Are you a student? Are you looking for the best credit cards use in travelling abroad either for schooling or holiday trip? Why is the credit card arguably one of the most important financial possession of the present day millennial?
It is because the credit card allows individuals perform cashless transactions for the settlement of goods and service as well as to carry out other important financial activities like cash transfers, account balance verification among others.
For the student preparing to travel abroad for a higher education, the credit card assumes a more telling importance. For a good number of students, embarking on this trip presents an opportunity to begin to amass a good financial credit rating. This is an important consideration, especially since most students have little or no financial credit history.
Students will need to use credit cards that lodge timely reports about payment transactions and histories to relevant regulatory agencies. The ideal credit cards suitable for students should offer packages such as charging minimal transaction fees, loyalty and reward schemes, and cash refund programs that come into effect when payments are made on everyday items such as purchases on petrol, provisions, consumables and other routine items.
Credit cards are ideal for the student studying in a university abroad. For starters, credit cards are issued with features that guard against fraud and for when the card is stolen. All the student has to do is to call the credit card company and request for the deactivation of the card.
In addition, students abroad can rest assured that credit card firms, from time to time, scrutinize credit cards to spot strange or unusual activity and they usually contact the holder of the card when it is determined that the card has been compromised.
Students travelling abroad and who desire to maintain a credit card can also take into consideration certain other salient factors that accompany the use of credit cards:
1. Use Credits with E.M.V Authentication
Students at a foreign university will be expected to conduct a lot of transactions using their credit cards. Most ATMs around the globe, possibly with the except of the United States of America, use Chip-and-PIN or Chip-and-Signature Technology- also referred to as E.M.V Technology. It requires that the user input a 4-digit pin number for the consummation of each transaction.
2. Shun Transaction Fees/Utilize Travel Benefits
Students embarking on foreign study should endeavor to obtain credit cards that do not charge an overseas transaction fee/commission on each transaction. Also, students should keep an eye out for credit card companies that reward a growing credit history rating with compensatory travel benefits.
With travel benefits, the student can rack up airline miles or hotel stay points, pay less on baggage handling costs, and be eligible for other benefits like journey insurance etc.
3. Have Back-up Cards
As a student travelling abroad, it is expected that adequate arrangements are put in place to mitigate unforeseen circumstances. For an example, the credit card company could decide to deactivate the card if it suspects fraudulent activity, not attributable to the owner of the card.
In this instance, it will be handy to have at least another credit card from which payments can be made pending the resolution of issue associated with the first card.
For the student travelling abroad to study, the following credit cards come highly recommended:
A. Student Credit card from ‘Capital One’
For the student travelling abroad for a higher education, the Capital one credit is the handy travel companion. It boasts of a number of attractive features that include a cash back program where student purchases earn a 1 percent cash back, no annual fees or subscription, no transaction fees and no balance transfer fees.
The Capital One credit card also affords the student the opportunity to improve his/her credit rating score with a simulator that assists in assessing the credit score viability of the student, especially in unforeseen financial events and activities.
B. ‘Discover It’ Credit Card for Students
Discover It credit card is another popular choice for students that are embarking on a foreign travel. Discover It has as its major attraction, a cash back reward scheme for the student who makes frequent purchases on everyday items.
The cash back sum is pegged at 1 percent. Another benefit of the Discover It credit card is that the company rewards students, who have held the credit card for one year, with a doubling of all the cash back rewards for the preceding year.
The diligent student with exceptional grades (maintaining a minimum GPA of 3.0 for five years) will be entitled to an additional 20 USD plus whatever cash back sums, at the end of each year.
C. Upromise World MasterCard
This credit card enjoys favorable ratings among students that desire to earn money for making everyday purchases. Cash back reward schemes include a 1 percent return on everyday purchases like items picked up from a supermarket and 2 percent return for purchases made at a movie theater or cinemas.
For the student travelling abroad, it is advisable to carry out a proper assessment of the credit cards before settling for a particular type, taking into consideration your spending limits and budget. It is standard practice to have at least two credit cards, to guard against unforeseen circumstances. Credit cards are meant to be used responsibly.