What is the best credit card for a student to use while studying abroad? ☆ Every student who has ever considered studying abroad has been asked questions regarding finances.
“How are you going to fund it?” “What are you going to do for money?” “Do you think money grows on trees?”
Traveling abroad? Want to take a credit card? We gotchu.
No, mom and dad, lucky for us there are loads of resources (especially right here on GoAbroad!) helping students find affordable ways to have meaningful travel experiences. In fact, GoAbroad has dozens of articles detailing out low-cost programs, scholarship opportunities, cost-saving tips, and inexpensive destinations to help us make our dreams of studying abroad a reality!
The truth is, most students don’t have savings worth the average cost to study abroad (we have books, pizza, and tasty bevvies to buy!) But the other truth is—with some research, temporary lifestyle adjustments (hold the starbucks but add the part time job), and money-saving determination, anything is possible! And if you're reading this article, it seems like YOU have made or will make it possible!! Congrats!
The cost-saving tips don’t end in your home country, you also need to think about your personal expenses abroad. Maybe you can’t cut costs on housing or excursions since those prices are often included in the program fees, but you still can be smart when it comes to day-to-day living. One expense that no student traveler should EVER have to incur are those nasty foreign transaction fees that secretly creep up on you.
First things first: Some FAQs on study abroad credit cards
Why do you need a study abroad credit card? To book that last minute weekend trip, duh!
Before we get to our list of the best credit cards for college students studying abroad, we want to square away a few details, like…
What is a foreign transaction fee? It’s a fee charged for a purchase processed through a foreign bank or in foreign currency. So if you have a basic US credit card and make a purchase in Spain—they will charge you a % of the cost (around 3%). While it may seem small, these little fees can add up BIG time.
Do we really need credit cards for study abroad? YES! Emergencies happen everywhere. You don’t want to hop on the plane with a huge wad of cash on you (pickpocketers are real), which means you will need to be taking money out of an ATM. Imagine being stuck cashless with the only ATM nearby “Out of Service” and not have any other way to pay for expenses! Here is just ONE example of when the credit card saves the day (it also saves the day when you don’t have enough cash for those unexpected pricey gifts you decide to buy for fam back home, or the once-in-a-lifetime opportunity for adventures like skydiving, or the unfortunate time you end up in the hospital with Delhi Belly...you get the picture).
So if I need to bring a credit card, but don’t want to rack up foreign transaction fees, what should I do?? Enter the beautiful world of Travel Credit Cards without foreign exchange fees plus other perks to go along with your new study abroad lifestyle. But in the sea of financial institutions and co-branded cards, what is the best credit card for a student to use while studying abroad? Read on to find out what we think is the best credit card for college students traveling abroad!
The best study abroad credit cards in 2019
*Be still our card swiping heart!* Get your hands on one of these credit cards for study abroad students before your travels this year.
1. Capital One Journey Student Rewards Credit Card
We list this as one of the best credit cards for college students traveling abroad because it was literally designed for students. That means your age and limited credit won’t count against you when you apply. It’s not the best card for other travel rewards, but for an easy way to establish credit history (hello adult world!) and a quick increase in credit-line once you prove you can make payments on time, it’s a great card to get started with! Here’s what you need to know about the Capital One Journey Student Rewards Credit Card:
- Perks: No annual fee, No foreign transaction fees, 1% cash back on all purchases—or 1.25% cash back for the month with an on-time payment, easy use worldwide, 24-hour travel assistance
- Costs: If you pay your card in full and on time each month, NO FEES! (A monthly balance carried over will incur interest called APR, and late payment will incur a late fee)
- Apply now
2. Discover It Student Chrome Credit Card
Another one of the best credit cards for students studying abroad because it, too, was designed with students in mind! It even has a statement credit for good grades! One drawback is that Discover It cards are not widely accepted internationally, so you’ll want to check their website to determine if it will work for your destination. It also doesn’t offer travel assistance outside of the US. But Discover It is known for being extremely customer-friendly, a big plus for students new to travel credit cards, and has many security features.
