5 Best Travel Credit Cards for Australians in 2024
Credit cards are an obvious choice for traveling due to their convenience.
Choosing the right credit card for travel can significantly improve your travel experience. It provides benefits such as rewards, travel insurance, and low foreign transaction fees. In this comprehensive guide, we’ll explore the best credit cards for Australians traveling in 2024, discussing their features and benefits and how to choose the right one for your needs.
The Best Credit Cards for Travel:
- Bankwest Breeze Platinum
Lowest Interest Rate - ING One Low Rate
No Annual Fee - Qantas Premier Platinums
For Qantas Frequent Traveller - ANZ Rewards Travel Adventures
Best Insurance Coverage - HSBC Low Rate
Lowest Minimum Credit Limit
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Bankwest Breeze Platinum Credit Card - Lowest Interest Rate
Best Features
- Lowest interest rate at 9.90%
- No international transaction fees on purchases
- 0% p.a. on purchases and balance transfers for the first 15 months
- Up to 55 days interest free on purchases
- Low annual fee
- Complimentary international travel insurance
Bankwest Breeze Platinum Credit Card
- Free annual fee first year, then $69 annual fee
- 55 interest free days
- Free international travel insurance that includes the basics but does not cover cancellation costs, pre existing conditions and travellers over 80
- $6,000 minimum credit card
- 0% p.a. on purchases and balance transfers for the first 15 months, then reverts to 9.90%
- 21.99% interest rate on purchases and cash advances
- Cash advance fee of the higher of $4 or 2% of cash advance
- Can be used wherever Mastercard is accepted
The Bankwest Breeze Platinum is a great no frills credit card that offers ‘no foreign transaction fees’ and the lowest interest rate on the market, at 9.90%. These two factors alone will save you hundreds of dollars when travelling overseas.
In addition it has a low annual fee and complimentary international travel insurance. Finally for its price point it is a great value credit card that will be accepted most places around the world.
ING One Low Rate Credit Card - No Annual Fee and Lowest Cash Advance Rate
Best Features
- No annual fee
- No international transaction fees on purchases
- Up to 45 days interest free on purchases
- Lowest cash advance interest rate of 11.99%
- Use instalment plans to pay off your purchases over time at a lower interest rate
ING One Low Rate Credit Card
- 11.99% interest rate on purchases
- $6,000 minimum credit card
- Make payments from your mobile with pay with Apple Pay and Google Pay
- International ATM fee and Foreign currency conversion fee are waived when you deposit $1,000 into your Orange Everyday each month, and make 5+ card purchases that are settled. Otherwise they are the higher of 3% or at least $3
- Put repayments on auto payment each month to pay the minimum balance or full amount
- Can be used wherever Visa is accepted
The ING One Low Rate credit card ‘does what is says on the packet’ - offers a low interest rate for purchases and cash advances. It is 11.99%. The cash advance interest rate is very low and about 50% less than most of its competitors who charge around 22% on cash advances. In addition the ING One Low Rate credit card has no annual fee.
Finally it has no international transaction fees, so you can save money on your travels and when you buy goods from overseas.
Qantas Premier Platinum Credit Card - For Qantas Frequent Travellers
Best Features
- 90,000 Qantas points for signing up
- No cap on earning points
- