There are different ways to use credit cards and that depends on the purpose of the card holder. Most people get a credit card with something in head, they may be thinking about buying things online, transferring balances or maybe buying outside of the US.
If you are looking to get a credit card and your idea is to buy things outside of the US (maybe because you are traveling or because you are going to live some time outside of the country) you should look for credit cards with no foreign transactions fees because that will allow you to reduce the cost of transactions.
But, you should also look for credit cards with no foreign exchange fees (especially if you are going to make purchases in a country with a different currency than US Dollars) because card providers will charge a fee to convert the foreign currency into US Dollars. In this article we are going to talk about the best credit card for foreign transaction (no foreign transaction fee).
¿What are the best credit cards for foreign transactions?
In first place we have Chase Sapphire Reserve which is very popular because it doesn`t have foreign transaction fees and it is designed for travelers. You will win 3x points on al travel spending including hotels, car rentals and dining purchases; but will also get one point for every dollar that you spent in other things. With this card you have a $300 travel credit and a Priority Pass Select membership. This card has a variable APR (17.99% – 24.99%). However, the annual fee is high ($450) but it is compensated with the benefits of the card.
In second place we have Capital One Venture Rewards Credit Card which has a variable APR (15.24% – 25.24%) and there is no foreign transaction fee. There is no annual fee for the first year but it will be $95 after that. If you spend more than $3,000 during the first 3 months with the card you will have a 50,000 miles bonus which is equal to $500 in travel.
This is one of the best credit cards for traveling because it lets you win points for making purchases with it. There is a 3% fee over cash advance transactions and there is no fee for balance transfers. However, you will need a good credit score and good credit history to get a card like this.
In third place we have Bank of America Travel Rewards Credit Card which doesn`t have foreign transaction fee and the APR is variable (16.99% – 24.99%). However, there is a 0% introductory APR for the first 12 months with the card and there is no annual fee. If you spend more than $1,000 during the first 3 months with the card you will get 25,000 points ($250) to buy things while traveling. You can get 10% more points if you have a saving account in Bank of America (if you are a Preferred Rewards clients you will be able to get a 25 – 75% bonus). You will win 1.5 points for every dollar you spent on any purchase.
In fourth place we have Discover it Cash Back which has a low APR (13.99% – 24.99%), there is no annual fee and there is no foreign transaction fee which makes it ideal if you are not a frequent traveler and you need a card with low annual fee to use it just when traveling.
There is an introductory 0% APR during the first 14 months with the card, the balance transfer fee is 3% and you will need an excellent credit score and credit history to have this card. You will have 5% cash back on purchases in gas stations, grocery stores, Amazon.com, restaurants and other ones. There is also free monthly FICO credit score access and you will be able to freeze your account if the card gets lost or stolen.
In fifth place we have The Business Platinum Card from American Express which is ideal for frequent travelers. It has a high annual fee ($450) but it is compensated with the benefits and rewards of the card. When you get the card you are able to get a bonus for up to 75,000 points in Membership Rewards and if you spend more than $10,000 during the first 3 months you will get 50,000 points and if you reach $20,000 during the first 3 months then you will receive an extra 25,000 points.
You get 1.5 points for every dollar that you spend. You can get 35% points back if you travel in Business or First class in any airline available in American Express Travel. This credit card also offers purchase protection, global lounge access, concierge service and other benefits.
Last we have Wells Fargo Business Secured Credit Card which is one of the best secured credit cards for foreign transactions. The APR is a prime + 11.90% and the annual fee is $25 but there is no foreign transaction fee. If you are a new customer then you will get 1.5% cash back.
The credit line goes from $500 to $25,000 and you get zero liability protection for unauthorized card usage. You also have access to spending reports online which allows you to know when the card is been used without your authorization. In this credit card the credit line is equal to your security deposit.
In summary, there are plenty of options in the credit card market. If you are looking for a credit card focused in foreign transactions then you should look for no foreign transaction fees and no foreign exchange transaction fee because that will allow you to save money. If you want to know more information about it, feel free to make your own research online and you will find useful information. Make sure that you have all the documentation and the credit score needed when you apply for a credit card.