New credit card cuts costs for holiday spending

Published on 1 January 1970 by Raffick Marday

We all know that holidays can be expensive, especially as there are always so many little details which are difficult to prepare for in advance.

In the red

Making matters worse, however, is that traditionally Brits have been slapped with extra fees every time they’ve made a foreign transaction with their cards.

That’s why it’ll come as good news for many that Capital One is launching a credit card which doesn’t charge any fees at all – and it even offers 1.25% cashback when used within the UK.

This is the latest of a growing trend for credit card companies to abandon these fees, which is proving popular as many consumers feel particularly negative towards receiving additional charges.

Usually cards charge 2.75% extra each time the card is used abroad, whether that’s while shopping, eating out or just withdrawing cash from a machine.

The Aspire World credit card is a break from that – however, there will still be charges when an ATM is used. Since withdrawals attract a far higher interest rate, using credit cards at ATMs is only recommended in an emergency.

It’s not the only credit card which is hoping to win holiday-makers over with its competitive rates. Post Office Platinum, Nationwide Select and the Aqua Advantage card also do not enforce fees when it comes to usage abroad.

The news is especially relevant following a recent study by Skycanner, detailing that Brits have been spending lots of their cash in the airport before they even land in the destination country.

One in five of us now say that we’re guilty of these overspending patterns in airports, and these habits spill over into the actual holiday too, with 55% spending more on food than anticipated and 30% spending more than expected on nights out.

Skyscanner's Victoria Bailie said: “With so many British holidaymakers spending more than they intended during their last holiday, money management clearly goes out of the window as soon as travellers reach the airport.

“With many people spending more than they budget, it would seem British holidaymakers are far from thrifty when having fun in the sun.”

A prepaid card can help you stick to a budget while overseas, helping to ease the financial strain on your return.

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