Benefits of Credit Card When Travelling Abroad for Holidays

Posted on Wednesday, November 6th, 2024 | By IndusInd Bank

Travelling abroad for holidays is an exciting opportunity to explore new cultures and experiences. However, managing expenses in a foreign country can get challenging. This is where a credit card becomes an essential travel companion. 

From offering ease of payments to exclusive travel perks, the benefits of credit cards during international travel are vast. They offer convenience, security, and rewards for travellers of all kinds. Let’s dive deep into the benefits of using a credit card for holidays, and other related aspects. 

How Can Credit Cards Benefit You During Overseas Travel?

When travelling abroad, using a credit card for holidays offers several advantages:

Currency Convenience

One of the most significant credit card advantages during travel is the ease of automatic currency conversion. Instead of carrying cash in a different currency, travellers can use their credit cards for purchases. The transaction amount is automatically converted at competitive rates. 

Rewards and Cashback

Using a credit card for holidays can help you earn reward points on every purchase. This is especially relevant for travel-related expenses. Many travel credit cards offer points that can be redeemed for flights, hotel stays, or cashback. 

For instance, with IndusInd Bank’s Avios Visa Infinite Credit Card, you can earn milestone benefits via Avios points. You can redeem these points for flight tickets, hotel bookings, car rentals, and much more. 

Airline-Specific Perks

Some credit cards, such as the IndusInd Bank Avios Visa Infinite Card, offer airline-specific benefits. This can include bonus miles, priority boarding, and additional baggage allowance. These perks can make air travel more comfortable and rewarding, especially for frequent flyers.

Access to Airport Lounges

One of the premium credit card advantages for foreign travels is complimentary airport lounge access. Cards like the IndusInd Bank Legend Credit Card offer this perk. With this benefit, travellers can enjoy complimentary snacks, drinks, and services at the airport lounge as they wait for their flight. This allows travellers to relax and enjoy refreshments while waiting for their flight. 

Discounted Foreign Currency Markup

Travellers often encounter foreign transaction fees when using their credit cards abroad. IndusInd Bank provides credit cards with competitive foreign currency markups. This can allow users to save on these additional charges. 

Travel Insurance

One of the lesser-known benefits of credit cards is the built-in travel insurance. It covers various travel-related incidents, such as flight delays and missed connections. IndusInd Bank’s Platinum Credit Card offers complimentary travel insurance. This can add a layer of protection during your holiday.

By choosing the right credit card for holidays, you can unlock several travel-specific benefits and make your international travel seamless and cost-effective. IndusInd Bank offers a range of Credit Card options to not only ease your travels but make it even more rewarding! 

Also Read: How to Choose the Best Credit Card with Airport Lounge Access

What to Know Before Using Credit Cards in a Foreign Country?

The benefits of credit cards are many. However, there are a few essential things to keep in mind before using your card abroad to ensure a smooth experience:

Foreign Transaction Fees

Some credit cards charge a foreign transaction fee for purchases made outside your home country. This fee can range between 1% to 3% of the transaction amount. To avoid these fees, choose a card that offers a discounted markup. 

Dynamic Currency Conversion

When transacting abroad, you get the option to pay in your home currency instead of the local currency. This is known as dynamic currency conversion (DCC). While this might seem convenient, the DCC often results in unfavourable exchange rates. It is advisable to choose the local currency when making purchases to avoid hidden fees.

Inform Your Bank

It is advisable to inform your bank about your foreign travel plans. This helps avoid potential blocks on your account because of suspicious activity when charges appear from a foreign location. 

Monitor Exchange Rates

Keeping a check on exchange rates can help you get the most out of your credit card advantages when making purchases abroad. You can use real-time currency conversion alerts or tools to make more informed decisions.

Coverage Against Card Loss/Theft

Losing or getting your credit card stolen during a foreign trip can be frustrating. The fear of unauthorised transactions can loom high and disrupt your well-planned trip. To avoid this, opt for a credit card that comes with insurance coverage against such unforeseen events. 

Conclusion

The benefits of credit cards are numerous, especially when used during international travel. It can simplify currency conversion and offer exclusive perks like lounge access and travel insurance. By understanding the benefits and noting the essential points, you can choose a card that suits your needs and enjoy a hassle-free and rewarding travel experience. 

Planning your next holiday abroad? Apply Now for a Credit Card with IndusInd Bank today!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.