Going on holiday or travelling for business can mean that the convenience of a credit card can become very obvious. There are many reasons why a person would be glad to have a credit card abroad, as it is a convenient way of paying for goods while at the same time being charged for them in a convenient and easy to understand way.
However when someone is going abroad for a long period of time then the use of a credit card that is based abroad, rather than in Australia, may come up. What are the things that a person needs to consider in this type of situation?
People may need to think about a credit card when they are based abroad for a number of reasons. They may travel very frequently to a certain place, either because they have business interests there, their employer has a branch overseas that needs to be visited often or they have a job that takes them overseas. In all of these cases they are still based in Australia. A credit card that is based abroad may solve a number of issues.
However it is important to understand what these issues really are, as there may be an easier way to sort these problems. The first is that the credit cards may have a foreign currency transaction fee. This is a fee that is charged when a person has a transaction that is not in Australian dollars. It is usually a flat fee, but it can also be charged as a proportion of the transaction. There may also be an issue in that the credit card statement may be charging in Australian dollars when most of the income is actually in a foreign currency. This is good when the Australian dollar is strong, but it can make a big difference when the Australian dollar is becoming weak.
It may be the case that a credit card that is designed for frequent business travellers may be the best thing for this type of credit card user. In some cases these cards can be charged in another currency. They also tend not to have foreign currency transaction fees.
There are also a number of issues that people could have with a card that is based abroad. If they are paid in Australian dollars they will find that they are charged in foreign currency for the credit card. They will also not have as good a credit rating overseas.
