Should You Get a Credit Card Before Going Abroad?

Credit cards may be a touchy subject for some people. But is it recommended before you go abroad? As someone who studied abroad and then taught abroad in Madrid, my answer is yes! I will explain why obtaining a travel credit card while being abroad can be beneficial for individuals going abroad. Disclaimer: I am not a financial advisor; I am simply a girl who enjoys traveling a lot and saving money while doing so. It is also important to note that regular credit cards differ from travel credit cards, which are the credit cards I will be discussing. 

Foreign Transaction Fees

It is rare for debit cards to have no transaction fees, so it is reasonable to assume that everyone should use a travel credit card to save money when traveling in their host country or other nearby countries. If you are unfamiliar with foreign transaction fees, they are fees you pay to your bank for paying in a different currency, typically as a percentage of each purchase. This number adds up especially for those going abroad for a year. To avoid these, you need to have a plan in action, and a good travel credit card will have zero transaction fees, saving you hundreds!

Travel Insurance

Many travel credit cards include coverage for trip delays when you use their card to book flights. It is essential when you are making international travel overseas, as different cards can cover cancellations, lost or delayed baggage, and sometimes even medical emergencies. Such credit card companies have better insurance policies than others, so it's important to research all of them before committing to one. 

Cash Back for Flights (& Other Things)

When you first sign up for a card, they will offer a large bonus of points or miles after you meet a spending requirement shortly after opening the account. These points can be used as cash back, but you will go a long way if you use them on flights. Once I bought a one-way ticket to San Fransico from Madrid for only $175, including a checked bag, because I had accumulated points from the year. You can earn rewards on your everyday purchases that can be redeemed for flights, hotel stays, car rentals, and other travel expenses.

Financial flexibility

The best part about having a credit card in general is the financial flexibility it provides. Sometimes things happen, and you need extra money, or you end up taking more trips than you anticipated. Whatever it is, having a credit card is great for emergencies and unexpected events. If it is your first time going abroad, it is tough to know how you will spend your money and the prices of things, given that the currency rate is always changing. 

I have the Chase Sapphire Preferred, and as much as I love it, I highly recommend everyone to do their own research on travel credit cards. If you enjoyed this blog and are interested in getting extra points from opening a Chase Sapphire Preferred account, check out my personal blog for more details: https://idalisvallejo.blog/resources/