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As air travel restrictions ease, people are flocking to holiday destinations once again. However, it's crucial to continue taking precautions, such as wearing masks, sanitising, and adhering to COVID-19 safety protocols. Planning a holiday abroad is exciting, but expenses can sometimes hinder your dream vacation. Fortunately, a credit card can help you manage your finances with ease. Here’s everything you need to know about using a credit card for your overseas travels.
Credit cards offer several benefits, especially those with travel privileges or those designed specifically for overseas use.
With certain credit cards, you can enjoy the comfort of airport lounges, escaping the hustle and bustle of busy terminals. Many banks have partnerships with airport lounge chains, providing free or discounted access to cardholders. For instance, the HDFC Bank Regalia Credit Card offers complimentary Priority Pass membership, granting access to over 1,000 lounges worldwide. Similarly, the HDFC Bank Millennia Credit Card provides complimentary access to eight domestic airport lounges within India, along with cashback benefits.
Credit cards often come with airline memberships, offering perks such as free excess baggage and seat upgrades. For example, the 6E Rewards-Indigo HDFC Bank Credit Card offers 2.5% 6E rewards on Indigo flights.
Credit cards can also provide personal concierge services, helping you book theatre tickets, hotel rooms, car rentals, and fine-dining reservations. This saves you time and effort, allowing you to focus on enjoying your vacation.
While credit cards offer numerous benefits, it’s important to take certain precautions to ensure a smooth travel experience.
Most banks charge a 2-3% fee on foreign currency transactions with regular credit cards. If you travel frequently or plan to stay abroad for an extended period, consider getting a credit card that doesn’t charge hefty transaction fees.
Different regions have varying card systems. Europe typically uses chip and PIN cards, while the U.S. often uses chip and signature cards. Ensure your card type is compatible with the destination country to avoid any issues.
Since October 1, 2020, credit cards are not automatically enabled for international transactions. Travellers need to contact their card issuer to activate this feature. This step helps protect consumers from fraud. You can also set limits on international transactions for added security.
Vendors may offer to bill you in U.S. Dollars, but it's more cost-effective to pay in the local currency. Vendors often apply a higher exchange rate than your bank, so paying in the local currency can save you money.
Credit cards may not be accepted everywhere, especially in street markets that prefer cash. Carry some cash and possibly a debit card in addition to your credit card to ensure you’re prepared for any situation.
Using your credit card for cash withdrawals, known as cash advances, incurs high-interest rates. Similarly, using a debit card for purchases abroad can result in high foreign transaction fees. Stick to using your credit card for purchases to avoid these extra costs.
Many banks offer comprehensive rewards programs. To maximise your benefits, make purchases from vendors partnered with your bank and use services offered through bank partners. This strategy can earn you loyalty points that you can redeem later. For example, the HDFC Bank Golf Benefit program allows cardholders to take golf lessons in India and abroad.
Looking to apply for an HDFC Bank Credit Card? Click here to get started.
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