If you’re planning on travelling overseas, it’s important to have the right credit card to make the most of your spending. With so many options available, it can be difficult to know where to start. That’s why we’ve put together this guide to the best credit cards for overseas spending in Singapore.
In this guide, you’ll learn everything you need to know about credit cards for overseas spending, including how to evaluate rewards and benefits, top credit cards for overseas expenditure, strategies for minimising fees and charges, smart spending tips abroad, maintaining security and managing risks, eligibility and application insights, and maximising savings and earnings. Whether you’re a frequent traveller or just planning a one-off trip, this guide will help you choose the right credit card to suit your needs.
So, whether you’re looking for a credit card with great rewards and benefits, or simply want to minimise fees and charges while travelling abroad, this guide has got you covered. With our expert insights and insider tips, you’ll be able to choose the perfect credit card for your next overseas trip.
Understanding Credit Cards for Overseas Spending
Travelling abroad can be an exciting experience, and having the right credit card can make it even more enjoyable. When it comes to overseas spending, it’s crucial to find a credit card that offers favourable terms and benefits.
When using your credit card overseas, you’ll encounter foreign currency transactions. This involves converting your local currency into the currency of the country you’re visiting. Keep in mind that currency exchange rates can impact the overall cost of your transactions.
One key aspect to consider is foreign transaction fees. These fees are charged by some credit card issuers for purchases made in a foreign currency. It’s important to select a credit card that offers low or no foreign transaction fees to save on additional costs.
Another factor to keep in mind is the conversion fees. Some credit cards may impose a fee for converting currency during an overseas transaction. Understanding these fees will help you choose a credit card that offers competitive rates for currency conversion.
Overall, finding the right credit card for overseas spending involves considering foreign transaction fees, currency conversion rates, and other benefits that can enhance your travel experience.
Remember, the right credit card can make your overseas spending experience much more convenient and cost-effective.
Evaluating Rewards and Benefits
When evaluating credit cards for overseas spending, one of the most important factors to consider is the rewards and benefits that the card offers. Here are some tips to help you maximise your rewards and benefits:
Maximising Cashback Rewards
If you are looking for a credit card that offers cashback rewards for overseas spending, look for one that offers a high percentage of cashback on all spending. Some cards also offer higher cashback rates for specific categories such as dining, shopping, and online transactions. For example, the Citi Cash Back Card offers up to 8% cashback on dining, groceries, and petrol, and up to 6% cashback on online shopping.
Earning Air Miles Efficiently
If you are a frequent traveller, you may want to consider a credit card that allows you to earn air miles for your overseas spending. Look for a card that offers a high air miles earning rate for all spending, as well as bonus miles for specific categories such as airline and hotel transactions. For example, the American Express Singapore Airlines KrisFlyer Credit Card offers up to 1.1 KrisFlyer miles for every S$1 spent overseas, as well as bonus miles for Singapore Airlines and SilkAir transactions.
Exclusive Travel Perks
Some credit cards offer exclusive travel perks such as airport lounge access, travel insurance coverage, and hotel discounts. Look for a card that offers these benefits if you have specific travel needs. For example, the UOB PRVI Miles American Express Card offers complimentary airport lounge access, travel insurance coverage of up to S$1 million, and discounts on cruises and hotels.
When evaluating credit cards for overseas spending, it is important to consider the rewards, cashback, miles, airline, and benefits that the card offers. Look for a card that offers the most value for your spending, taking into account factors such as annual fees and minimum spend requirements. With the right travel credit card, you can earn cash rebates, air miles, and exclusive travel perks while enjoying peace of mind with travel insurance coverage.
Top Credit Cards for Overseas Expenditure
Travelling abroad can be a fun and exciting experience, but it can also be expensive. That’s why it’s important to choose the right credit card for your overseas spending needs. In this section, we’ll take a look at some of the best credit cards for overseas expenditure in Singapore.
Best Cashback Cards for Overseas Spending
If you’re looking for a credit card that offers cashback on your overseas spending, then the following cards are worth considering:
- UOB One Card: This card offers up to 5% cashback on all overseas spending, as long as you meet the minimum spend requirements. Plus, you can enjoy up to 10% SMART$ rebates at selected merchants.
- Citi Cash Back Card: With this card, you can get up to 8% cashback on your overseas spending, depending on the merchant. Plus, you can enjoy up to 20% off at selected restaurants.
- DCS Cashback Card: This card offers up to 3% cashback on all overseas spending, with no minimum spend required. Plus, you can enjoy up to 10% off at selected merchants.
Best Air Miles Credit Cards for Overseas Spending
If you’re a frequent traveller, then you might want to consider a credit card that offers air miles for your overseas spending. Here are some of the best air miles credit cards in Singapore:
- DBS Altitude Visa Signature Card: This card offers up to 3 miles per $1 spent on overseas spending, as well as complimentary airport lounge visits and travel insurance.
- CIMB Visa Signature Card: With this card, you can earn up to 10 miles per $1 spent on overseas spending, as well as complimentary travel insurance.
- KrisFlyer UOB Credit Card: This card offers up to 3 miles per $1 spent on overseas spending, as well as complimentary airport lounge visits and travel insurance.
Other notable credit cards for overseas spending include the OCBC 90°N Card, the Maybank World Mastercard, and the HSBC Advance Card. No matter which credit card you choose, be sure to read the terms and conditions carefully to make sure you understand all the benefits and fees associated with the card. With the right credit card, you can enjoy your overseas travels without breaking the bank.
Strategies for Minimising Fees and Charges
Travelling overseas can be expensive, and the last thing you want is to be hit with high fees and charges when using your credit card. Here are some strategies to help you minimise fees and charges when using your credit card overseas.
Avoiding Dynamic Currency Conversion
Dynamic Currency Conversion (DCC) is a service offered by some merchants that allows you to pay for goods or services in your home currency rather than the local currency. While this may seem like a convenient option, it can be more expensive than paying in the local currency. Merchants may charge a high exchange rate, plus additional fees for the service.
To avoid DCC fees, always choose to pay in the local currency. This will ensure that you get the best exchange rate and avoid any unnecessary fees and charges.
Choosing the Right Currency for Transactions
When using your credit card overseas, you may be given the option to pay in your home currency or the local currency. It’s important to choose the right currency to avoid unnecessary fees and charges.
If you choose to pay in your home currency, the transaction will be processed using Dynamic Currency Conversion (DCC), which can be more expensive than paying in the local currency.
On the other hand, if you choose to pay in the local currency, your credit card provider will convert the transaction at the current exchange rate, which is usually more favourable than DCC rates.
To ensure that you get the best exchange rate and avoid unnecessary fees and charges, always choose to pay in the local currency.
By following these strategies, you can minimise fees and charges when using your credit card overseas. Remember to always check the exchange rate and fees before making a transaction, and choose the option that will save you the most money.
Smart Spending Tips Abroad
Travelling overseas can be an exciting and enriching experience. However, it can also be expensive, especially if you are not careful with your spending. Here are some smart spending tips to help you make the most of your overseas trip without breaking the bank.
Dining and Entertainment
When dining out, look for restaurants that offer discounts or promotions for credit card users. Many credit cards in Singapore offer discounts of up to 20% at selected restaurants. You can also save money by eating at local food markets or hawker centres, where the food is often cheaper and just as delicious.
For entertainment, consider purchasing tickets online in advance. Many attractions and events offer discounts for online bookings. You can also check for credit card promotions that offer discounts on movie tickets or other entertainment options.
Online Shopping and Services
When shopping online, look for credit cards that offer cashback or rewards for online purchases. Some credit cards offer up to 5% cashback on online spending, which can add up quickly. You can also save money on online services such as food delivery by using credit card promotions or discount codes.
Utilising Hotel and Flight Bookings
When booking hotels or flights, look for credit card promotions that offer discounts or cashback. Some credit cards offer up to 10% cashback on hotel bookings or discounts on flights booked through online travel agencies such as Expedia or Agoda.
You can also save money by booking your flights and hotels together as a package. Many credit cards offer promotions for package bookings, which can save you a significant amount of money.
Remember to always pay your credit card bills on time to avoid interest charges. By following these smart spending tips, you can make the most of your overseas trip without overspending.
Maintaining Security and Managing Risks
Travelling abroad can be an exciting experience, but it’s important to maintain security and manage risks to protect your savings and prevent any fraudulent transactions. Here are some tips to help you protect yourself while using your credit card overseas.
Protecting Against Fraudulent Transactions
When travelling abroad, it’s important to be aware of the risks of fraudulent transactions. To reduce the risk of fraud, it’s recommended that you:
- Notify your bank or credit card provider of your travel plans in advance. This allows them to monitor any suspicious activity on your account while you’re away.
- Keep your credit card in a safe place and don’t leave it unattended. This will help prevent any unauthorised use of your card.
- Use your credit card only at reputable merchants. Avoid using your card at unfamiliar or unsecured locations.
- Check your credit card statements regularly for any suspicious activity. If you notice any unauthorised transactions, report them to your bank or credit card provider immediately.
Understanding Credit Card Policies Abroad
When travelling abroad, it’s important to understand the credit card policies of the foreign country you’re visiting. This includes:
- Understanding the exchange rate between your home currency and the local currency. This will help you avoid any unexpected charges or fees.
- Knowing the fees associated with using your credit card abroad. This includes foreign transaction fees, ATM fees, and currency conversion fees.
- Checking if your credit card offers any travel insurance or protection. This can help protect you in case of any unexpected events while travelling.
By following these tips and understanding the credit card policies abroad, you can help protect your savings and enjoy a worry-free overseas spending experience.
Eligibility and Application Insights
Are you excited to apply for a credit card that will make your overseas spending more rewarding? Before you start filling out application forms, here are some insights on eligibility and fees that you should keep in mind.
Meeting Minimum Income Requirements
Most credit cards in Singapore have a minimum income requirement that you must meet in order to be eligible for the card. This requirement varies from card to card, so it’s important to check the specific requirement of the card you’re interested in.
For example, the Citi PremierMiles Card requires a minimum income of $30,000 p.a., while the HSBC Visa Infinite Card requires a minimum income of $120,000 p.a.
Make sure you meet the minimum income requirement before you apply for a card. If you don’t, your application will likely be rejected.
Navigating Annual Fees and Charges
Another important factor to consider is the annual fee and other charges associated with the card. Some cards have no annual fee, while others can charge as much as $500 or more per year.
Before you apply for a card, make sure you understand the annual fee and any other charges associated with the card. Some cards may waive the annual fee for the first year, or offer other perks that can help offset the cost of the fee.
It’s also important to understand the interest rate associated with the card. If you carry a balance on your card, you’ll be charged interest on that balance. Make sure you understand the interest rate and how it’s calculated before you apply for a card.
Overall, it’s important to do your research and understand the eligibility requirements and fees associated with any credit card you’re interested in. This will help you find the best card for your needs and ensure that you’re able to use the card responsibly.
Maximising Savings and Earnings
Leveraging Earn Rates and Promotions
When selecting a credit card for overseas spending, it’s essential to consider the earn rates and promotions offered. Look for cards such as the HSBC Advance and Citi Rewards that provide attractive earn rates for every dollar spent abroad. These cards often offer bonus points or miles for specific spending categories, allowing you to maximise your rewards. Keep an eye out for limited-time promotions that can further boost your earnings, providing you with more value for your spending.
Analysing Long-Term Value
In addition to short-term promotions, consider the long-term value of the credit card. Look for benefits such as annual fee waivers, complimentary travel insurance, and access to airport lounges. The Maybank World credit card, for example, offers exclusive travel perks and privileges that can enhance your overall travel experience while providing substantial long-term savings. By carefully analysing the long-term benefits of each card, you can ensure that you are maximising your savings and earnings on overseas spending.
Frequently Asked Questions
What are the top credit cards offering the lowest foreign transaction fees in Singapore?
When using your credit card for overseas spending, you may be charged a foreign transaction fee. Some credit cards offer lower fees compared to others. For instance, the HSBC TravelOne Card charges a foreign currency transaction fee of 3.25%. You can also consider the DBS Altitude Card, which charges a foreign transaction fee of 2.8%.
Which credit card provides the most favourable foreign exchange rates for globetrotters?
Credit cards that offer the best exchange rates for overseas transactions can help you save money. The Wise Card is a great option, as it offers real-time exchange rates and charges no markup fees on foreign currency transactions. Other cards that offer favourable exchange rates include the Citi PremierMiles Card and the UOB PRVI Miles Card.
Can you recommend the best travel credit cards with perks for use abroad?
Yes, there are several travel credit cards that offer great perks for use abroad. For instance, the American Express Singapore Airlines KrisFlyer Credit Card offers complimentary travel insurance, airport lounge access, and bonus KrisFlyer miles for overseas spending. The DBS Altitude Card also offers travel insurance and lounge access, as well as bonus miles for overseas spending.
How do I avoid hefty fees when using my Singapore credit card internationally?
To avoid hefty fees when using your Singapore credit card internationally, consider getting a credit card that offers low or no foreign transaction fees. Also, try to use your credit card only for larger purchases, as some cards may charge a fixed fee for each transaction.
What are the prime credit cards for earning rewards on overseas expenditure?
If you want to earn rewards on your overseas expenditure, consider credit cards that offer air miles or cashback rewards. The Citi PremierMiles Card offers 1.2 miles for every S$1 spent overseas, while the UOB PRVI Miles Card offers 1.4 miles for every S$1 spent overseas. The HSBC Revolution Card offers 2 miles for every S$1 spent on dining, entertainment, and online transactions, including overseas spending.
Which travel-friendly credit cards also offer robust fraud protection for international use?
When using your credit card overseas, it’s important to have robust fraud protection. The American Express Singapore Airlines KrisFlyer Credit Card offers 24/7 fraud monitoring and zero liability for unauthorised charges. The HSBC TravelOne Card also offers zero liability for unauthorised charges and a chip-and-PIN security feature for added protection.
