Credit Card Charges: What are they and How to Avoid them?

Credit Card Charges: What are they and How to Avoid them?

Before having your very own credit card, it might look like an absolute magic trick seeing someone swipe through the register and walk away with their bag of purchase. It may look simple but credit card charges need a deep understanding for you to avoid it. This guide will show you the different credit card charges and how you can shun them.

Interest Charges

Since credit card allows you to use the credit limit set by your card provider, this acts as a loan. This means that using your credit card means borrowing money which comes with interest charges.

For instance, if your credit card outstanding balance amounts to £100 with an APR of 20%, you’ll likely get an interest rate of £20 per year.

To shun this interest, you must pay off your debt each month. When not possible, you can pay lesser by checking for a card that carries a lower APR.

Fees For Breach Of Terms

Late Payment Charges

Your credit card agreement includes terms for minimum repayments each month; hence, non-payment or delayed payment will be charge for a fee costing £12. If you want to avoid delayed payment fees, you can set up a direct debit to ensure that you do not fall into arrears.

Besides, if you miss payments, this can affect your credit rating which compels your card issuer to increase your interest rates. They can also withdraw any introductory 0% APR deals available.

You can compare 0% Purchases Credit Card HERE…

Fees For Exceeding Credit Card Limit

The credit limit set by your provider is the absolute amount that you can spend on your card. Once you exceed to your limit you’ll be charged approximately £12.

You can prevent exceeding beyond your limit by monitoring your spending and checking your card limit. You can also ask your provider to raise your limit, but you should make sure that you can afford to pay for it.

Find out more on how credit limit works…

Dormancy Fees

Some credit cards and store cards impose charges for inactivity. This can happen if you haven’t been using your card for too long say for instance for more than a year. This fee is called dormancy fees. If your credit card charges for dormancy fees, you might consider cancelling the card instead.

Card Charges

Cash Withdrawals

Withdrawing cash from your credit card bears charges which are as follows:

Withdrawal fee – This is usually around 3% of the amount that you take out from your credit card, though there’s normally a minimum charge amount of a few pounds.

Higher APR – The interest rate fees on cash advances is extremely higher than your APR on purchases. This is frequently around 27.9%, but are sometimes greater.

Immediate interest – each time you withdraw from your credit card, you’ll be automatically charged with the interest based on the amount that you took out.

Balance Transfers

When transferring balance or money, you’ll be charged for the transfer which usually costs around 2.5%. This means if your transferred £2,000 to a card with a 2.5% transfer fee, it would costs you £50 to initiate the transfer.

You can save when transferring balance by checking for cards with no fees for transfers or those with lower costs. Find for the cheapest deals here.

Spending Abroad

Using your credit card abroad could carry the charges below:

tickLoading fee which is approximately 2.99% each time you spend on the card

tickCharges for exchange rate which are usually less competitive as compared to other holiday money

tickThe interest each time you take out cash from your card through the cash machines or ATMs

tickWithdrawal fee that can cost around 3% of the amount you took out.

Basically, you’ll usually have 56 days before interest charges apply if the card is used for purchases at your own country.

On the contrary, cards that are intended for foreign usage can bear no fees for cash withdrawals.

Here’s how you can use a credit card abroad

Monthly and Annual Fees

Some credit cards bear charges that you need to pay monthly or annually, which can be between £12 to £150 a year.

In case, you have a monthly fee, this will be included in your credit card bill.

Getting A Refund

If you’re charged fees incorrectly, you can contact your credit card provider right away and secure a refund. Check on how you can reclaim for card charges on our guide.

Using Credit Card to Spend Abroad

Using Credit Card to Spend Abroad

You can use your credit card to spend abroad when shopping, dining out and more. Of course, this is considering the place accepts your card. You can even use your credit card to take out cash from cash machines or ATMs abroad. However, you need to watch out the expensive fees for foreign usage.

Can I Use Credit Card Overseas?

Whatever your purpose for travel may it be for business or holiday, a credit card can be a convenient means to spend abroad. These are widely accepted anywhere so they can save you from the hassle of carrying cash.

However, it can also be one of the expensive means to spend abroad. You also have to watch out for fees that include:

Non-sterling transaction fees

Usually, this is a fixed portion of the amount you spend overseas.

