Is world travel on your horizon this year? Bringing the right credit card is as fundamental as packing the right wardrobe. While there are great benefits to using plastic abroad – such as travel assistance and fraud protection – the cards’ foreign transaction fees can eat into your travel budget. And traditional magnetic strip credit cards aren't universally accepted overseas anymore. Picking the right card for a foreign trip depends on the perks you’re looking for, the fees you’re willing to pay, and the kind of credit you have. Here are Credit Karma’s Top 5 credit cards for world travel:
Why we recommend it: Most credit cards have foreign transaction fees that add 1 to 3 percent to every transaction made abroad. If you plan to swipe often or for big ticket items, those fees quickly add up. The Capital One Platinum Prestige Card is a great choice for travelers, featuring no-hassle perks and no annual fee. Capital One is the only major issuer that doesn’t charge foreign transaction fees and you'll see a few Capital One cards on this list. In addition to no foreign transaction fees, the Platinum Prestige card offers 0 percent interest until September 2012 on balance transfers and purchases, so you can save money on interest charges if you have a large balance after vacation. Plus, the interest rate resets to a low 10.9 percent APR, which makes its it an all-around good credit card for everyday spending at home as well as your go-to credit card for world travel.
Drawbacks: You need an excellent credit score to qualify for this credit card.
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