Using Wrong Credit Card Abroad is Costing Brits

Nationwide has revealed that the average UK holidaymaker spending an unnecessary £81 in credit card fees when holidaying overseas by using the wrong credit card.

Majority of UK credit cards levy fees on spending overseas from anything up to £1.50 added to a 2.75 per cent interest charge on purchases every time the card is used abroad.

This adds up to holidaymakers being charged £81 in fees over the course of a foreign holiday by their credit card provider.

However, not all credit cards levy these charges for foreign expenditure as there are credit cards on the UK market that are geared towards use on foreign trips with appropriate interest rates and charges.

Jeremy Wood, divisional director at Nationwide, said: "Whilst recovering from the big Christmas spend, those planning to go abroad this winter should be aware of the hidden charges that most card providers impose which people can ill-afford at this, or anytime of the year."

UK credit card holders are likely to see their balances hit with more charges as credit card use abroad is becoming increasingly more popular.

Rob Kenley from online comparison site Moneysupermarket.com, said: "You could be left with more than a tan if you don't think about how to handle your debt when you come home.

"If you are one of the 41 per cent of credit card holders who fail to clear their balance at the end of each month you could be wise to transfer your debt onto one of the 49 zero per cent balance transfer deals available in order to minimise the amount you will pay in interest."

He added: "You would be advised to begin saving towards paying off the balance when the zero per cent deal ends."

Alisdair Milton
15th January 2007

More Information:

• Credit Card Charges
  Credit cards appear to have only one cost to a user – the interest charged on purchases, but there are a whole raft of hidden charges just lurking below the surface. So, some cards offer an annual payment option in return for certain benefits. What is the best option, and in what circumstance
• Making Credit Card Fees Easier To Understand
  On average, UK credit card issuers make somewhere between £300 and £400 million a year in fees charged off of UK credit card users who have not fully understood how the credit card issuer has arranged the charging of their fees and who do not complain directly to the card issuer for any excessive or incorrect fee charges. In anyone’s language, this is a staggering amount of money!
• How To Avoid Paying Those Pesky Credit And Debit Card Fees
  It seems that UK credit and debit card providers would like to charge us each and every time we use our plastic cards these days. While the charge for each separate individual transaction may not seem like much, add them up over a month or two and suddenly the amount has some value. So, how do we avoid having to pay pesky fees to UK credit and debit card providers?

More UK Credit Card News
Try our feed