- Perks: No annual fee, No foreign transaction fees, 2% cash back at gas stations and restaurants—1% cash back on all other purchases, they will MATCH all of your cashback at the end of the year for the first year, $20 statement credit for annual 3.0 GPA
- Costs: If you pay your card in full and on time each month, NO FEES! Offers 6 months of 0% APR on new purchases (so you can get the hang of paying on time before any interest charges pop up), then normal interest will kick in
- Apply now
3. Discover It Student Cash Back Credit Card
Discover It makes our list again due to the cash back perks of their Cash Back card! It has many of the same advantages and disadvantages of the Student Chrome Card. The biggest difference is the 5% cash back categories each quarter—so if you're interested in seeing how much you can spend and get back, this may be the one for you.
- Perks: No annual fee, No foreign transaction fees, 5% cash back in different categories each quarter (Amazon, groceries, restaurants, and more)—1% cash back on all other purchases, they will MATCH all of your cashback at the end of the year for the first year, $20 statement credit for annual 3.0 GPA
- Costs: If you pay your card in full and on time each month, NO FEES! Offers 6 months of 0% APR on new purchases, then normal interest will kick in
- Apply now
4. Bank of America Travel Rewards Credit Card for Students
Bank of America has an awesome Travel Rewards Credit Card for those with great credit—but don’t worry if your credit is still on the climb. They have a “For Students” version of it, too! This is an excellent choice for a study abroad credit card if you want to keep traveling in the years to come as it welcomes you to the spectacular world of reward points! You rack up points with every purchase and can redeem them for travel expenses like flights, baggage fees, hotels, and more. It also has Chip and Pin technology for ease of use around the globe.
- Perks: No annual fee, No foreign transaction fees, 1.5 points earned per dollar spent, 25k bonus points for spending $1,000 in the first 90 days (definitely a must-do!), more benefits if you're a BOA bank customer already
- Costs: If you pay your card in full and on time each month, NO FEES! Offers 12 months of 0% APR on new purchases (so no interest for a full year!)
- Apply now
Speaking of points—I can’t write an article about best credit cards for college students studying abroad without talking about a few of the best reward cards out there for ANY traveler! Since these aren’t necessarily designed for students, you will need to already have a decent credit score to be eligible.
5. Barclaycard Arrival Plus World Elite Mastercard
As a credit card for study abroad students, the Arrival Plus card offers wide accessibility in foreign countries with Chip and Pin technology. The rewards system is VERY easy to understand and use, so it’s great for students wanting to try their hand in the points and miles game. The two miles (points) gained per dollar spent can be used on ANY travel expense, plus you’ll get 5% of your miles back each time you use them.
- Perks: No foreign transaction fees, 2 miles earned per dollar spent, 60-70k bonus points for spending $5,000 in the first 90 days, free concierge services just a phone call away, trip-related insurance when using your card.
- Costs: The annual fee is WAIVED the first year (meaning its free your first year!) then an annual fee of $89 if you decide to keep it.
- Apply now
6. Chase Sapphire Preferred
While there isn’t actually a Chase bank study abroad credit card, their Sapphire Preferred card is one of the greatest cards around for travelers—that’s why it still is an option as a possible best credit card for study abroad students. Their rewards program partners with some of the most popular names in travel (United and British Airways to name a few) to which you can transfer your points directly—a great value! You will need to do some research to find out how to get the most out of this card, but you will be very, very glad that you did. Beginner travel hackers—this one's for you!
- Perks: No foreign transaction fees, 2 points per dollar on travel and dining expenses, 1 point per dollar on all other purchases, 50k bonus points for spending $4,000 in the first 90 days, trip-related insurance when using your card
- Costs: The annual fee is WAIVED the first year (meaning its free your first year!) then an annual fee of $95 if you decide to keep it.
- Apply now
More tips for your study abroad credit card
Don’t leave your credit line hanging—time to build it up!
Yes, sometimes being a student credit card holder or opening a new card can be scary. That big D word—debt—can and does happen all too often to young people. But with travel savvy tips and a bit of responsibility, you can’t go wrong!
Did I mention points?—Yes yes, that’s right I did! And I’ll mention it again because it’s the best way to travel! With a travel rewards card that racks up points or miles (BOA, Barclay, and Chase listed above for example) you will want to use your card on every purchase possible to get the most bang for your buck. You’ll earn points for money you’d be spending anyway and be able to cash them in for pricey domestic and international flights. Helllooooooo more meaningful travel!
Don’t spend more than you have!—While you do want to gain as many points (or cash back) as possible, you DON’T want to simply swipe that card for what you can’t afford to pay back. You're trying to keep your costs down, so there’s no point in overspending on you card, carrying a balance, and adding interest onto what you already owe. Point in blank, PAY YOUR MONTHLY BILL ON TIME AND IN FULL! You want to BUILD your credit score, not send it crashing down. Track your budget carefully to ensure you’re in the green.
Responsibility matters. A lot.—Want to ask for a higher credit line? Or a lower interest rate? Then you better be managing your study abroad credit card responsibly. Banks are happy to make their customers happy. If you’re paying off your balance regularly, never late with payments, and keeping your account secure, banks often will meet your request. This goes a long way when you do accidentally make a late payment while traveling. They’ll check your clean record and give you a break.
Get Mom or Dad to help—If you aren’t ready to open your own card, or your credit score isn’t cutting it for one of the bigger rewards cards, try convincing Mom/Dad/Trusted adult to apply for a card in their name. You can be added as an authorized user and ease into the credit card arena. Yes, your parents will be able to see how much you spend and what you spend on (how MUCH ice cream can you eat?!), but it’s worth it for the safety net they can provide. You definitely won’t miss a payment with more eyes on the bill, and your credit score will be merrier.
Set a travel notice—Inform your credit card company in advance that you will be traveling. There’s usually an option in your online account to set a travel notice. Let them know which locations you're traveling to and your dates of travel. If they suspect unusual activity they will temporarily freeze your account—and you don’t want them to freeze it when YOU are using it abroad.
Pay in the local currency—When you swipe your card, there’s often an option to pay in your home currency price or in the local currency price. ALWAYS choose the local currency. The exchange rate then goes through your personal bank, which is better than the exchange rate you’ll be offered there.
No cash advances—While it sounds nice (using your credit card like a debit card for some cash money), it’s NOT NICE. It comes with hefty fees and looks bad to lenders. Keep your ATM card for the ATM and credit card for the credit.
Don’t get caught moneyless—Part of being travel savvy is ensuring you have what you need with you at all times. That means always carry some cash to use at the spots that don’t accept cards, and always carry a card for when you don’t have enough cash! Sounds simple? It actually is! (Add in always carry an ATM card for when you need to take out more cash and you're a financial pro).
More financial resources for study abroad students
Your face when you realize Amazon doesn’t deliver to your study abroad destination...
Money matters + study abroad extend far beyond what’s in your wallet. Here’s a slew of additional resources to help you pay for study abroad, beyond the best credit card for students studying abroad.
Affordable programs
Money tips
- How to Pay for Study Abroad
- Breaking Down Your Study Abroad Budget
- 15 Little-Known Fundraising Ideas for Study Abroad
Scholarships
- 45 Scholarships for Study Abroad Around the World
- 10 Programs that Offer First-Gen & Minority Study Abroad Scholarships
- How to Write the Words that Win Travel Abroad Scholarships
Last tip: Don’t forget to pack your study abroad credit card!
Cheers to fiscal responsibility & travel!
Take it from us, even if you only use it for dire emergencies, you STILL don’t want to leave home without it! We’ve laid out reasons why it matters to have a credit card for study abroad, the importance of a credit card without foreign exchange fees, THE best credit cards for study abroad students, and the top tips to use your study abroad credit card wisely! Now the easy part goes to you!
Check the links we provided above to gather more information, weigh your personal pros and cons, and fill out that application. Then get ready to reap the rewards from BOTH your study abroad program and your study abroad credit card.
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