Credit Card Deals and How They Match Up to Other Forms of Money

For people that travel abroad, the whole experience is already well known and many people like to say that traveling is an experience they'll never grow out of. Part of traveling is planning and taking advantage of travel discounts (like hotel rewards and frequent flyer miles) in combination with choosing the right kind of money to take with you will take you one step closer to getting that unforgettable vacation experience.

When we talk about types of money, we're not referring to different kinds of currency (although naturally it should go without saying that you would want some of the local currency with you). Instead what we're talking about is the form that the money takes. For people who have found some great credit card deals (and there are some good credit card deals for travelers, which will be discussed later), the form will be their credit card. Other travelers might prefer their ATM card and many travelers also use travelers cheques.

What to Look for in your Money Option

There are four major things to look for when choosing which option is right for you. Firstly, you'll need to look at exchange rates. Some of the best credit card deals that you can get locally offer horrendous exchange rates abroad and this is a function of regionality and the fact that not all credit cards are universally recognized. Even worse might be that your local credit card (that you were told was a one of the great US credit card deals) could not even be accepted abroad!

So exchange rates are definitely important. As implied in the last sentence of the previous paragraph, convenience is also an important aspect to look at. Top credit card deals locally might be cards that actually aren't accepted in very many places internationally, so arm yourself with this knowledge before traveling. It will save you much hassle later on.

The two other major things to consider are safety and saving money. New credit card deals with lower interest rates might seem appealing at first, but when you're traveling you need to consider being able to pay your bills as well as protecting against theft and eventual fraud. It's easy to find a great credit card deal, but much harder to find an ideal one for your specific travel needs.

This might all seem a little annoying to you, but just remember that this little headache earlier could potentially save you a big headache later. All it takes is one accidental leaving of your wallet on a table or one clip of your purse strap to turn your dream vacation into a nightmare. Preparing yourself beforehand by taking the proper things with you can go a long way to at least reducing the damage an event like that may cause.

Form of Payment Number 1: Have Cheque, Will Travel

In terms of numbers, traveler's cheques are probably still the most popular form of money taken by travelers. Banks will create traveler's cheques for a miniscule commission (usually around 3% give or take a couple of percentage points) and might even consider waiving the fee if you do a lot of banking with them already.

One of the reasons that traveler's cheques are so popular is that if they are stolen, then you can easily replace them with little hassle and almost no stress. If you go to a website and compare credit cards, you will find that this isn't always the case with other methods of payment.

Some traveler's cheques like the American Express brand are internationally accepted, making them just about as convenient as cash. Some will even allow you to get the same benefit out of them are you might out of a frequent flyer credit card or other frequent flyer program. This is relatively rare, but worth checking out.

There are a few drawbacks to traveler's cheques, which is why they aren't the universal choice for people going on vacation or traveling for business reasons. Many small stores or even larger ones in relatively rural areas may not accept traveler's cheques, so many people end up having to exchange them for cash at the bank if they want to visit certain places in a country. Additionally, traveler's cheques are often exchanged at poorer rates than other methods of payment. And finally, some brands lack incentives like a credit card reward program, and since the vacation is usually a time of great money spending, people can miss out on other incentives by exclusively using traveler's cheques.

Form #2 - Debit Cards

Foreign exchange rates that have always been known to come along with the best secured credit card deals are also available through the use of your debit card, the reason being that both credit and debit cards can utilize the higher exchange rates available to banks through their wholesale exchanging of currencies.

As time goes on, these cards are starting to become more widely accepted around the world and gain more international exposure. In some places, they already rival business credit card deals in terms of their acceptance, which says a lot about merchants worldwide. Convenience is also a huge positive for debit cards, as you can use an ATM to get cash at a great exchange rate, even when banks are closed.

Just like traveler's cheques, debit cards to have drawbacks. The first major one is that they are a less secure method of payment than credit cards or traveler's cheques. Losing a traveler's cheque is nothing more than an inconvenience, while if you do a good job to find best credit card deals for travel, then they most likely offer insurance buffers against fraud with a stolen card. However if you lose your debit card and aren't quick enough to report the loss, you might loss everything in your chequing account.

Form #3 - A Credit to its Name

Not too long ago, it was considered ill-advised to take anything but traveler's cheques on a trip. Now with all the changes that credit card companies have brought around and all the new introductions they've made (think about things like the instant approval credit card, the airline miles credit card and all the different frequent flyer credit card deals and you'll be well on your way to understanding the recent surge in popularity), credit cards have become a very popular choice of people traveling abroad.

One great aspect of credit cards is that they are now about as accepted worldwide as traveler's cheques. This means that you can take your favorite gasoline credit card or hotel credit card abroad and still have a wide variety of retailers that will accept it.

In addition to acceptance and convenience, there are also the incentives to consider. Many credit cards offer great incentive programs (like all gasoline credit card deals, airline credit card deals and hotel reward credit cards). With the rising prices of things like gasoline, credit cards like the shell gasoline card have become extremely popular and the fact that people can now take these cards abroad and gain credit for those purchases sits very well with many potential travelers.

Versatility is another great example of credit cards. They can be used at banks to acquire local currency at very favourable exchange rates as well as used for many purchases outside of a bank. In addition if credit cards are stolen, most companies have a policy that allows you to not be held responsible for more than $50 in charges that are a result of credit card fraud. Additionally, every purchase is recorded automatically on your record, so you don't have to do any painstaking record keeping.

Credit cards also have some disadvantages. They are not accepted everywhere and almost everything you do with them comes with a fee of around 1 to 2 percent. Psychologically speaking, it also easier to exceed your vacation budget through the use of a credit card, as impulse purchases can quickly add up when you are not directly keeping tabs on the amount being spent.

So Which One Should You Use?

The answer, as always is that it depends. Where are you traveling? Where are you staying? What are you doing? All of these questions are extremely pertinent and can be the difference between looking for the best credit card online deals or writing out a request for traveler's cheques from your bank.

Many people have gotten used to using credit cards for things like a gasoline credit card rebate and for this reason want to use their gasoline company credit card abroad. There's nothing wrong with this, just be sure that your needs are best met by the use of a credit card rather than a debit card or traveler's cheque.

Sit down, take a good and long look at your vacation and then decide which the best method to use is. Consider all the factors and weigh the advantages and disadvantages that have been discussed in this article. Once you've done that, then you're ready to pick out which method will work for you.