Credit cards can be very useful – especially when abroad.
Often, they provide better exchange rates outside the UK than debit cards, along with other benefits.
It’s important to use them wisely, though. So, here we explore the key dos and don’ts on the subject.
Don’t: forget to notify your bank
You’ll no doubt want to prepare for your trip. So, don’t forget to notify your bank before you go away.
Credit cards, unfortunately, can often attract thieves. This is largely because they offer high spending limits, therefore banks tend to respond to fraud by suspending accounts whenever the device is used in an unfamiliar location.
If you don’t notify your bank where you are going, they could very well freeze your assets as a protection method, which would be inconvenient when it comes to paying for your lovely lunch.
Do: consider card acceptance
You may know this already, but some companies don’t accept certain credit cards. Why? Because some issuers charge higher fees than others.
Cards dispensed by creditors that do charge high fees are less likely to be accepted by merchants, especially independent shops and boutiques. This often applies to American Express cards.
Before you go away, make sure to consider this and see which cards would be best to take away with you for complete flexibility.
Don’t: lose track of spending
Holidays are for relaxing – but don’t lose track of spending in the process. If you do, you might be more inclined to rely on your credit card more than you should.
Transactions abroad typically add extra charges – as do card machine payments, so, you may want to limit credit card use while you’re away.
Try your best to stick to a pre-agreed budget and keep note of everything you are spending each day.
Don’t: lose track of scheduled payments
It may sound obvious, but many people forget about their direct debits and standing orders – particularly while holidaying.
Wherever you are, it’s worth keeping track of scheduled payments coming out of your accounts. If you don’t, you could face an unwanted surprise when you return home.
Do: regularly check your balance
It’s always a good idea to check your credit card balance regularly.
Chargesfor going over your limit can increase your monthly credit bill significantly, and few holiday makers want to return home to this issue.Remember to keep an eye on your accountto monitor what you have spent.
Thanks to mobile apps, you can do this wherever you are, provided there’s internet access. Just remember to use a secure Wi-Fi server. Through frequent checks, you should be able to spot any irregularities.
Holidays are designed to be fun, but they needn’t be expensive. Budgeting can be helpful, wherever you arein the world, so that you will be better able to secure your finances at all times.