Best Credit Cards for International Travel for January 2020

If you’ve got the travel bug and are looking for the best credit card to use while you’re abroad, this guide will help you score travel-related benefits, all while maximizing your rewards and minimizing your fees. From big sign-up bonuses and luxury perks to trip insurance and worldwide acceptance, here’s how to pick the best credit card for your next international trip.

^{The United Explorer Card and Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® credit card have not been reviewed by the issuer and card details may be out of date.}

Even with the rise of credit cards as a form of payment around the globe, some credit cards are more widely accepted than others. This depends on the credit card network rather than the bank that issued the credit card. The four major credit card networks are Visa, Mastercard, American Express, and Discover.

American Express and Discover fall behind the two biggest networks, Visa and Mastercard, in terms of acceptance -- especially outside of the United States. Visa and Mastercard are comparable in terms of acceptance, but Visa is still the most widely issued credit card.

It’s easy to rack up credit card fees while you’re traveling abroad without even noticing it. The biggest one to avoid is the foreign transaction fee. Most credit cards with foreign transaction fees charge 3% of every purchase, which means that you rack up $30 in fees for every $1,000 you spend while abroad. Luckily, none of the credit cards on our list charge foreign transaction fees.

You’ll also want to watch out for dynamic currency conversion. This costly mistake catches most people off guard, and it has nothing to do with your credit card issuer. If a merchant in a foreign country asks you if you’d prefer to pay in the local currency or in dollars, always pay in local currency. Opting to pay in dollars means the merchant will have to convert the transaction total, and they’re not usually going to give you an ideal conversion rate.

In addition to minimizing fees, the best travel credit cards help you stay in budget while traveling by offering comprehensive benefits and protections. Here are the best money-saving credit card benefits to look for when traveling internationally.

• Sign-up bonus -- Aim for credit cards with generous sign-up bonuses, but make sure you can meet the minimum spend required to earn the bonus. This will give you a solid boost if you’re collecting rewards for an upcoming vacation, as many sign-up bonuses are big enough to cover one (sometimes two) round-trip flights.
• Rewards rate -- You also want to pay attention to the rewards rate you’ll earn on your regular spending to determine whether or not the credit card brings value past earning the sign-up bonus. Choose credit cards that offer higher rewards rates (think 3 points per $1 spent on select categories), but also make sure that the bonus spending categories are in line with your spending habits.
• Redemption options -- Some travel credit cards let you redeem your points through a travel portal, where you can make a wide variety of travel purchases using points. Sometimes, you can even transfer these points to a number of travel partners, which really increases the flexibility of your redemption options. Others offer statement credits that can be applied to travel-related purchases. Meanwhile, airline-specific credit cards allow you to redeem your miles for flights with that airline. Figure out what your goal in collecting rewards is first, and that will help you decide which redemption options to seek out.
• Point value -- Not all rewards points are created equal. One credit card might offer a larger sign-up bonus than another, but that doesn’t necessarily mean it offers more value. Some rewards points are valued at $0.005 each while others are valued at $0.02 each. Do some research to figure out the true value of the rewards you’d be earning.
• Rental car insurance -- All of the credit cards on this list offer some type of rental car insurance. Having collision damage and theft insurance covered by your card can save you a significant amount of money the next time you rent a car. Some credit cards offer secondary rental car insurance, which if you’re traveling in the U.S., only kicks in after your personal insurance is used. If you’re traveling internationally, secondary insurance usually becomes primary insurance as your personal insurance doesn’t apply at all. Still, primary insurance is ideal. You’ll need to pay for the rental car with your credit card in order to be covered.
• Delayed and lost baggage insurance -- If your credit card offers delayed and lost baggage protection, this means that if your baggage is ever delayed or lost, you can submit a claim to have expenses you’ve incurred during the delay or lost items you had to replace reimbursed.
• Trip cancellation insurance -- If your trip is canceled or interrupted due to eligible unforeseen circumstances, your credit card may reimburse you for any non-refundable reservations you’ve already made, such as flights and hotels. You have to have made the reservation on your credit card.