Many travellers rely on credit cards whenever they take a trip. They can offer convenience and security, but also occasionally higher fees. What matters more to you? Should you use your cards when you travel or turn to cash and travellers’ cheques?

Let’s look at both the pros and cons of using credit cards when you travel, especially if you travel overseas.

Pros

Here are four good reasons to consider using a credit card while travelling.

• Credit cards offer security with limited liability if they’re lost or stolen. If you carried cash instead and that was stolen, you would lose everything.
• It’s more convenient to carry a credit card or two with you as you travel around your destination than it is to carry cash.
• If you use a frequent flyer credit card like the Earth credit card to book your trips, you may be able to earn frequent flyer points towards future travel.
• Many rewards cards and elite credit cards like the Citibank Clear Platinum card offer free travel insurance that can protect you and help you save money on an independent policy. Book your trip with that card to get the freebie.

Cons

While credit cards have their benefits for travellers, you should also be aware of these potential concerns.

• If you lose your credit card while in a foreign place, it might take a couple of days to get a replacement. Because of this, it’s a good idea to take more than one card with you and keep them separate. This way you always have a backup.
• Credit cards usually charge foreign transaction fees when you travel overseas to cover currency conversions. Those conversion rates can vary, meaning your total fees might be unpredictable. On the other hand with an option like travellers’ cheques, you can lock in a good conversion rate before your trip.

While there are some definite downsides to using credit cards when travelling, the pros will usually outweigh the cons. And those cons are things you can overcome. Do you use credit cards for travel, either to book the trips or while at your destination? What have been the biggest benefits to you?