How to Find the Best Credit Card for Your International Travel

5 Min Read | Last updated: December 15, 2023

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

Maximize benefits while traveling abroad by using the best credit card for international travel, offering perks like no foreign transaction fees and rewards points.

At-A-Glance

  • The best credit cards for international travel can help you be better prepared for the unexpected while abroad—and could save you money.
  • Choosing a credit card that matches your travel plans can help maximize your benefits and help minimize your costs.
  • Look for perks like no foreign transaction fees and travel insurance benefits.

Few things stir the imagination more than international travel. Yet, whether you’re interested in strolling along the banks of the Seine in Paris or trekking across the Altiplano (high plateau) of Bolivia, there are plenty of practical considerations—and things that can go wrong. For example, you could encounter delays and interruptions due to a canceled flight. Or you might find that you’re paying costly foreign transaction fees whenever you use your credit card. While there may be no way to steer clear of every challenge, the best international travel credit cards could help reduce stress and even save you money.
 
Here are six tips for choosing the best credit card for international travel.

1. Find a Credit Card That Matches Your Travel Plans

Although there’s a dizzying array of travel credit cards, selecting the best international travel credit card doesn’t have to be overwhelming. If you’re loyal to an airline, consider a branded credit card that lets you earn miles in the airline’s loyalty program. If you typically fly with different airlines, look for a card that earns points and lets you apply them towards tickets on a variety of airlines. If you prefer to use a specific hotel chain when traveling, consider a hotel credit card. In some cases, it may make sense to have two or even three credit cards for international travel that you use for specific purposes, such as flights, hotels, and rental cars. Some basic travel credit cards have no annual fee, although premium travel credit cards generally charge a fee in return for more extensive perks.
 
And if you’re an avid traveler, some card providers offer smart fraud detection capabilities that can help you avoid disruption due to declined charges when you’re away in a far-off land—though as a precaution, it’s always a good idea to proactively inform your card company when you’re globetrotting.

2. Add Your International Travel Credit Card to Your Digital Wallet

Adding your credit card to your phone’s digital wallet may make some international payments easier and could provide some security advantages.
 
Paying with digital wallets bypasses the usual signature or PIN requirement by automatically authenticating the transaction.1 These wallets do so without revealing the credit card number to the merchant, making the transaction more secure. Another advantage of a digital wallet is that it may help you avoid pickpockets or losing your wallet.
 
But don’t neglect to carry your physical credit card too, although you might want to keep it somewhere that’s less obvious to potential thieves. Digital payment services may not work or be accepted in every country or at all merchants.

3. Avoid Foreign Transaction Fees

With some credit cards, you pay foreign transaction fees whenever you make a purchase abroad in a foreign currency. These fees are typically around 3%, but vary from card to card.2 You may consider these fees an acceptable expense when traveling internationally. But they can make more than a nickel-and-dime impact on your pocketbook. For example, if you use a credit card that charges transaction fees and spend $2,500 throughout a trip, you could end up with $75 in fees. For international travel, it’s usually best to have a no foreign transaction fee credit card.

4. Look for Cards with Travel Insurance

If there’s one thing that’s predictable when travelling internationally, it’s that life can get unpredictable. Your bags may be delayed because they didn’t make it onto the plane. Your trip could be delayed or interrupted due to a canceled flight.
 
Although you can protect yourself against some of the costs of these problems by buying a travel insurance policy, that approach can get expensive. Depending on the level of coverage, it can easily cost about 4% to 8% of the total cost of a trip.3
 
Fortunately, some of the best credit cards for international travel may provide certain types of protection without the cost of an additional policy. For example, some travel credit cards include travel accident insurance if you pay for your trip with your credit card or provide insurance for lost or damaged baggage and trip delays and cancellations. As always, check your credit card’s terms and conditions carefully to see if any coverage is offered.

5. Cover Your Car Rental Insurance

There are three main ways to cover the cost of rental car insurance when traveling internationally:

  • Use the coverage included in your regular auto insurance policy if allowed
  • Buy coverage from the rental car company
  • Pay with a credit card that offers a rental car insurance benefit (Be sure to check the card’s terms and conditions so you’re clear on the type of coverage offered)

If you own a car, your auto insurer may include coverage for rental cars, but most do not offer coverage for rentals made abroad. However, if you rent a car and you’re involved in an accident, you may have to pay the rental car company out of pocket and then wait weeks for your insurance company to reimburse you. Alternatively, you could pay the rental car company for collision damage waiver (CDW) coverage, which covers the expense immediately—but that can cost $30 or more per day.
 
To avoid paying hefty CDW fees and cover some or all of these potential expenses, seek out a travel credit card that includes a rental car insurance benefit for loss or damage. Some credit cards include this coverage for free, while others charge a small fee regardless of the number of days.

6. Look for Other Perks

Some of the best credit cards for international travel may include other perks that can help smooth your journey and save you money.
 
For example, some credit cards may offer one or all the following benefits:

  • Access to airport lounges: If you travel far or often, your travel card may pay for itself by covering some or all the costs to use a network of airport lounges, providing you with a stress-free place to relax while waiting for your next flight.
  • Credits toward TSA PreCheck and Global Entry programs: These programs can help to streamline security checks for domestic and international travel.
  • Baggage fee waivers or credits: Some travel credit cards, including cards associated with major airlines, offer credits towards baggage fees or let you check at least one bag free.

Different credit cards offer different benefits and features so be sure to check your card’s terms and conditions carefully to see what it offers.

The Takeaway

While international travel is fun and fulfilling, there are many practical considerations—and potential surprises all along the way. Seeking the best credit card for foreign travel can help you save money while possibly even reducing your stress.

Headshot of Samuel Greengard

Samuel Greengard has traveled to 62 countries and 49 states while writing about business, technology and finance for numerous magazines and websites. He is the author of Virtual Reality (MIT Press, September 2019).
 
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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