Keeping track of your money while studying or traveling abroad can be a stressful experience. Find out which credit card is ideal for your next trip with our assistance.
There is a wide variety of credit card options available. But it’s not always easy to tell which one is going to work best for you.
Also, if you are an international student or intend to travel internationally frequently, you should get a card that helps you make the most of your points while minimizing the impact of fees and fluctuations in foreign exchange rates.
Stumped for ideas? We’ll examine some of the most promising paths open to students interested in studying abroad. You’ll be able to compare each card’s annual fee and perks with those of its rivals.
Please take note that our mission at Go Overseas is to put you in touch with the tools you need to have a transformative experience while overseas. Nothing in this essay has been reviewed, approved, or endorsed by any bank or credit card issuer other than the author’s own research and suggestions as a fellow study abroad graduate.
Credit card sign-up perks for students studying abroad
International students and those taking a gap year can benefit greatly from using a credit card. If you’re not aware with how these cards function, allow me to give you a brief overview.
Companies that issue credit cards are in business to make money, which is why they provide enticements to customers. This includes perks like cash back or 0% interest on purchases. Getting a credit card specifically designed for students studying abroad before leaving home and using it entirely while studying abroad is the easiest way to take advantage of these perks. Both your credit score and your travel fund will benefit from this.
If you’re more concerned with saving money than accruing rewards points, ask your school about getting an International Student Identity Card. This will serve as proof of your student status when making purchases such as textbooks in New Zealand or museum admission in Spain. These IDs not only serve as proof of your student status everywhere in the world, but they also unlock a plethora of discounts from establishments all over the world.
In search of further travel advice? Learn from our experiences to have a relaxing trip through the airport.
A credit card is not an unlimited supply of cash; use it with caution.
Credit cards are convenient and appealing ways to spend money, so it’s important to keep that in mind. It’s easy to rack up significant debt if you’re not careful.
Moreover, credit card debt is pricey; if you carry a $1,000 amount for five years, paying it off might cost you more than $4,000 in interest. Credit scores are important because they can affect your ability to do things like receive a loan or rent an apartment if you have any problems managing your credit card usage.
Credit cards for beginners.
You may be thinking, “How can I get great travel rewards or cash back cards if I don’t have any credit history?”
The encouraging news is that it can be done. People with no prior credit history might still qualify for some of the best travel rewards and cash-back credit cards on the market. Pick a card that fits your lifestyle, and investigate the perks it offers before you apply. Due to the frequent occurrence of both annual and international transaction fees when studying abroad, you should actively seek out a card that does not charge either.
The Discover it Secured Credit Card is ideal for establishing credit.
Credit scores between 300 and 629 are suggested.
The Discover it Secured Credit Card is a solid choice for those with limited or no credit history. Based on the size of your initial security deposit, you can have a credit line of $200-$2,500. A $200 first deposit would secure a $200 credit line, and so on.
After six months from the account’s opening date, the security deposit can be reimbursed if the customer requests it in writing and settles any outstanding debt. There are no yearly charges for this card, however a $35 late payment fee will be assessed once the due date has passed.
Pros:
- Use your credit wisely to improve it.
- Get free money back and cash rewards programs.
Cons:
- You have to show that you can afford to pay the charge.
- demand a payment for safety
Finest for boosting one’s credit rating: Credit Card with Cash Rewards from Capital One for College Students
The optimal credit score range is 630-689.
Some of the greatest options for students looking to establish credit are provided by the Capital One Savor One Student Cash Rewards Credit Card. The lack of both an annual charge and a tax for making purchases in a foreign currency makes this card a great choice for frugal travelers. Bonus prizes can be redeemed for statement credits or used to purchase additional gift cards. Your monthly spending will determine your cash back payout, which can range from 1% to 8%.
The ability to remotely freeze one’s SavorOne account via mobile app is a convenient tool for those who worry about losing their cards while traveling. With the $0 Fraud Liability Guarantee from Capital One, you won’t have to worry about fraudulent charges, even if they occur while you’re abroad (which is very likely).
Pros:
- Bonuses of $100 after the first three months of spending $100.
- Free of all expenses associated with international transactions
Cons:
- More careful tracking of rewards is required than with a flat rate rewards card because bonus rewards categories need to be triggered periodically.
