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Top tips for using credit cards abroad - Prune

When travelling overseas, the use of cash and checks has significantly gone down over the years. Now you can use the same credit/debit cards abroad that you use within India. Using your credit card for expenses will make your travel hassle-free. With the credit card, you won't need to get into currency conversion and can avoid paying pointless fees.

Due to the ease with which credit cards can be hidden and kept safe, you won't actually lose any money due to an unforeseen incident such as theft. And even if it's stolen, one cannot lose the money because of it. You can report the incident to your respective bank, and you won't be responsible for fraudulent purchases if you inform them when the card goes missing.

However, using a credit card overseas does not automatically reduce the cost. There are some tips you can keep in mind when travelling abroad!

Carry a backup card

It is best to take more than one card with you. You'll be relieved to have a backup if your first card is denied while making payments. Bring cards that provide additional benefits for travel-related expenses like dining out, lodging, and transportation. And make sure that the rewards and perks are valid outside of India.

Inform your issuer about travel

Always let your bank card issuer know that you're travelling overseas. In a situation where there is suspicious activity, the issue can take immediate action. It can include purchases made thousands of miles away from your residence. Inform your issuer in advance of your travel plans to avoid any confusion and prevent account freezing. You can do this by reaching out to your bank or through bank apps.

Avoid foreign transaction fees

Your international trip can cost more if you use a credit card with a foreign transaction fee. Depending on the credit card company, these costs could vary. If you use your credit card to make purchases overseas, you might face additional charges. But foreign transaction fee is not always charged by credit cards. It's best to use one with no such fees while travelling abroad.

Check for ATMs before travel

Due to taxes and currency rates, you should avoid cash exchanges abroad. Instead, use an ATM to obtain local money for transport and other expenses. So check for the ATMs in advance to not face the trouble of locating them if there's a need. But do remember that using them abroad can incur an additional fee. Limited usage is preferable.

Avoid dynamic currency conversion

To give you a better understanding of how much something will cost you, dynamic currency conversion enables you to have a transaction done in foreign currency. But while it might appear practical, it can be pricey. When converting an expense for your statement, your card issuer can often utilize exchange rates far worse than those used for dynamic currency conversion. If you have the option to perform your transaction in foreign currency, opt for the local currency instead.

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