Key Takeaways:
- Choose a credit card with no additional foreign transaction fees to save on international purchases.
- Earn bonus points or cashback on flights, hotels, and other travel expenses.
- Look for travel perks like insurance and baggage coverage for added peace of mind.
Your child is ready to take on their next big adventure abroad, and while you’re helping them pack, it’s the perfect time to think about their credit card. A great card helps them build credit and offers valuable travel perks and extra security while exploring. Here’s what to consider when choosing the perfect card for your globe-trotting student.
How do chip and PIN cards work?
Chip and PIN cards, developed by the major credit card networks Europay, Mastercard, and Visa (EMV), were introduced in Europe in 1993 and are still more common there than in the U.S.
These cards were created to reduce credit card fraud, specifically theft and skimming at point-of-sale transactions. In October 2015, the U.S. required all merchants to accept EMV cards or take on liability for any fraud that occurs at their store.
So, how do these cards work? Instead of the traditional magnetic stripe, chip, and PIN cards feature a small metallic chip that stores your payment information. This chip generates a unique PIN code for each foreign transaction, making it much harder for thieves to replicate your card for fraudulent use.
Which travel credit card will kickstart your child’s financial journey and adventures?
Choosing the best travel credit card for students isn’t just about earning rewards—it’s about setting them on a path to financial independence while enjoying travel perks. Here are some excellent options to consider:
- Bank of America® Travel Rewards Credit Card
- Rewards: You can earn 1.5 points per dollar on all your credit purchases and 3 points per dollar at the famous Bank of America® Travel Center.
- Redemptions: Use points for travel credits or cash rewards, with no limit on bonus points.
- Fees: $0 annual fee and foreign transaction fees.
- Welcome Bonus: Earn 25,000 online bonus points (a $250 statement credit for travel) after spending $1,000 in the first 90 days.
This card is a solid, no-hassle option for students who want to build credit while earning flexible travel rewards.
- Capital One Quicksilver Cash Rewards Credit Card
- Rewards: Unlimited 1.5% cashback on all purchases.
- Welcome Bonus: Earn $200 after spending $500 within the first 3 months.
- Fees: $0 annual fee and extra fees for foreign transactions.
This card is ideal for students seeking an easy-to-use rewards card without committing to significant spending thresholds.
- Chase Sapphire Preferred® Card
- Rewards: Earn 2x points on travel (flights, hotels, public transit), 3x points on dining, and 5x points on Lyft rides (through March 2025).
- Transfer Options: Points can be transferred 1:1 to frequent flyer programs like United MileagePlus or Aer Lingus AerClub.
- Fees: $95 annual fee.
- Welcome Bonus: Earn 60,000 points (worth $750 toward travel through Chase Ultimate Rewards®) after spending $4,000 in the first 3 months.
Though not specifically for students, this card is great for those ready to explore the world of points-based travel rewards. For additional student travel discounts, check out the reliable airline student offers for great deals.
What to know before shopping for your child’s travel credit card?
- What will they use the card for?
Consider your child’s spending habits. Will the card be used as their primary payment method, just for emergencies, or a mix of both? Understanding this helps you choose the right card. Even for limited use, having a card with solid security and fraud protection is important, especially abroad.
- Are credit cards for traveling abroad widely accepted where they’re going?
Credit card use varies by country. For example, while cash is more common in countries like Namibia, nations such as the U.K. and Sweden are nearly cashless, and credit cards for students studying abroad are widely accepted.
Be sure to research your child’s destination to understand the most common payment methods.
- Which cards will work there?
Visa and Mastercard are widely accepted in over 200 countries, making them the safest option for international travel. American Express, accepted in around 160 markets, may not be as convenient for some destinations.
How do foreign transaction fees and exchange rates affect spending?
Foreign transaction fees usually add up to 3% of each purchase, which can quickly become costly, especially if your student is abroad for an extended period or using their credit card as their main payment method. For example, a $1,000 purchase could end up costing an extra $30 in fees.
However, many of the best international credit cards for students don’t charge foreign transaction fees, which can help save money (more on those cards later).
Another consideration is the exchange rate. These rates can change daily, and the rate used by your credit card might differ from the one you see when you make a purchase. This means the cost in U.S. dollars may vary.
To keep track of costs, credit card companies often provide online calculators. For instance, a €50 transaction today may not be the same price in USD next week or next month. Both Visa and Mastercard offer currency converters to help you calculate the cost in U.S. dollars.
Should I add my student to my credit card or get them their own?
Instead of giving your child their own self-credit card, consider adding your children as an authorized user on your personal account.
The decision comes down to a few factors: your comfort with adding a new line to your account, your child’s credit limit (you likely don’t want them traveling with a low limit), and how responsible they’ve managed money.
What are the helpful tips for getting a credit card as a student?
Getting your first credit card is a big step toward financial independence. Follow these tips to choose the right card and manage it wisely:
- Define Your Purpose: Decide if the card is for daily spending, credit building, or travel. Clear goals help you pick the right fit.
- Start with Student-Friendly Cards: Look for student travel credit cards designed for students, offering no annual fees and simple approval processes.
- Maximize Rewards: Choose a card that matches your lifestyle, whether it’s cashback, travel points, or dining rewards.
- Build credit Responsibly: Pay off your balance every month to avoid interest and boost your credit score.
- Avoid Unnecessary Fees: Pick a card with no foreign transaction fees if you’re studying abroad and low annual costs.
- Leverage Intro Offers: Take advantage of sign-up bonuses or promotional interest rates to save on big purchases.
- Read the Details: Understand the card’s APR, late fees, and terms to avoid surprises later.
- Stay on Budget: Track your spending and pay on time to avoid penalties and debt.
- Monitor Your Progress: Use free tools bank issuers provide to monitor your credit score.
- Limit Applications: Apply for one or two cards to avoid lowering your credit score with multiple inquiries.
By following these insightful tips, you can enjoy the elite perks of student travel credit cards while building a strong financial foundation for the future. For budget-friendly travel tips, don’t miss the low fare calendar for affordable options.
Summing up
Choosing the best credit cards for international travel for students can set your child up for financial success and smooth travels abroad. By considering key factors like foreign transaction fees, rewards, and security features, you’ll ensure they have the best card for their journey.
