Summer is synonymous with vacation, and if you’re in the 25 percent of Americans who plan to travel abroad this summer, making the right moves with your money could make or break your trip.
Is it better to use cash or credit cards?
You’ll want a combination of both. Cash in the local currency will be accepted everywhere, but you could lose it, or someone could steal it. Credit or debit cards have more security controls, but depending on where you are they might not be accepted as widely as cash. Some cards also have foreign transaction fees that you’ll want to avoid if you can.
Which credit card brand is your best bet?
From what I’ve found, Visa and Mastercard are accepted more places globally than Discover or American Express. I suggest looking at trends and availability for whatever country you’re visiting before you leave.
Advertisement
What about travel credit cards? Do I need one?
Opening a credit card doesn’t have to be a huge decision, as long as you’re paying it off in full each month and not accruing interest. If you find that the place you’re going doesn’t have a lot of coverage from your existing card companies, you might want to consider taking out another type.
Another thing you can do is get a pre-paid card that uses a brand that you know is accepted wherever you’re going.
You also might want to consider that many credit cards have big cash back or other rewards when you’re using them for actual travel expenses — think hotels, flights, rental cars — and you may be able to reduce the cost of your trip or future trips by picking the right card to use on those costs.
What else do I need to know?
Don’t forget to tell your bank or card issuer where you’re going. A charge from overseas without a warning could cause your bank to freeze your card.
Boston Globe Today airs Monday through Thursday at 5 p.m. on NESN and is available to stream on-demand at globe.com/bgt.
Segment produced by Segun Oduolowu and edited by Mike Gemme.
Andy Rosen can be reached at andrew.rosen@globe.com.
Essential money tips for Americans traveling abroad this summer
- Advertisment - 