The content is accurate at the time of publication and is subject to change.

Credit cards are small plastic cards issued in the name of a person who entitles him to buy goods or even withdraw cash without any money transaction. Basically, it facilitates cashless transactions.

Advantages of Travelling with credit cards

In today`s society traveling, both for business as well as pleasure, has become very easy. This has also increased the reach of credit cards in terms of the spending capacity of an individual. Using credit cards when traveling can be advantageous in the following ways:

  1. Helps in cash free transaction of money - Credit cards save travelers the time and the effort of finding money transfer organizations where their home currency can get transferred into the currency of the visiting destination.
  2. Credit cards are safe - As credit cards facilitate cash free transactions, a traveler does not have to worry about the safe keeping of his cash when traveling to a new destination.
  3. Easy payment - Tourists using their credit cards to pay expenses that they incur during their visit makes it convenient for them until they return home. Credit card bills for the month are given to the card holder after a certain period of time. Companies also allow some extra time to pay the bill before interest gets charged. This allows the individual the time to get the cash ready for repayment.
  4. If you are traveling on company`s allowances then you get to keep the record of the statement of the credit card and then claim your money from the company.
  5. Credit cards when used to get foreign currency, travelers are offered better exchange rates.
  6. To remain in the competition, different credit card companies offer cash back and reward points that can be used to decrease the charge as well as the outstanding balance of the credit card.

Disadvantages of Traveling with Credit Cards

The pre paid credit cards cannot be refilled when in foreign destinations. Therefore, the users need to be very careful that they stay within the budget of the credit card.

  1. In case of any discrepancy in the credit card use, it becomes very difficult to solve problems from overseas destination.
  2. Cash less transaction and the opportunity to spend as much as one wants increases the expenditure of an individual.
  3. If in case where a person, for some reason, is unable to pay the bill amount this will invite interest charges that will increase the net payable amount.

Although the advantages of using credit cards when traveling is far more than the disadvantages but one can reap the benefits of using a credit card with proper planning.