While traveling internationally, a credit card is specifically designed for conveniently making payments in a foreign country. These cards can simplify payments, keep track of all transactions and offer savings opportunities, especially if you have a lifetime-free international credit card.
Understanding how these cards differ from other cards can be a smart financial move, if you travel abroad frequently. Before applying, you should know all its features, type of transaction allowed, credit card eligibility criteria and how to apply.
What Makes an International Credit Card a Good Idea?
Here are a few reasons why an international card rules over a regular card or cash payment when travelling abroad.
- Low Foreign Exchange Markup Fee: When you use an Indian credit card in another country, the transaction in the foreign currency is converted to Indian Rupees. Banks charge a fee for this conversion, called a foreign exchange (forex) markup fee. This is usually a percentage of the transaction amount. A lower percentage on an international credit card means you can save more on your expenses overseas.
- Travel-Specific Benefits: These cards are designed for travel and offer extra perks. This can include free access to airport lounges, which makes waiting for flights more comfortable. Travel insurance for things like lost baggage or medical emergencies abroad can also be a feature.
- Rewards on International Spending: Certain credit cards might give extra reward points or better cashback when used for international transactions. This can add value for frequent travellers.
- ATM Cash Withdrawals Abroad: Being able to withdraw cash from ATMs in foreign countries can be useful in emergencies. However, it’s good to know that cash withdrawals on credit cards often come with high fees and interest charges, so this should be used carefully.
- Global Acceptance: Cards associated with major networks like Visa or Mastercard are accepted at millions of locations worldwide, essential for seamless travel.
Understanding “Free” in “Free International Credit Card”
The term “free international credit card” can be understood in a couple of ways. Often, “free” refers to the card having no annual joining fee or yearly renewal fee. This is a great saving, but this doesn’t mean that other fees and charges will not apply.
However, for international use, the main cost to watch out for is the forex markup fee, as mentioned earlier. A card with no annual fee can still have a high foreign exchange markup fee (for example, 3% to 5% of the transaction value).
So, a truly cost-effective or “free” international card would ideally have no annual fee and a very low forex markup fee. Some cards now offer zero or very low (around 1%) forex markup, which is excellent for international spending.
Examples of Indian Credit Cards Suited for International Use
The Indian market has several credit cards that offer good features for international transactions. The specific cards and their benefits can change, so checking with banks directly for the latest information is always best. Here are a few types of cards generally considered good:
- Cards with Low Forex Markup: Banks offer specific cards that come with a zero or very low forex markup fee. For example, IDFC FIRST Wealth Credit Card and One Credit Card has a forex charge of 1.5% and 1%, respectively, compared to standard 3.5% charges.
- Travel-Focused Credit Cards: Cards like the HDFC Bank Regalia Gold or Axis Bank’s ATLAS Credit Card often provide good travel benefits, lounge access, accelerated reward points, dining benefits, and more. Travel-focused credit cards often provide complimentary airport lounge access. This access can be for lounges both within India and internationally. These cards also come with reward programs that can be converted into air miles, which are useful for travel discounts. Travel insurance is another benefit with these cards.
- Premium Credit Cards: Premium credit cards are exclusive cards offered by major banks. These cards are known for providing a wide range of travel-related benefits. Common perks include access to airport lounges, special assistance from concierge services, and great reward rates on spending done internationally. Examples include HDFC Bank Diners Club Black Metal Edition Credit Card and Axis Bank Privilege Credit Card.
Using credit cards internationally can be very convenient. However, you should inform your issuer about travel plans to ensure seamless transactions. To further make your international travel convenient, choose a card with low forex charges and a smart mobile app for full digital control.
The One Credit Card is one such card with features beneficial for a chronically online user who makes international trips frequently. It is a lifetime-free card, meaning it has no annual fees, making it a true free international credit card for a cost-saving option.
A key highlight of the One Credit Card is the OneCard app. It gives you complete control over your card. For instance, you can enable or disable international transactions directly from the app, adding a layer of security and control.
It also provides clear tracking of all spending, whether domestic or international, helping you manage finances and tracking all expenses. You can also plan trips with the OneTrips to get a personalised budget-friendly itinerary and the best deals on tickets and hostel booking.
Furthermore, the One Credit Card offers a smart 5X reward points on your top two spending categories each month. Find out more about the One Credit Card in the OneCard app or website, and apply now for your international trips.