If you travel overseas often, you will know how tricky it can be to keep up with the different currencies. Don’t worry, by using the right credit card you can save more money and avoid hassles.

Use the Right Card When Travelling to be Rewarded

There are credit cards which give cardholders extra rewards when they use it during their travels.

Some credit cards will give additional discounts to the cardholders who book for their holiday with online travel agents. For example, HSBC offers discounts when cardholders make bookings through Expedia and Agoda. 

While certain credit cards offer extra rewards for overseas spending such as HSBC Premier World MasterCard. The card offers 10 times reward points on overseas hotel and dining along with 5 times reward points for spending on airline ticket purchase. 

You can also get flight tickets in exchange for spending with your credit card. The AirAsia-Citi Mastercard allows you to collect AirAsia points by spending with the card and then convert the points into BIG points to redeem flight tickets. Do take note that there are amount caps along with terms and conditions you need to understand to get the most savings with your credit card.

Use Credit Card to Enjoy Better Foreign Currency Exchange Rates

Keeping up with exchange rates to get the best offer can be tricky. Limit your usage of cash and save yourself time and hassle by using your credit card when travelling overseas. But in order to enjoy the competitive rates, you need to learn the difference between foreign transaction fee and dynamic currency conversion (DCC). 

When a transaction is made in a foreign currency, the transaction will be converted into ringgit using US dollars as the base currency on the date of the transaction received and then processed by card issuers as well as payment networks ( e.g: American Express, Visa, and Mastercard). 

There is usually a small foreign transaction fee on each transaction done with credit card while overseas, which ranges between 1% to 2%. Cardholders will also only be able to get a full view of their transactions including the exchange rate when they receive their monthly statement. 

As for DCC, the exchange rates are usually higher because it will be determined by the relevant merchant in the countries you travel to. So choose to pay in the country’s currency because foreign transaction fee is cheaper than DCC. 

Charge Flight Tickets to your Card to get Free Travel Insurance

You can get free travel insurance if you purchase your flight ticket with your credit card. Many credit cards now offer free travel insurance without cardholders realising. For example, the CIMB Visa Signature and Citi PremierMiles Visa Card offers complimentary travel insurance that covers cardholders up to RM500,000 and RM300,000 respectively for any personal accidents. 

The trick to enjoy all these perks is to choose the right card. With CompareHero.my, you can choose a credit card that will fit your requirements and your eligibility with just a click away, use the free comparison tool today.