- It lacks any sort of dedicated travel rewards program (air miles, extra points for airfare, etc.).
That’s fantastic news! Student credit cards are plentiful for those with good to exceptional credit. These cards are popular among students, but they sometimes come with hefty fees and interest rates, making them a poor choice for those who want to maximize benefits. These cards are great if your income is consistent enough that you can pay off your balance in full each month (and so avoid interest).
The Chase Freedom Flex is the best travel rewards credit card.
Credit scores between 690 and 850 are suggested.
The Chase Freedom Flex is a great travel rewards credit card. There is no yearly cost, and you can earn 5% cash back on up to $1,500 in combined purchases in rotating categories each quarter after activation. You’ll get one percent cash back on all future purchases.
The purchase interest rate on this card is 0% for the first 15 months. You can use it for anything, not just the revolving categories, and you’ll still get 1% back. This is due to the fact that the benefits you receive from using this card are contingent upon your total expenditures rather than the kind of businesses you make those expenditures at (such as gas stations or Target).
The only caveat is that you won’t get extra points for travel expenses, but will instead earn an extra 1% on all other purchases (which still contribute toward fulfilling spending thresholds).
Pros:
- There is no yearly charge
- New customers get $200 in cash.
Cons:
- Each bonus category must be activated on a monthly basis.
- It lacks any benefits that might be useful on a trip.
In terms of big initial benefits with no yearly commitment: Signature Card from Wells Fargo
Credit scores between 690 and 850 are suggested.
The Wells Fargo Autograph Card is a good choice if you want to maximize your rewards potential without paying an annual fee or making more than $50 in overseas purchases each year.
Earn 15,000 bonus points after making $3,000 in purchases during the first three months of account activation (up to $150). This is one of the best introductory bonus rewards rates among cards that do not charge an annual fee. You can earn one to three points for every dollar you transfer with this card.
This card does not impose any additional fees for use outside of the country. No penalty APR means you can preserve your good credit score even if your financial situation worsens. This card comes with complete protection against fraudulent or unauthorized charges, so you have nothing to lose if something goes wrong with a purchase you make.
Pros:
- 30k bonus points for the
- first year free of charge
Cons:
- Must have good to great credit, with a credit score between 690 and 850.
- There is no way to move points to hotel or airline programs.
The Bank of America Travel benefits Credit Card is the best for flexible benefits.
Credit scores between 690 and 850 are ideal.
Students who want a credit card with flexible points should get the Bank of America Travel points Credit Card. There are no fees for using this card abroad and there is no yearly fee. Also, when a new user opens an account and spends $1,000 in the first 90 days, they’ll get 25,000 extra points.
Bank of America Travel Rewards gives extra points for every dollar spent on purchases made directly through Bank of America’s online site, not at an airport or hotel. For instance: If you use this card to buy plane tickets for $500, you’ll get 500 more points.
This card gives you 1.5% cash back on everything you buy. You can get a statement credit, gift cards, merchandise, trips, and more in exchange for your points. Also, the annual percentage rate (APR) is 0% for the first 15 billing rounds.
Pros:
- Opening bonus of 25,000 points (worth $250) with no yearly commitment
Cons:
- There are better travel rewards cards out there with a higher sign-up bonus.
- To take advantage of the limited-time promotion, spend $1,000 during the first 90 days.
Premium Spending Credit Cards for the Annual Fee Paying Consumer
Some credit cards include annual fees that are well worth paying if the card provides significant benefits. An annual fee isn’t necessarily a bad thing, but it’s something to think about when applying for the proper card, especially if you’re an international student with a high salary or if your parents are prepared to assist cover the cost of tuition and other expenditures.
If you are unsure, don’t commit to a yearly cost. However, they can be worthwhile if you expect to make a lot of purchases in your host country.
The best for hefty welcome packages: The Sapphire Preferred from Chase
Credit scores between 690 and 850 are suggested.
Those who often rack up large purchases would benefit greatly from the Chase Sapphire Preferred Card. After spending $4,000 on purchases within the first three months, cardholders are eligible for a 50,000-point welcome bonus, equivalent to $625 in travel benefits. If you’re willing to pay the $95 annual fee, this card offers the best bonus we’ve seen.
When you use the Chase rewards portal to plan your trip, you’ll earn three points for every dollar spent. In addition, you earn one point for every dollar you spend.