Cash withdrawal fees

This is one of the most costly transactions that you can do with your credit card. In addition to foreign transaction charges, you’ll also have to pay a cash advance fee and interest on the amount you withdraw.

Interest on any cash you withdraw

The percentage of interest on cash withdrawals is normally much higher than the rate charged on your purchases. Besides, there’s no grace period so you’ll start accumulating interest from the moment you take the money out.

For further details on how much credit card can cost you, check our guide.

On the contrary, if you can find a credit card that does not charge for transaction fees in foreign usage, you’ll be able to save cost each time you use this card.

What To Do When Using Credit Card Abroad?

Before Your Trip

You can inform your provider if you’re going to use your credit card overseas by either calling them, logging into your online banking or app or by visiting the closest branch.

You might be at risk of not being to use your card while overseas when your provider blocks your card due to foreign transactions that might be flagged as suspected fraud. This is the reason why you have to get in touch with your provider and inform them about your spending the card overseas.

We also suggest that you take a back up cash, a debit card or a prepaid card just to have an alternative in case something unfortunate occurs.

When You’re Overseas

When you’re overseas, make sure to shield your PIN when using a cash machine. You shouldn’t be giving your PIN t anyone, regardless if they introduce themselves as police or a representative of your bank.

Also, when you take a trip between cities and spots, you should not take all your card at once. Be sure you have some back up left in your hotel room to ensure you have access to funds if anything happens.

Moreover, if you use your card to pay abroad, tell the retailer to charge you in the local currency.

Choosing The Best Card

When choosing for the right card, make sure that you pick the one that suits your needs. If you prefer using a credit card overseas, you might need to consider checking for the following factors:

tickCards that do not charge you for transaction fees

tickCards with no fees for cash withdrawals

tickA lower interest rate in terms of cash advance or cash withdrawals

Furthermore, getting a new credit card with no foreign usage fees can help you make the most of your holiday money.

Compare travel credit card to check on the charges for using it overseas.

Also, you have to apply 2 weeks before your trip to ensure that you have adequate time to get the card via post.

Here are some of the options on how you can spend abroad.


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0% Purchase Credit Cards: What Is It and How It Works?

0% Purchase Credit Cards: What Is It and How It Works?

If you’re thinking of a card that allows you to buy items directly and pay the purchases interest-free, you’re looking for a 0% purchase credit card. Once you pay off the amount you owe from your purchases at the end of the pre-agreed 0% period, you won’t be paying any interest, and the credit won’t cost you any charges.

What Is A 0% Purchase Credit Card?

A 0% purchase credit cards are types of credit cards that let you buy products, goods or items and pay it off for a fixed period without interest fees. The interest rate will revert to its standard purchase rate (revert rate) once the introductory interest-free period ends.

How Do Interest-Free Purchase Cards Work?

0% purchase cards work the same as your standard credit card. However, these cards allow longer interest-free periods. 0% purchase cards allow 3 months interest-free period which can range up to 29 months. Check this guide to find out more.

This can be useful when making large purchases that you can’t pay the costs upfront.

How To Find The Best 0% Purchase Credit Cards?

There is no such thing as the best credit anywhere else since credit cards are intended to suit different budgets and spending preferences This means finding the best credit card depends on your preferences and spending habits. 

You can compare interest-free credit cards by shopping around for offers that suit your taste. You can scrutinize the deals and determine which one is tailored to fit your needs.

When you compare 0% purchase cards, you can consider the features listed below to choose the right card for you:

tickLength of interest-free period: The 0% purchase period can range from 3 months, 6 months or up to 29 months; so, it’s worth checking for the card that covers your needs long enough.

tickAnnual costs: You have to check whether you have to pay some other fees on your credit card. Some 0% purchase cards come with annual charges. You can check if the card offer is good when you don’t have to pay much on annual fees and interest. Most of the time it’s best to shop around for cards with no annual fees or lesser annual fees.

tickRevert rate: This is the interest rate that you can get when the agreed free interest period ends. It’s also referred to as standard purchase rate. This is approximately 10% or over 35%. We suggest that you pay off your balance before the promo period ends.

Pros and Cons of 0% Purchase Card

0% purchase cards can have both pros and cons that you must be aware of.

Pros

tickInterest-free for a fixed period

tickIt can help you reduced sky-high interests rates

tickAllows you to spread the cost of large purchases

Cons

tickHigher APR after the agreed 0% interest-free period

tickExcludes balance transfers

tickCharges for a balance transfer that you need to pay

Which Cards Can I Qualify?

