Planning a trip overseas soon? While some people prefer the reassurance of having cash on hand when traveling, many find that credit and debit cards offer more convenience and security. They make it easy to pay for meals, day trips, and other vacation expenses. But it’s important to think about how you’ll access and manage your cash smartly while traveling.
Let’s dive into the comparison between credit and debit cards so you can figure out which option is best for your travels!
KEY TAKEAWAYS
Debit Cards:
- Acts like cash : Money comes out of your account.
- Good for budgeting : Limits spending to your account balance.
- Can be used at ATMs, but watch out for high fees.
- Cons: Risk of account hacking. Any fixes can take time if compromised.
Credit Cards:
- More spending flexibility with a credit limit.
- Convenient for payments, but easy to overspend.
- Cons: Cannot use at ATMs for cash. Potential hold on funds if lost or stolen.
Ideal Approach:
- Bring both cards for flexibility.
- Choose based on spending habits:
- Debit for budgeting.
- Credit for safety against fraud.
Fees:
- Be mindful of foreign transaction fees (2.75%-2.99%).
- Avoid extra cash withdrawal fees (usually 2.99%).
- Consider cards with no foreign transaction fees (e.g., Chase Sapphire Preferred® or The Platinum Card® from American Express).
