Best credit cards for overseas travel

Occasional travellers are customers who are looking for a low-cost credit card to take on an overseas trip, perhaps as a once-off or once a year trip. Canstar’s researchers gave the following travel credit cards a 5-Star Rating in Canstar’s 2024 Travel Credit Card Star Ratings and Awards:

• BankVic Qantas Visa Credit Card
• Bankwest Breeze Platinum Mastercard
• Bankwest More Platinum Mastercard
• Bankwest Qantas Platinum Mastercard
• Bankwest Zero Mastercard
• Bankwest Zero Platinum Mastercard
• Bendigo Bank Ready Credit Card
• HSBC Low Rate Credit Card
• HSBC Premier World Mastercard – Qantas Rewards Option
• HSBC Premier World Mastercard – Rewards
• Hume Bank Value Card
• ING Orange One Low Rate Classic Card
• ING Orange One Rewards Platinum Card
• Latitude Financial Services 28 Degrees Global Platinum Mastercard
• St.George Bank No Annual Fee Visa
• Teachers Mutual Bank Credit Card
• Westpac Lite Card
• Westpac Low Fee Card

Regular travellers are customers who are looking for a fully featured credit card to use overseas on a regular basis or at least a few times per year. The following travel credit cards received a 5-Star Rating in Canstar’s 2024 Travel Credit Card Star Rating and Awards:

• BankVic Qantas Visa Credit Card
• Bankwest Breeze Platinum Mastercard
• Bankwest More Platinum Mastercard
• Bankwest More World Mastercard
• Bankwest Qantas Platinum Mastercard
• Bankwest Qantas World Mastercard
• Bankwest Zero Platinum Mastercard
• Bendigo Bank Ready Credit Card
• Commonwealth Bank Smart Awards – Qantas Option
• Commonwealth Bank Smart Awards – Rewards Option
• Commonwealth Bank Ultimate Awards – Rewards
• HSBC Low Rate Credit Card
• HSBC Premier World Mastercard – Qantas Rewards Option
• HSBC Premier World Mastercard – Rewards Plus Option
• ING Orange One Low Rate Classic Card
• ING Orange One Rewards Platinum
• Latitude Financial Services 28 Degrees Global Platinum Mastercard
• NAB Rewards Signature Card
• Westpac Lite Card

Yes, most credit cards can be used overseas. For instance, if you have a Visa or Mastercard credit card, it will be accepted wherever you see the Visa or Mastercard symbol. But it’s important to check the fees that apply when you use your card overseas, including currency conversion fees, cash advance fees and overseas ATM fees.

If you decide to use your everyday credit card overseas, it’s a good idea to let your credit card provider know. If you don’t, your provider may think your overseas transactions are suspicious and place a temporary lock on your card.

You don’t necessarily need a specific credit card when travelling overseas. A travel credit card, however, may be useful if you need to put down a security payment when hiring a car or booking accommodation. You could potentially also use your regular transaction debit card, a travel debit card or travel money card.

But it’s important to read and understand any potential overseas transaction fees that may be charged when using your card internationally. It may also be helpful to check how easy it would be to manage and access your account when you’re travelling.

If you decide to use your everyday card overseas, it’s a good idea to let your credit card provider or bank/financial institution know before you leave Australia. If you don’t, your provider may think your overseas transactions are suspicious and place a temporary lock on your card.

Otherwise, if you’re unsure whether you need a travel credit card, it can be worthwhile to weigh up the pros and cons.

Some of the pros and cons of using a travel credit card can include:

Pros

• Widely accepted – in Australia, most credit cards are issued by Visa, Mastercard or American Express. This means you can use your travel credit card wherever that payment network is accepted overseas.
• Extra features – depending on your credit card, you may be able to get extra features like complimentary travel insurance, airport lounge access, reward and frequent flyer points.
• More flexible budget – as you have access to a line of credit, you may be able to travel with a more flexible budget and cover any unexpected expenses that arise.

Cons

• Fees – you may be charged fees including annual, currency conversion, overseas ATM and cash advance fees.
• Interest – if you don’t repay your credit card balance in full by the due date, you will generally be charged interest.
• Temptation to overspend – you have access to a line of credit, so there is a potential temptation to overspend, compared to using a travel debit card or travel money card, for example.

When you use a credit card, you are borrowing funds from your credit card provider. You will need to repay the amount you borrow, plus any interest, fees and charges. Interest rates are not considered as part of Canstar’s Travel Credit Card Star Ratings and Awards, as a credit card can become an extremely expensive way to pay for a holiday if it is not paid off within the interest-free period. Instead, the ratings focus on the transaction costs and benefits of using a certain credit card product overseas.

If you want to access and spend your own money overseas, you could instead consider a travel debit card or travel money card.