Charges for using a Credit Card abroad
If you are trying to find the best
deals possible when comparing credit cards, it is vital to
remember that it is not just the APR rate and interest charges you need
to pay attention to, other points should not be forgotten when looking
for the most appealing deals possible.
- What will the charges be for
using a card abroad?
You may find that your card won’t be
used abroad hardly ever, if at all but it is becoming more and more common
for most places to accept VISA, MasterCard and American Express to name but
a few.
Following the recent dispute
regarding unnecessary bank charges, it has been reported that most people
looking to apply for credit cards don’t read the small print and using a
card abroad can cost one dearly and in 2007 billions of pounds profit will
be made as a result of such charges.
With many financial organisations,
the fees may vary but if you spend £100 abroad for example then around £2.75
will be added on and whilst this may not sound like a lot, it will soon add
up and there can be other “hidden charges” such as extra insurance policies
to cover against theft etc.
Always remember when comparing
credit cards, read ALL the small print to ensure that no charges seem
too extreme, don’t just concentrate on APR rates, using cards abroad is more
common place today then it was just 10 years ago and without the hassle of
carrying a lot of cash around, it can also seem a convenience but at how
much of an expense?
How can I find out what these
charges are?
It is part of FSA regulations that
all financial companies must clearly state their charges (however slight)
because a lack of awareness about such charges is a major breach of
protocol.
If you want to request the details
from the lenders then again, they cannot refuse such a question so if you
require the information then this should be provided to you immediately.
Don’t take any excuses; you have the rights as much as anyone else to this
information.
Will any rates be subject to
change?
This can be another downfall when it
comes to comparing credit cards and before submitting any
applications, ask lenders if charges for use abroad rise after a particular
period of time or if they are due to increase in the near future.
In most cases, such rates very
rarely change but it is better to be safe than sorry and end up being stung
with “over the top” charges and leading to headlining news which involves
individuals recovering money that was taken from them illegally.
With this scenario, it is not
illegal and claiming back money by not reading the small print is a common
issue.
Overall, it doesn’t take a lot of
time to compare credit cards but remember all of the following points
which will help lead you to the best credit cards available on the market
today:
- APR Rate
- Introductory period
- Charges for using a card abroad
These are the most important points
to remember with any potential credit card application and by confirming the
rates and whether or not they are subject to change, a lot of time and
potential problems can be very easily avoided.
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