases.
FAQ
| Q: Are travel cards better than using my regular credit or debit card when traveling? | A: It depends on your card’s fees and benefits. Travel cards are generally designed to offer better rates and lower fees for international use, but your regular card may also offer some of these benefits. |
| Q: Do I need to have a good credit score to get a travel card? | A: Many travel cards do require good or excellent credit, but there are also options for those with fair or poor credit. It’s important to check the card’s eligibility requirements before applying. |
| Q: Can I use a travel card for domestic purchases? | A: Yes, you can use a travel card for any purchases, whether domestic or international. However, some travel cards may offer better rewards or benefits for travel-related purchases. |
| Q: What should I do if my travel card is lost or stolen? | A: Report the loss or theft to the card issuer immediately, and follow their instructions for getting a replacement card or accessing emergency funds. |