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Q: Which credit cards have the lowest fees for international travel? Specifically, I'm going to New Zealand, China, and Europe.

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Added November 16, 2010 from: Beverly Blair Harzog
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Answered By Beverly Blair Harzog: What a wonderful trip you have planned! For a journey like that, you're probably going to be out of the country for a while. You need to think not only about getting rewards miles, but also about avoiding foreign transaction fees, which are basically, currency conversion fees. Most credit card issuers charge 3 to 5 percent for foreign transaction fees.

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Capital One's credit cards don't have foreign transaction fees. There are many good ones to choose from, but you can start by taking a look at the Capital One Venture Rewards Credit Card. This card offers double miles on every purchase and there's no limit to the miles you can earn. There's a $59 annual fee after the first year, but the regular 13.9 percent APR is pretty good for a rewards card.

Until recently, your best bet for a credit card with no foreign transaction fees was a Capital One card. I still like Capital One cards for foreign travel, but now a few other card issuers are being nice for the holidays. Chase has eliminated the foreign transaction fee on their new British Airways Visa Signature Card. If you plan to use British Airways (BA) during any part of your trip, this is a good card to have in your wallet. You get 2.5 BA miles for every dollar you spend on BA purchases. And you get 1.25 miles for every dollar you spend on other purchases. Best of all, no foreign transaction fees.

If you're a member of the Pentagon Federal Credit Union, you can check out the PenFed Premium Travel Rewards American Express Card. There are no foreign transaction fees and you get five points for every dollar spent on airfare plus much more.

This question is about:  Credit Card Rates / Fees
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