If you want to avoid dealing with native currency or carrying traveler’s checks or cash when traveling abroad, look no further than an international credit card. Having such a card in your wallet that you can use both at home and abroad can make for smoother trips overseas.
Let’s take a closer look at what an international credit card is, their main features, and how to get an international credit card that’s right for you.
What Is an International Credit Card?
An international credit card is a credit card that you can use outside of the United States to make purchases and at an ATM. The major networks that issue international credit cards include Mastercard, Visa, Discover, and American Express.
However, having an international credit card doesn’t mean you can use it anywhere in the world. The countries where you can use a certain card depends on the network. For instance, Mastercard’s international cards can be used in over 210 countries, whereas Visa’s global network spans over 200 countries to date.
Features of International Credit Cards
Besides the fact that you can use the card overseas, let’s look at some of the other features an international credit card may have:
International Chip and Pin
International credit cards feature an international chip and pin. Chip cards, or EMV cards (which stands for Europay, MasterCard, and Visa), add an extra layer of security to transactions.
With the chip and pin feature of international credit cards, you “dip” your card into the reader, then insert your PIN. This differs from in the U.S., where EMV cards come with chip-and-signature technology, which means you insert your chip, then input your signature. Chip-and-pin is the standard everywhere else and, as such, this is what international credit cards offer.
An international credit card might have a welcome offer, which features an attractive introductory bonus. Typically, with how credit cards work, you’ll need to spend a certain amount on the card within the first few months of opening your account in order to earn the bonus. The amount you’ll need to spend, the time frame in which you’ll need to do it, and the number of bonus rewards points you can earn will vary by card.
Some international credit cards come with attractive travel perks, such as trip cancellation insurance, rental car insurance, and lost luggage insurance. They might also feature access to exclusive airport lounges around the world.
To qualify for an international credit card with some of these luxury perks, however, you’ll usually need to have a good or even excellent credit score (meaning 670 or above).
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While many credit cards come with the ability to scoop up rewards points, international credit cards might offer a higher rewards rate for travel-related purchases. This might include hotel stays, car rentals, dining out, and booked flights. For example, you might get 5x points on these travel-related purchases, whereas other purchases earn 1x points.
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Credit Card Foreign Transaction Fees
An international credit card might come with a foreign transaction fee, which is a fee that applies when you make a payment with your card in another country. This fee is typically 3% of the total cost of the purchase, and it is charged in U.S. dollars. For example, if your total purchase came to $50, then the foreign transaction fee would be $1.50, for a grand total of $51.50.
If you’re not careful, foreign transaction fees can easily take a bite into your travel budget. Some international cards might not charge foreign transaction fees, which can put money back into your pocket and help you avoid credit card debt that’s hard to get rid of.
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How to Get an International Credit Card
To get an international credit card, follow these steps:
1. Do your homework to see which cards are most attractive to you. Which have the best perks, lowest fees, and most enticing rewards?
2. You’ll also want to see which cards you can qualify for. By checking your credit score, you can better determine which cards you might get approved for.
3. Apply for a credit card. The process of how to apply for a credit card is similar whether or not it’s an international credit card. You’ll usually need to provide basic personal and financial information, such as your Social Security number and details on your income.
4. Once your application is submitted, the credit card issuer will do a hard pull of your card to determine your creditworthiness, which helps inform whether your limit will be above or below the average credit card limit. Be aware that a hard pull will likely result in a temporary ding to your credit.
5. Find out if you’re approved. If you are, you can expect to receive your new card in the mail in seven to 10 business days. Your card will have a unique account number as well as the CVV number on a credit card.
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How to Choose the Best International Credit Card
What’s the best international credit card for you will depend on a handful of factors. Specifically, you’ll want to consider:
• Where you’ll be traveling. Are you planning on using your card on business trips and frequent certain countries for work? If so, there are certain countries or parts of the world where an international credit card may be more widely accepted. Additionally, different cards may be accepted in different locations.
• Rates and fees. Look to see what the APR on the credit card will be. If you plan on keeping a balance out of necessity, it’s particularly important that you have a good APR for a credit card. The lower the APR, the less you’ll pay in interest when you carry a balance. Also take a look at any other fees that may apply with the card, such as annual fees, late fees, cash advance fees, and, of course, foreign transaction fees.
• Perks and rewards. Not all credit cards are equal when it comes to the perks and rewards they offer. It’s easy to be dazzled by attractive travel-related perks, but make sure they’re ones you’ll actually use. Also look at the earn rate for different categories, and see if the categories with the higher earn rates are in line with your spending habits.
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Pros and Cons of Using an International Credit Card
International credit cards have pros and cons, both of which are important to weigh.
|Pros of Using an International Credit Card||Cons of Using an International Credit Card|
|Less hassle when traveling||Fees|
|Opportunity to earn rewards||Might not be accepted everywhere|
|Travel perks||Need to plan ahead to maximize perks|
Pros of International Credit Cards
• Less hassle when traveling: Perhaps the top advantage of using an international credit card is that you won’t need to fuss with native currency or carrying around cash or traveler’s checks. Plus, if something were to go amiss, you have the usual credit card protections in place, which could allow you to dispute a credit card charge or request a credit card chargeback.
