Pros and Cons of Using a Credit Card While Traveling

Pros and Cons of Using a Credit Card While Traveling

 I am consistently #team credit card while traveling. However, while in Phuket last year, I did want to try a restaurant that was cash only. But a couple more steps down the road and I was able to find a new place to eat. I try to get a hundred or two in cash from an ATM at the airport when I land but sometimes it doesn't last. Traveling requires some research in advance as some areas are more remote. So depending on where you going, more cash may be needed. Let's discuss the pros and cons of using a credit card while traveling.

Pros:

  1. Global Usage
    The convenience of using your credit card is undeniable! From bustling cities to remote islands, credit cards are used everywhere, saving you from the hassle of carrying cash or needing to exchange currency.

  2. Better exchange rate                                                                                         I always select the local currency when using my credit card. In my experience my credit card company gives me  a better rate than most currency exchange booths. Your  credit card does the heavy lifting by automatically converting your spending into local currency. 

  3. Travel Insurance
    The big name credit cards come with travel insurance and fraud protection.  Lost baggage and illness can not be always be avoided, however some credit cards can assist with cancelation and or reimbursement.If someone gets their hands on your card details, you won’t have to worry about losing your hard-earned money. Any suspicious charges are usually spotted and reversed, so you can travel with confidence.

  4. Lost protection
    Staying at a hotel? If you lose a wallet full of cash, you will be out of luck. If you lose a wallet with a credit card, you can call your bank, you won’t have to worry about losing your hard-earned money. Any suspicious charges are usually spotted and reversed, so you can travel with confidence.

  

 

 

Cons:

  1. Transaction minimum                                                                               Some businesses may have a minimum transaction amount for you to be able to use your credit card. In addition, there may be some additional fees. In these cases, paying with cash might save you some money. It’s always a good idea to ask about fees before making a purchase.

  2. Foreign Transaction Fees
    Foreign transaction fees—up to 3% on each purchase are applicable on every purchase. These fees can add up quickly, making your trip more expensive than anticipated. Look for cards that don’t charge these fees to keep your budget intact.

  3. Inconvenience of Fraud 
    Fraudsters can use RFID readers or skimming to steal your credit card information. While you can dispute the charges but the fraud may not happen right away so you have to be mindful and review your statements regularly.

  4. Cash-Only Spots
    Not everywhere accepts credit cards, especially in off-the-beaten-path locations. Be sure to carry some local currency for those cash-only establishments so you’re never caught off guard.

 

So which team are you? In reality, it better to carry a mixture of both. What do you think?

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