When planning an overseas trip, travelers typically focus on the most obvious considerations such as meals, accommodations and airline tickets. Nevertheless, various aspects of financial management come into play when traveling overseas, both in cultural differences and additional costs.
Here are some financial considerations to remember when traveling:
1. Ensure You Have Travel Insurance
It’s less costly to manage travel disruptions if you have travel insurance to cater to unexpected costs. Most of the top travel credit cards offer travelers some protection, such as trip delay insurance and baggage insurance.
The terms of an insurance contract vary depending on the card issuer. You must pay for your trip in full using your card in many instances. On the other hand, some other issuers might only require you to pay a part of your travel expenses using the eligible card.
Card issuers often implement different limitations on the coverage you get and the expenses that qualify for protection. Ensure you review the specific terms before booking your trip.
2. Inform Your Credit Card Company of Travel Dates
Nowadays, credit card firms can see when you’re traveling overseas. Nevertheless, it’s still worth informing your credit card company and bank of when you intend to travel so that they don’t block transactions while you’re abroad.
Additionally, always ensure you have cash both in AUD and in the official currency of the country you’re visiting. You never know when you might need some money to purchase something.
3. Sign Up for a Travel Credit Card
Consider getting a travel credit card to cater for your travel expenses if you plan to spend a lot of cash and your trip. Travel credit cards frequently reward customers with miles or points redeemed for future travels. This is particularly true if you plan to go on another vacation in the future.
You can redeem cash back rewards to use to pay cab fares or other expenses during your trip. With some premium cards, you can enjoy a priority status at leading restaurants or hotels, as well as VIP lounges in airports, amongst other places.
Establish which card works best for your credit rating. You should also find out whether high-interest rates and other charges are incurred when using your card — signing up for a new credit card before traveling is the perfect time to use the enrollment rewards if the card has a high spending requirement.
You can also enroll for a travel credit card with a sign-up bonus a few months beforehand so that you can use the bonus to pay for your airline ticket.
Alternatively, you can also buy now and pay later (BNPL) travel options. Platforms like Gday Loans can connect you with lenders in Australia who offer buy now pay later no credit check instant approval Australia loans for travel.
4. Think of How You’ll Access Foreign Currency
If you want to avoid the hassle of looking for foreign exchange places once you arrive at your travel destination, you should contact your bank to find out if you can access foreign currency.
Once you arrive at your destination, use local banks or ATMs to access foreign currency, which might provide lower fees and better exchange rates. If you plan to use an ATM while you’re overseas, ensure you check the reverse side of your debit card to identify ATM networks that are compatible with your bank’s card.
5. Have a Backup Plan
Sometimes, unexpected things can happen. For example, your wallet can be stolen, or you can have an emergency medical situation while you’re overseas. For this reason, it’s essential always to have a backup plan.
Have someone you trust back at home to hold some cash for you if you require them to wire you the funds in a foreign country. Ensure you establish beforehand which countries accept money transfers from which companies so that you aren’t stuck.
Also, never carry all your cash; leave some in a safe in the hotel.
Whether you plan to go hiking in the rainforests or travel to a tropical island, it’s essential always to plan ahead of time when you’re traveling far away from home. Keep these tips in mind to ensure you’re not left stranded during your trip.