Credit Cards for Traveling Students: A Comprehensive Guide
Credit Cards for Traveling Students is an exciting opportunity to explore new cultures, learn new languages, and broaden your horizons. However, managing finances on the go can be a challenge, especially when traveling abroad. Credit cards designed for students or frequent travellers can make this process easier, providing not only financial flexibility but also valuable rewards, protections, and conveniences. Here, we delve into everything you need to know about credit cards for traveling students, including the benefits, features to look for, and tips for using them wisely.
Benefits of Credit Cards for Traveling Students
- Convenience: Credit cards eliminate the need to carry large amounts of cash, making transactions safer and more straightforward.
- Worldwide Acceptance: Major credit card networks like Visa, Mastercard, and American Express are accepted in most countries, ensuring you can make purchases virtually anywhere.
- Emergency Support: Many credit card issuers provide emergency cash advances and replacement cards if your card is lost or stolen while abroad.
- Rewards Programs: Travel-focused credit cards often come with rewards programs, offering points, miles, or cashback on purchases like flights, accommodation, and dining.
- Travel Insurance: Some student credit cards include travel perks like trip cancellation insurance, lost luggage reimbursement, and car rental insurance.
- No Foreign Transaction Fees: Certain travel cards waive foreign transaction fees, saving you an average of 1-3% on international purchases.
- Credit Building: Using a credit card responsibly helps you build a positive credit history, which can benefit you in the future when applying for loans or renting an apartment.
Features to Look for in a Credit Card for Traveling Students
When selecting a credit card for your travels, it’s essential to consider specific features that align with your needs:
- Low or No Annual Fee: Many student-oriented travel credit cards come with low or no annual fees, making them budget-friendly for young travellers.
- Foreign Transaction Fee Waiver: Ensure your card doesn’t charge extra fees for purchases made in foreign currencies.
- Rewards and Cashback: Look for a card that offers rewards on travel-related expenses like airfare, hotels, and dining. Some cards even allow you to redeem points for travel credits.
- Introductory Offers: Many travel credit cards provide sign-up bonuses if you meet a spending threshold within the first few months. This can be a great way to earn free flights or hotel stays.
- Security Features: Opt for a card with robust fraud protection, chip-and-PIN technology, and real-time alerts for suspicious transactions.
- Travel Protections: Cards with travel insurance, such as trip delay or cancellation coverage, can save you money and stress if your plans go awry.
- Student-Friendly Requirements: Look for cards specifically designed for students, which typically have lower credit score requirements and may not require a significant credit history.
Top Credit Cards for Traveling Students
Here are a few highly-rated credit cards suitable for students who love to travel:
Discover it® Student Cash Back:
Rewards: 5% cashback on rotating categories (including restaurants and travel) and 1% on other purchases.
Annual Fee: None.
Special Perk: Matches all cashback earned in the first year.
Bank of America® Travel Rewards Credit Card for Students:
Rewards: Unlimited 1.5 points per $1 spent on all purchases.
Annual Fee: None.
Special Perk: No foreign transaction fees.
Chase Freedom® Student Credit Card:
Rewards: 1% cashback on all purchases.
Annual Fee: None.
Special Perk: $20 good standing reward for each account anniversary for up to five years.
Capital One SavorOne Student Cash Rewards Credit Card:
Rewards: 3% cashback on dining, entertainment, and popular streaming services; 1% on other purchases.
Annual Fee: None.
Special Perk: No foreign transaction fees.
Journey Student Rewards from Capital One:
Rewards: 1% cashback on all purchases, boosted to 1.25% when you pay on time.
Annual Fee: None.
Special Perk: No foreign transaction fees.
Using Your Travel Credit Card Wisely
- Set a Budget: Before you travel, establish a budget for daily expenses and stick to it. Use your credit card for planned purchases to avoid overspending.
- Pay in Full Each Month: To avoid interest charges, aim to pay your balance in full every billing cycle. This also helps build a strong credit score.
- Monitor Your Spending: Use your card issuer’s app or website to track your transactions and ensure you’re staying within your budget.
- Notify Your Bank: Inform your credit card issuer about your travel plans to prevent your card from being flagged for suspicious activity.
- Understand Your Card’s Benefits: Familiarize yourself with the perks and protections your card offers, such as purchase protection, rental car insurance, and extended warranties.
- Use Secure ATMs: If you need to withdraw cash, use ATMs in safe, well-lit areas, preferably inside a bank.
- Carry a Backup: Bring a secondary card or some cash as a backup in case your primary card is lost or declined.
Common Mistakes to Avoid Credit Cards
- Ignoring Fees: Be aware of any fees associated with your card, including cash advance fees, late payment fees, and foreign transaction fees (if applicable).
- Exceeding Your Credit Limit: Stay within your credit limit to avoid penalty fees and damage to your credit score.
- Using Dynamic Currency Conversion: When offered the choice between paying in your home currency or the local currency, always choose the local currency to avoid hidden markup fees.
- Missing Payments: Late payments can lead to penalties and negatively impact your credit score. Set up automatic payments or reminders to avoid this.
- Relying Solely on Credit Cards: While credit cards are convenient, it’s wise to carry some local currency for small purchases or emergencies.