You can qualify if you met the set criteria based on the following factors:

tickYour income

tickYour total outstanding debt

tickThe regular costs and expenses which include your regular essentials

How do I know which cards I’ll be eligible for?

Most lenders look onto these factors when checking for eligibility. You can use our Eligibility Checker to determine which cards you’ll most likely to be accepted. This is a soft credit check, so it won’t leave any mark on your credit record.

Moreover, our eligibility checker works with a soft search function to evaluate your eligibility for a credit card. This would not harm your credit record or leave a mark on your credit file.

You can see more about our eligibility checker here.

FAQs on 0% purchases credit card

What is a credit limit?

It is the absolute maximum amount that you can borrow on your card. This amount is set by your provider. Check here on how it works.

How do I make payments to my credit card?

You can repay your credit through direct debits to ensure that you don’t miss payments.

When can I get my card?

It normally takes ten days for you to receive your card after you have complicated the application and get approved. You can also check on how you can speed up the process here.

Do I need to have a good credit record to be eligible?

Having a good credit standing can help lenders determine your creditworthiness and whether to accept your application.

What are the minimum payments

The minimum amount to pay each month is set by your provider. Usually, the charge is approximately £12.


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What Are The Benefits Of Using A Prepaid Euro Card?

What Are The Benefits Of Using A Prepaid Euro Card?

Prepaid Euro cards can be a great alternative to spend overseas. By loading the card with the holiday money that you need, you’re set to take your dream destination. However, you must understand the benefits and the charges associated with Euro Cards. This guide will show you how you can avoid the charges and chose the right card for you.

Advantages Of Using Prepaid Euro Card

It will costs you less when you use a prepaid card to spend overseas rather than using your standard debit or credit card. The foreign exchange fee that you can get from a debit or credit card will cost approximately 2.75% to 2.99% when used overseas. This means that if you spent around £200, you’ll be charged around £6 for using the card.

It can be a useful budgeting tool that can help you avoid overdrafts or debt. This is because you can’t exceed spending the money that you don’t have. It only allows you to spend the money you have loaded onto the card.

You don’t have to worry about using the card since it offers the same protection as your credit and debit card. They have chip and pin protection and can be cancelled in case you lost it or when someone took it.

You can get better exchange rates in a prepaid Euro card than the deals you can get in currency exchangers.

Some prepaid cards allow you to hold a balance in multiple currencies. This can be beneficial if you’re travelling from one country to the other. Besides, getting a single currency prepaid card could be expensive when used it to a destination that does not accept the currency it holds.

Additionally, you can get multiple cards should you wish to have additional cards for your family. These cards are linked into one prepaid account. You can also take advantage of cashback as part of rewards when making purchases. 

What Are The Costs Of Using Euro Cards?

Prepaid travel cards can carry charges for certain transactions and other related fees. Some providers may require an initial fee for buying the card. It may also require you to make an initial minimum top.

There might also be a monthly or annual charge for holding the account. This is apart from cash withdrawal fees and charges when spending on the card.

Besides, topping up the balance requires charges each time you do it. If you do not use the card, you’ll be charged for being inactive as well. While in case you lost the card, you’ll also face fees for replacement.

How To Avoid The Charges

To avoid the potential charges, you have to check the terms and description of the offer. This will show the extra charges and the fees associated with the card.

Once you’re done comparing the Euro cards and chose the one you prefer, you can still consider the following tips to avoid extra costs:

Loading and Withdrawing in Bulk

– Withdraw cash that you need in bulk so you won’t be charged for each transaction

Using the Local Currency

– Use the local currency since some shops may process the transaction using sterling, making you pay charges for using a different currency

Keeping it Safe

– Make sure you keep the card and never lost it since you’ll need to pay fees for the replacement

Choosing the Right Card

– Choose the right card which suits how you plan to use it

Where To Find A Better Deal For Prepaid Euro Cards

If you got plans on going to Europe for a holiday, using a prepaid Euro card as holiday money could be a great way to spend within the budget. Generally, it’s better than taking a lump sum of cash. Besides, it can help you make sure that you spend within your means and on what you can afford.

Compare prepaid travel cards

Using A Credit Card For Interest-Free Purchases

Using Your Credit Card For Interest-Free Purchases

0% credit cards allow you to make purchases without interest charges for a set period. Many cards in this niche help you elude interest on large purchases. This means you do not have to pay an interest granted you pay off the outstanding balance before the 0% introductory offer ends. They’re oftentimes referred to as interest-free credit cards.

How Does An Interest Free Credit Card Work?

Interest free credit cards carry no charges on interest for your purchases up to several months. This period is called ‘interest-free period’.

For instance, with a 20 months interest-free period, your card provider won’t charge you any interest, but monthly repayments have to be sufficed. Once you fall behind payments, you’ll start paying for interest on your spending.

Why Should I Get a 0% Credit Cards?

0% credit cards are useful when making large purchases. This allows you to spread the costs over a period and pay it through instalments. It’s more likely the same when you borrow money free granted that you’re able to pay it off on the set period.

This means you do not have to think about interest fees as long as you can pay in full before the interest-free period ends. Well, of course, you have to abide with the card terms which includes making the minimum repayments on time each month.

Moreover, this type of card is suitable when you need costly goods such as expensive home appliances and other big buys which you can’t pay all in one go.

Costs of 0% Purchase Cards

Interest free credit card providers do not normally charge fees. However, if you fail to settle the balance in full on the set period, you’ll start generating charges each month. This could costs you a large sum which might take longer to clear off.

Choosing 0% Purchase Card

In comparing 0% credit cards, you need to check which one offers the longest free interest period. Generally, these are the best deals because they give you a long time to settle your balance. This means you’ll certainly afford to pay off your debt before the period ends.

You also need to watch out for the representative APR when you compare credit cards. APR is the amount of interest that your card provider will charge you once your free interest period ends.

What If I Can’t Get The 0% Card?

If you can’t get the exact credit card that you prefer, you can try to shop around and look for the best offers.

Besides, it’s not ideal to try applying for several credit cards at once because of how credit card application damages your credit score.

We also recommend that you check your credit file to ensure that all data posted are accurate. Should there be any inconsistency, you can contact credit reference agencies before you try your luck in credit card application.

Also, you can compare credit card offer HERE.

Check your likelihoods of getting a card by checking your credit report. It does a ‘soft credit search’ which is not displayed on your credit file, or harm your score.

Many card providers have specific standards to suffice, including:

tickMinimum wage

tickGood credit score

Make sure you satisfy these criteria before you try applying to reduce the risks of getting rejected.


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Credit Card Limits: How Does It Work?

Credit Card Limits: How Does It Work?

Holding high limits would allow you to spend further which can easily rack up tons of debt. Your credit limit is the absolute maximum value that your credit card issuer allows you to borrow.

What Is Credit Limit?

A credit limit is the authorised maximum amount that you can spend with a credit card. For instance, if your credit card limit is £1,500 and you have used up £500, you still have £1,000 to spend further.

Ways To Check Your Credit Card Limit

tickSigning in to your account online or using its mobile up when available

tickContacting your card provider in writing, phone or mail

tickChecking your latest credit card statement

Additionally, when you apply for a new credit card, the card issuer will inform you about the absolute limit of your card before conducting a full credit review.

How Is Credit Limit Calculated?

Among the things that lenders consider when granting you a loan or credit card is the chances of recovering back the money that you borrow. They can’t grant you more money if you don’t pay it back. Besides, each lender has its way of distinguishing the credit limit for each card. This ca include:

tickincome

tickcredit history

tickrepayment history

tickdebt-to-income ratio and other details.

How Does Credit Rating Affect Your Card Limit?

When applying for a credit card, your provider will run a credit review. Below are the two stages of credit check

Two Stages Of Credit Check

Soft Credit Check: Your card issuer or institution will check your personal details without leaving any mark on your credit record.

Hard Credit Check: Most providers conducts a full credit check to determine whether they will approve or decline the limit that you prefer. This can leave a mark on your credit file.

Information That Provider Will Check

When your provider scrutinizes your credit file, they will check for:

Outstanding Debts – they’ll check for debts and its status. This can include your mortgage, catalogues, credit cards and other types of debts.

Missed Payments – they will also check your repayment history to see if you missed any payments or have fallen to arrears.

Available Credit – they’ll check if you have any overdraft or another card.

Typically, the credit card company is evaluating how reputable you are as a borrower. If you’re allowed a bigger credit limit, it indicates that the provider is positive that you stay on top of your payments.

Can I Raise My Limit?

If you’re able to keep your payments regularly and paid your balance before it’s due, you can request to raise your credit limit. Most institution reassesses your credit limit every six months. Some may instantly raise your limit while others have to scrutinize if you’re eligible for a higher credit limit. Your provider might have reached out to you and offer the option to raise your limit if you’re qualified.

On the contrary, they can also reduce your limit due to the following circumstances:

tickExceeding your credit limit

tickMissing the minimum repayment

tickYour credit record is drastically affected by other debts

tickYour card is not often used

Can I Exceed On My Credit Limit?

You can exceed your credit limit but you’ll normally get charges when going over your card limit. This can result in you being able to spend until you pay off the outstanding balance.

Once you exceed on your limit, it can:

tickReduce your credit card limit

tickLose any 0% credit card offer you have on your card

tickAccumulate a higher APR on your card

tickHave a negative record on your credit

We suggest that you get in touch wot your provider, as soon as you found out that you exceeded on your limit. You can try to negotiate to pay for the balance and get on the same bracket or card limit again.


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Credit Cards: Choosing The Right Credit Card For You

Credit Cards: Choosing The Right Credit Card For You

Determining the right credit card relies on several factors, one of which is on how you intend to use the card. This guide will help you decide on choosing credit card that best suits your needs and help you save money or earn rewards.

Choosing A Credit Card That Suits You

When getting a new credit card, it’s crucial to understand the purpose you plan to use it for. Is it to pay down debt, improve your credit rating, fund a large purchase, or earn rewards.

The Following shows the different types of credit cards, and each is intended for different spending demands.

Spending Demands Type of Credit Card How it works

transferring an existing balance

Balance transfer credit card

Transfer the amount you owe for a or lower interest rates on your repayments

low interest or free interest fees

0% purchase credit card

Spread the value of a large purchase over a longer period

transfer an existing balance and spend interest free

0% balance transfer credit card

Transfer the amount you owe for a or lower interest rates on your repayments or free interest rates

repairing my credit rating

Bad credit credit cards

Satisfying credit card payments each month to help repaid or rebuild your credit

earn rewards each time I spent

Rewards & airmiles credit cards

Cashback and vouchers each time you shop are offered as a reward.

credit card that I can use on my holiday trip

Travel credit card

Lesser charges when used abroad unlike your standard credit card

Where Will You Use Your Credit Card?

Spend Abroad

You can use most credit cards overseas, but it can be costly. There are charges that you’ll acquire if you spend your credit card abroad.

If you travel often and prefer to use your credit card, you could find one with a low-interest rate and no fees for transactions or cash withdrawals.

Compare travel credit cards HERE.

Paying Debt

If you want to pay down your debt, a 0% balance transfer could make it feasible. It can also work if you one several credit cards. You can transfer the balance of from one or more cards to your new credit card with 0% balance transfers. You’ll be paying for this balance through monthly instalments. However, you must make sure to pay off this amount since free period on some credit cards could last up to 29 months.

However, in cases of overdraft or any existing loan, you can qualify for a 0% money transfer card. These are cards that functions similarly like your balance transfer card, except that you can transfer money from your new card to your bank account. 

Build Credit

If you have a poor credit history, you can resort to credit builder cards. These are credit cards with high-interest rates but low credit limits. This works by paying off the balance every month to gradually improve your credit rating.

Large Purchases

Making large purchases is possible but you have to be cautious in spending your money. You have to keep in mind that you should only spend what you can afford to pay. This could be a problem for people who can’t control their spending.

On the contrary, if you can afford to spend money all in one go, you should get a 0% purchase card. These type of cards offer lengthy pay off for the balance. This means you’re given time to settle payments before the free interest period ends.

Earn Rewards

Many credit cards these days allow several advantages and rewards to boost incentives. The rewards can vary but some of the usual standard rewards offered can include:

tickRewards card that gets you vouchers or in-store points for your preferred shops when using the card.

tickAir miles card which can get you air miles to set towards flights as well as airport lounges access.

tickCashback that can give you a portion of cash each time you spend on the card.

Can I get Credit Card Even With Bad Credit?

