Find the best travel Credit Card for you

Credit cards are a handy piece of plastic in today’s society. Not only are you able to use credit cards in most corners of the world, but they offer you access to funds that you do not physically have. There are also many credit cards with travel rewards schemes that will attract any seasoned traveler’s attention.

There are six main types of credit cards on the market:

• Gold and platinum cards: offered only to customers considered to be a good credit risk with a high salary of £20,000+
• Donation cards: resulting in the card issuer making a small donation to a charity every time the card is used.

• Store cards: issued by a shop or retail chain that can only be used at this shop/chain.
• Charge cards: a hybrid credit/debit card.
• Company cards: operating the same way as charge cards but these cards are originally issued to a company or business who then issues them to staff.
• Student cards: offered to students by most banks but require customers to also join up to do their banking with the company.

Compare credit cards – Australian, New Zealand, South Africa, Canada and UK
Each credit card will have a number of different features. Here is a list of basic credit card features which you should be aware of to help you compare credit cards and find the best credit card for travel and one which will suit your lifestyle needs:

Feature	Description	Suitability	Card Type
Annual fees	A yearly amount deducted from your account for holding the card with the issuer	Cardholders interested in reward schemes	Usually attached to cards offering lower rates of interest or enticing reward schemes
Balance transfers	Allows you to roll over the balance from an existing credit card to a new credit card that offers a lower rate of interest. Fees apply	Cardholders with outstanding debts and are looking for a lower rate of interest	Most major cards
Cash back Credit Card	Cash back rewards offered on some products purchased at certain e-stores	Cardholders who regularly purchase goods from the nominated e-stores	Store cards
Cash withdrawals	Enabling cardholders to use a PIN number to withdraw money from the remaining credit at an ATM. A higher rate of interest is charged and interest free periods do not apply to this feature	Travelers	Most major cards
Charitable donations	Instead of reward points (see reward schemes below) points are accumulated and a donation is made to the nominated charity	Cardholders with a big heart	Donation cards only
Consumer protection	Protection against faulty products or services	Standard feature	Most major cards
Credit limit	A set amount you can spend up to	Standard feature	Applied to most credit cards
Interest	Money charged for outstanding amounts	Standard feature	All cards, but the rate of interest will vary
Interest free period Credit Cards	A short period of time when interest will not be charged on outstanding amounts. Usually an introductory offer only	Cardholders who plan to immediately purchasing expensive items	Some cards
Introductory rates	Zero to low interest rates charged. Offered to new cardholders for a short period of time	Travelers or cardholders who plan to immediately purchase expensive items	Some cards
On-line fraud guarantee	Offers cover against on-line fraud, as long as the cardholder has not been negligent with their card and details	Cardholders who regularly purchase items on-line	Most major cards
Credit Cards with Travel Rewards schemes	Points are rewarded at a certain rate for credit card transactions. These can then be cashed in	Travelers and big spenders	Most major cards, but the type of reward schemes and rate of points will vary between cards
Style	Most credit cards now come in a range of fashionable colours, shapes and sizes	Fashion conscious cardholders	Most major cards
Sweeper deals	Credit card debt can be offset against any savings accounts, reducing the interest charged	Cardholders that also have a savings account	Most major cards
Credit Cards with Travel insurance	Travel insurance provided for trips paid for in full with the credit card	Travelers	Some cards

Pre –paid travel cards
There is now another option available for travelers who may be sceptical about using their local debit or credit card in foreign countries. Especially designed for travelers (specifically traveler’s under the age of 30), pre-paid travel cards are pre-loaded with funds before you leave home meaning there is absolutely no chance of over drawing money and being stung with excessive interest fees.

Apart from this feature, pre-paid travel cards operate in much the same way as a regular debit/credit card and can be used to purchase goods (with all the usual foreign transaction fees), from retailers and to withdraw money from ATMs/cash point machines. If you have funds left on your card at the end of your travels you can choose to keep them on your card and top them up the next time you travel, or alternatively, withdraw the remaining cash from an ATM/cash point machine.

The only major drawback is, like any debit or credit card, if your card is stolen or lost it can take days to replace. It is a good idea to have a back up source of travel money just incase and always make sure you are aware of the transaction fees associated with any card before signing up.

For more information on pre-paid travel cards, visit major credit card websites or, if you are in the UK, visit your nearest Post Office as they now offer pre-paid travel cards in US dollars, euros or pounds.

Card Protection
When you sign up for a credit or debit card it is a good idea to enquire about card protection or card guard plans. This means that if your wallet with all of your cards is lost or stolen anywhere in the world, you only have to make the one call to cancel all of the cards you have registered. Replacement cards will then be requested immediately.

Most importantly, your loss will be minimised under this type of protection. In return, a small annual fee is paid. If you are notorious for losing or misplacing your wallet, you should look in to this coverage before leaving home.

Credit card fraud
It is very rare for a cardholder to have to foot the bill if any transactions are racked up on lost or stolen credit cards. However, it can be a time consuming process to be re-issued with a new card and, although the bank initially covers the cost of the fraud, they will ultimately pass these costs on to all cardholders through an across-the-board increase in fees and charges.

Here are a few helpful tips to ensure your credit card is safe at all times to avoid credit card fraud:

• Sign the back of new credit cards as soon as you receive them.
• Never leave your credit card or credit card statements lying around.
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• Keep your credit card in a secure section of your wallet or bag.
• If an older-style embossing machine has been used for a transaction, instead of the new electronic method, ask for all copies of the receipt.
• Try not to leave receipts at the bottom of plastic shopping bags as they might go unnoticed when you discard the bag and are therefore available for anyone to access.
• Always check your receipts at the time of transaction and discuss any discrepancies on the spot.
• Always ask about additional fees such as booking fees, delivery charges or taxes, when purchasing tickets and making on-line transactions.
• When making online transactions, never use an internet café or an unsecured internet connection and make sure the website offers a secure payment service. This will be indicated by a closed padlock icon at the bottom of the browser.
• Keep your receipts and check them off against your statement each month to make sure all transactions are accounted for.
• Avoid giving verbal credit card details over the phone as not only will the other person have your credit card details at their disposal, but you are also unable to monitor the transaction and will not have proof of the final price or any extra fees or charges that may be involved.
• Never put all your eggs in one basket. Make sure you have at least one other, completely separate bank account that is not linked to your credit card.
• If you card is lost or stolen, report it the credit card company immediately.
It is comforting to know that under The Consumer Credit Act of 1974 and the European E-commerce Directive 2002, all credit cards issued in the UK come with credit fraud protection. As long as you have not been negligent with your credit card and your credit card details, this means you will not be held liable for charges made.