For students in college who are thinking about “studying” (yeah right!) abroad, those students must also consider the cost involved. What is the best way to pay for all of your day to day expenses while abroad? Is it wise to carry tons of cash with you while you travel? And what’s the deal with currency exchange and other hidden fees that YOU could be charged if you travel abroad? Well that’s what this article covers. Read on!
For students or anyone who has a credit card and plans to use that card to make purchases while traveling in a foreign country, you should be aware of what’s known as a currency-conversion fee (usually 2 or 3%). A currency-conversion fee is simply the fee that you’re charged since the currency has to be transferred to the correct type in order for the purchase to be complete. You’ll be charged this fee anytime you use your credit cards while abroad and anytime you withdraw money from your bank account while in another country. Capital One credit cards do not charge a currency conversion fee, making those cards your cheapest way to use a credit card while abroad. But don’t just sign up for any credit card. Do your research. Hopefully, if you are towards the end of your college years, you already have a secured credit card a decent credit score. If not, you may have difficulty in obtaining a credit card to use for your overseas trip, since you have no credit score or history. And with the new laws that go into effect in February 2010, all credit card customers under age 21 will need a co-signer on the account.
Also, cash advances (when you borrow a small amount of your credit limit) are not a very good option, especially while abroad, due to the interest and other hidden fees that accompany cash advances.
Before you leave for your trip, call your credit card company to inquire with them regarding the specifics of all the different types of fees you’ll be subject to while overseas.
Credit cards can be an easy way to pay for things while away in another country. Just be careful of all of the fees involved. If you lose your credit cards while away, simply notify your credit card companies.
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