Upon applying for a credit card, card providers will conduct a credit check. There can be a huge problem when you had previously owed money and:

tickWent on default

tickDeclared bankruptcy or was served a CCJ or County Court Judgment

tickHave not settled any overdraft

tickExceed beyond your credit limit

tickWas declined by other providers or lenders

All these can affect your credit rating. This means a prepaid card or other alternatives will suit you best.

Things To Consider When Choosing The Right Credit Cards

Among the points, you should contemplate when choosing the right credit card include fees, interest rates, interest-free period, and rewards. Compare credit cards HERE.

Credit Card Cash Advance: Can I Take Cash From A Credit Card?

Can I Take Cash From A Credit Card?

You can use your credit card if you want to withdraw cash from it. However, these can costs you a huge expense. In this guide, we will talk about when you can be charged and how to keep the costs low.

How Much Cash Can I Withdraw From My Credit Card?

Taking out cash from your credit card is treated as a cash advance. The amount of cash you can withdraw from your credit card depends on the following factors:

Total Credit Limit

When taking out cash from your credit card, there is a maximum amount that is set to be your limit. This is stated on your credit card statement.

Available Credit Limit

The amount you have on your credit card can affect how much you have left to withdraw.

Cash Advance Limit

Most credit card providers have established a maximum percentage on your credit limit that you can withdraw.

You can get in touch with your provider and find out the cash advance limit on your credit card as well as the charges for certain transactions.

What Are The Costs For Withdrawing Cash?

Taking our cash from your credit card is an expensive way of borrowing. Every time you withdraw cash using your credit card, you will acquire these charges:

Daily Interest

Each time you take out cash from your credit card, you will accumulate a daily interest. This charge starts from the time you took out the money until you paid the outstanding balance.

Cash Advance Fee

This is normally a part of the amount you withdraw or a fixed charge that depends on how much you advance from the card.

For instance, if a credit card charges 3% or £10, a cash withdrawal would costs you £10, while a £30 withdrawal cost you for £1,000.

Where Can I Withdraw Cash?

You can take out cash from your credit card by using a cash machine, at your provider’s branch by presenting your proof of identity, or through cashback when you use your card in a shop.

You can take out cash from your credit card by:

Cash Out

tick

Using ATMs or cash machines

tick

At your provider’s branch by presenting a proof of identity

tick

Cashback when you pay with your card in a shop

Cash Advances

tick

Paying for mortgage

tick

Making payments on utilities

tick

Buying travel money and travellers’ cheques

tick

Purchasing gift vouchers

tick

In gambling such as in most casino transactions

Should I Avoid Taking Our Cash From My Credit Card?

Utilizing your credit card to secure cash is not a good habit. It does not only costs a large sum but also impacts your credit record. This means it can affect future credit or loan applications.

This is because taking out cash from your credit card can imply to lenders that you don’t have any funds available on your bank account.

Travel Credit Card: All You Need To Know About It

Travel Credit Card: All You Need To Know About It

If you’re planning to take a trip overseas, a travel credit card might suit your needs. It’s ideal to search for the best deals that you can on a travel credit card to keep the costs down while pending abroad.

Travel Credit Cards

Travel credit cards work similarly as your standard credit card. However, they won’t impose immense fees when spend or used abroad unlike several standard credit cards.

When using a travel credit card, you’ll pay for the products or services using your card and pay the costs later.

Using a Standard Credit Card To Spend Abroad

You can use your credit card to spend overseas, but you have to be mindful of the fees it will cost you when using your standard credit card. You’ll likely to be charged with expensive fees when using it overseas.

When using your standard credit card at home, you’ll usually get 0% on your purchases or even lower on interest rates. However, if you use it to spend abroad, you’ll possibly get higher fees on purchases and interest rates. This could caught you by surprise when getting your credit card bill.

You can shun these charges by finding the best travel credit card HERE.

On the contrary, travel credit cards can cost cheaper since it’s designed for use abroad. This means you won’t be charged for any hefty fees. Some travel cards may even allow you to withdraw cash while abroad without any fees. However, travel credit cards that lest you take cash abroad without fees are rare.

Choosing The Best Travel Credit Card

If you’re looking for the best credit card to spend overseas while keeping the charges low when spending, you can compare credit cards HERE. You can compare the fees to get the best travel credit card that you can take on your holiday.