• Opportunity to earn rewards: Many international credit cards allow you to earn rewards for your everyday spending. Plus, some may offer higher rates of rewards for travel-related spending, which could be a big benefit for frequent travelers.
• Travel perks: As mentioned before, international credit cards can come with a host of travel-related parks. For instance, international credit cards may offer trip cancellation insurance, car rental insurance, and free upgrades on hotels and flight bookings, to name a few.
Cons of International Credit Cards
• Fees: Some international cards have high annual fees, though these may translate to more attractive perks. You’ll also want to look out for foreign transaction fees, as these can quickly add to your costs when traveling.
• Might not be accepted everywhere: Not all retailers within a country may accept payments with an international credit card. Some retailers might still only accept the local currency or certain payment methods. Additionally, international credit cards’ networks may not include particular countries.
• Need to plan ahead to maximize perks: While international credit cards might come with some nice travel benefits and perks, it can take a bit of work and planning to make the most of them. For instance, if you want to rake in the bonus offer, you’ll need to plan for some big-ticket purchases to put on your card within the first few months of opening it. Or, if a card features a travel credit that expires each year, the clock is ticking to use that benefit. This all could incentivize you to overspend, leaving you in a scenario where it’s hard to pay off more than the credit card minimum payment.
Having an international credit card in tow while traveling overseas can eliminate the hassle of dealing with foreign currency or carrying cash. When looking for a good that suits your needs, it’s important to weigh the perks against the downsides, particularly the fees involved.
If you’re shopping for a travel credit card, the SoFi credit card doesn’t charge foreign transaction fees. For a limited time, new credit card holders who also sign up for a SoFi Checking and Savings with direct deposit can start earning 3% cash back rewards on all eligible credit card purchases for 365 days*. Offer ends 12/31/22.
Find out if this card suits your travel needs and apply for the SoFi credit card today.
Learn more about the SoFi Credit Card.
Can I use my credit card internationally?
Yes, with an international credit card, you’ll be able to use your card outside of the U.S. Exactly which countries you can use your card in will depend on the network. For instance, MasterCard’s global network includes more than 210 countries, while Visa’s network includes over 200. International cards are also available in the Discover and Amex networks, but with a more limited number of countries.
Should I withdraw cash with my international credit card?
While withdrawing cash from an international credit card is an option, note that doing so often comes at a cost. On top of the foreign transaction fee, which hovers at around 3%, there’s also a fee that applies to cash advances. Plus, cash advances tend to have a higher APR, and interest will start accruing immediately, as there’s no grace period on cash advances.
How can I find out which countries accept a given card?
Check the credit card network’s international use network to determine which countries you can use your card in. You can find this on the credit card network’s website.
Do I have to pay fees annually for an international credit card?
Some international credit cards do have an annual fee. Do your homework ahead of time to see what the annual fee is, and if the perks will offset the costs. Other costs you want to check include foreign transaction fees, cash withdrawal fees, and late fees.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s
The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
1See Rewards Details at SoFi.com/card/rewards.
You will need to maintain a qualifying Direct Deposit every month with SoFi Checking and Savings in order to continue to receive this promotional cash back rate. Qualifying Direct Deposits are defined as deposits from enrolled member’s employer, payroll, or benefits provider via ACH deposit. Deposits that are not from an employer (such as check deposits; P2P transfers such as from PayPal or Venmo, etc.; merchant transactions such as from PayPal, Stripe, Square, etc.; and bank ACH transfers not from employers) do not qualify for this promotion. A maximum of 36,000 rewards points can be earned from this limited-time offer. After the promotional period ends or once you have earned the maximum points offered by this promotion, your cash back earning rate will revert back to 2%. 36,000 rewards points are worth $360 when redeemed into SoFi Checking and Savings, SoFi Money, SoFi Invest, Crypto, SoFi Personal Loan, SoFi Private Student Loan or Student Loan Refinance and are worth $180 when redeemed as a SoFi Credit Card statement credit.
Promotion Period: 4/5/2022-12/31/2022. SoFi reserves the right to exclude any Member from participating in the Program for any reason, including suspected fraud, misuse, or if suspicious activities are observed. SoFi also reserves the right to stop or make changes to the Program at any time.
Eligible Participants: All new members who apply and get approved for the SoFi Credit Card, open a SoFi Checking and Savings account, and set up Direct Deposit transactions ("Direct Deposit") into their SoFi Checking and Savings account during the promotion period are eligible. All existing SoFi Credit Card members who set up Direct Deposit into a SoFi Checking & Savings account during the promotion period are eligible. All existing SoFi members who have already enrolled in Direct Deposit into a SoFi Checking & Savings account prior to the promotion period, and who apply and get approved for a SoFi Credit Card during the promotion period are eligible. Existing SoFi members who already have the SoFi Credit Card and previously set up Direct Deposit through SoFi Money or SoFi Checking & Savings are not eligible for this promotion.
New SoFi Checking and Savings customers and existing Checking and Savings customers without direct deposit are eligible to earn a cash bonus when they set up direct deposits of at least $1,000 over a consecutive 30-day period. Cash bonus will be based on the total amount of direct deposit. Entry into the Program will be available 4/5/22 to 5/31/22. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC.
SoFi members with direct deposit can earn up to 1.80% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). Members without direct deposit will earn 1.00% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. Rate of 1.80% APY is current as of 07/26/2022. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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