I’m travelling abroad. What should I look for in a credit card?

When you are traveling abroad, the most important thing to know about your credit card is don’t use it. Really. It is better to use an ATM card at a machine in the country you are visiting than it is to use a credit card which may have additional fees for international purchases.

If you are really relying on your credit cards to help you get by, look for a card with a low cash withdraw fee. You need to read all of the fine print in these cases to insure you are not making a poor decision. Your poor decision may actually have already started if your international trip is to Mexico for spring break. But to limit the damage of that decision, select a card that does not have a high cash withdrawal rate.

Many cards offer one annual percentage rate for regular purchases and a much higher rate for the use of cash withdrawals. Many of these cards are designed with a low foreign currency exchange rate, allowing you to make a purchase on your card that is automatically converted and charged to you in U.S. dollars.

People often think that it may be smart to head to a bank before leaving for your trip. However, most banks will have a conversion charge. Currency exchange stations near international airports also generally have a higher exchange rate along with charging fees for the transaction.

It is also important to contact your credit card issuer ahead of time. Security features of most cards will put a hold on any purchases that are out of the ordinary, such as a sudden overseas purchase. You will now have to contact your card provider and advise them of your trip which could be a hassle after a long flight. Also, if you contact your provider prior to your departure and inquire about their conversion rate, the extra 3-5% they may charge will be something you should consider before making a purchase.

If you are traveling overseas, it is best to choose a credit card with a low conversion rate for foreign currency and that is accepted at most international retailers. It is also important to contact your card issuer prior to your trip to avoid any untimely holds on your available credit. Most of all, be wary of the easiest options for accessing cash while overseas, it’s likely to be far more expensive than you were expecting.