Following are the possible credit card fees that you may be facing when using a credit card abroad.

tickForeign Transaction Fees

Each credit card transaction abroad come with fees. These are usually a percentage of the amount spent. You can check for a credit card that will not costs you fees for foreign transactions or cards that has the lowest foreign transaction fees.

tickCash Withdrawal Fees Abroad

These are fees that you can acquire when getting cash through the ATMs or cash machines abroad. The fees you’ll get will depend on the amount you took out from the card. For instance, if the cash withdrawal charge es is 5%, taking £200 out of a cashpoint overseas will amount to £10 cash withdrawal fee.

tickFree Cash Withdrawals Abroad

Some travel credit cards allow you to take cash overseas without any charges. You can check with your provider or compare travel credit card offers HERE.

tickCash Withdrawals Interest Charges

Since you’re using your credit card for spending and pay the costs later, you’ll get charges on interest from the day you took out the cash or use the card for purchases. The interest rate is normally larger than your APR or annual percentage rate.

tickForeign Exchange Rates

The conversion rate is set by the company that process your card transactions. This can affect the deal that you’ll get when converting pounds to the local currency. These companies are the payment processing network such as Visa, MasterCard, or American Express.

Where Can You Use Your Credit card?

You can use your international credit cards in most business or in ATMs. In fact, most businesses advertise the types of cards they accept; so, once you see the logo of your card, you know what that means. On the contrary, a good alternative that might suit you are prepaid travel cards.

Prepaid Euro Cards: Everything You Need To Know

Getting A Prepaid Card In Euros

Prepaid Euro cards could be a great means to manage your spending abroad, without any cash on hand. However, you must know the important details about Prepaid Travel Cards. You can use prepaid euro cards for transactions in shops or cash withdrawals while you’re travelling abroad in Europe.

What Are Prepaid Euro Cards?

Prepaid Euro cards are an alternative means of spending money overseas. These cards work slightly different from your debit and credit cards. It is determined to be safer than taking a large amount of cash for holiday money. However, along with the several benefits of prepaid Euro cards, it also holds risks that you have to be aware of.

What Are The Costs?

tickBuying the card: Some providers may require an initial fee when getting the card and activating it.

tickMaking an initial top:You may have to put money that may have a set minimum as a start-up to use your card.

tickAccount holder fees: There may be an account holder charge, where you pay just by having the account. This is normally in a monthly or yearly basis.

tickCash withdrawal: The same as your debit and credit cards, you could be obliged to pay when taking cash using the cash machine or ATMs. However, if this fee isn’t applicable, your withdrawal might have a limit for free before getting charged. This limit applies at various intervals. It can either be monthly or annually.

tickSpending on the card: Using the card for purchases online or in a store may also carry charges per transaction.

tickTopping up the balance: Some prepaid Euro card providers may not have charges when you top up the card balance.

tickCard replacement: If you misplace your card or in case it’s stolen, you’ll have to pay for getting a replacement. It’s also meriting to get in touch with the police and get a case number or reference if you intend on claiming for travel insurance.

tickStaying inactive: You’ll get hit by an inactivity charge when you’re no longer using the card. This can happen when you’re no longer on holiday. If there are long ranges where you won’t be utilising the card, you’ll likely to get fees due to inactivity.

tickReclaiming unused cash: If there is leftover holiday money, you can get charge for converting it back to sterling.

How Currency Exchange Rates Affect Prepaid Euro Cards?

When you load money on your card, the balance in euros will depend on the exchange rate. So, if you load £300 to your prepaid card:

tickWith an exchange rate of 1.2 euros to pounds, you’d get €360

tickWith an exchange rate of 1.3 euros to pounds, you’d get €390

The rate of conversion applies when you load your card. This means when there are changes in the rate, your balance in euros won’t be affected.

This is the reason why you must check for a good offer to ensure that you’ll get a better rate since exchanges rates frequently changes.

Where can you use prepaid Euro cards?

Most countries that accept Visa and MasterCard will likewise allow you to use prepaid Euro cards. However, there may be some deviations, including:

tickCar hire companies

tickPetrol stations

tickMotorway toll booths

You have to get in touch with your provider beforehand to determine if they can give you details about where you can and can’t use your card.

Moreover, it’s essential to recognise that various providers may not apply the same sorts of charges, and they could also differ on the costs you pay for each fee – hence you should always double-check the terms of your agreement so you understand exactly what you can do with your card to avoid any unexpected fees.