Pros:
- Provides a 50,000-point sign-up incentive (equivalent to $625 in travel value).
- Free of all expenses associated with international transactions
Cons:
The entry level discount has a very high minimum purchase requirement.
Costs $95 yearly
The top choice for any financial outlay: Premium Citicard
Credit scores between 690 and 850 are suggested.
The Citi Premier Card is a versatile credit card that can be used for any purchase and will help you rack up points quickly. All general purchases will give you 1x-3x points.
You may use the annual travel credit of $100 for airfare or lodging, and the card also comes with a terrific introductory rewards rate. Whether you’re taking a trip home for the holidays or traveling the world, this card can be used to offset some of the costs associated with your travels.
The Citi Premier Card also offers a lower interest rate for balance transfers from high-interest credit cards. Paying off high-interest debt before a trip abroad can benefit from this.
Pros:
- Provides a 50,000-point sign-up incentive (equivalent to $625 in travel value).
- Free of all expenses associated with international transactions
Cons:
Cons:
- The entry requirement to take advantage of the introductory deal is quite high.
- Annual cost of $95.
Best for quick gratification: Credit Card With Venture Rewards From Capital One
Credit scores between 690 and 850 are ideal.
If you’re an international student looking to rack up airline miles without having to deal with any intricate redemption tactics, the Capital One Venture Rewards Credit Card is a solid option. You can earn two to five times as many miles for every dollar spent, and if you spend $3,000 in the first three months, you’ll get a welcome bonus of 75,000 miles.
You can get your TSA PreCheck or Global Entry application fee reimbursed, too. You may quickly and easily cash in your rewards. Using Capital One’s dedicated travel site is all that’s required. There is no requirement to change your points into miles or anything else.
Pros:
Start with 75,000 Bonus Miles!
The $100 TSA PreCheck or Global Entry application fee is
Cons:
Annual cost of $95.
Unfortunately, there aren’t a lot of domestic airlines that accept mileage transfers to their loyalty schemes.
Here are some suggestions for responsible credit card use and the establishment of a solid credit history as a student:
- Apply for a credit card. Apply for a student ID card that meets your needs and is accepted.
Put it to good use. - Only make essential purchases with the card. Don’t go crazy with your credit card because there’s no limit to how much can be charged to your account at once.
- Always settle your monthly balance in full.
- There will be no accrual of debt from one month to the next. If you want to avoid having your credit score lowered by late payment fines, you can instead pay off your debts until you have zero remaining.
- Initiate recurring bill pay. Set up recurring payments from a different account if you are unable to repay the whole amount immediately.
Make a habit of paying on time with your new credit card company to develop a solid credit history as a responsible borrower.
Advice on how to save money while traveling
A credit card can be a great financial tool for a student who plans to study abroad, both for regular expenditures and for travel. But you’ll need disciplined spending and an understanding of personal finance for it to occur. If you want to avoid throwing away your hard-earned money, consider the following budgeting advice:
- Have a plan for your money and stick to it. Spending too much money on souvenirs or eating out at a different restaurant every night can quickly add up.
- You should determine a rough monthly budget before going abroad to study, and then stick to it. If your rent is $1,000 USD per month (including utilities), you should try not to spend more than that when paying your bills.
- Make a scheduled payment into your savings. If you struggle to save money each month for your basic needs, consider setting up recurring
- deposits from your primary bank account. All costs will have been anticipated and accounted for, eliminating the potential of overpaying.
- Start saving for a rainy day. It’s fantastic to save up for enjoyable things to do while studying abroad, but you should also have emergency funds set aside in case you have to get home quickly or get medical attention.
Read more: top-abroad-internship-places-in-2023
Pick the correct card
As we’ve seen, there are a plethora of excellent options when it comes to credit cards for overseas travel. Each card, however, has advantages and disadvantages. Therefore, the greatest option is totally up to you and what you’re looking for.
An airline credit card could be useful if you make frequent purchases related to flying and would like to receive points on such transactions. A no foreign transaction fee card could be a good option if you frequently make purchases abroad but would rather not pay a yearly fee or carry a large balance from month to month. Keep in mind that not everyone will qualify for the same international rewards credit card, so make sure you do your homework before applying.
For additional information on ways to save money for your trip, read on:
