Credit cards are a safe and convenient method of payment for those who travel a lot, but if you are planning to use yours abroad often, there are a few things you need to watch out for. Look for any overseas usage fee when you consider the various offers, as these can increase your costs significantly. The exchange rate used by the issuer will also affect the amount you spend. Although this is based on the Visa and Mastercard wholesale rates, there can be additional charge of up to 3%, so if you need to use plastic in a foreign country, choose a product that is designed specially for this purpose and offers you facilities such as a replacement card in case the one you own gets lost or stolen, or an international assistance package.

Remember that there is no single solution suitable for anyone and in any situation. If several of the above scenarios apply to you, then it may be a good idea to get a separate card for each different purpose in order to minimize your costs. The companies often charge a different interest rate for purchases, balance transfers and cash advances, so if you have one card that you use for all of these things, you will probably end up paying more for one of them. The issuers are obliged by law to summarize the features of their product, including interest rates and fees in a disclosure box that makes it easier for you to compare the relevant aspects of many different deals.

Your credit history and score will be taken into consideration when the provider decides whether or not to lend to you. If you have a bad history or outstanding debts, the best deals they advertise may not be available to you, and there is no point in applying for a product that you are unlikely to obtain. Get all the available information on the offer from the issuer to make sure that your application will be accepted, and cancel any cards you no longer use to improve your credit score.

If you have accumulated a debt on a high interest rate credit card, you may want to transfer your balance to one that has a lower interest. In this case you should look for a product that has an introductory or promotional offer of 0% on balance transfers. Many providers have such offers that last up to twelve months, and you should aim to clear your debt by the end of that period. This means that you will have to pay more than the minimum amount set by the company each month, because otherwise it could take years to get rid of your debt. If you are unable to achieve this goal by the end of the promotion, you will have to switch to a new card again at the end of it in order to avoid paying the regular interest. You should also avoid using the card for new purchases, as these may be charged the standard rate.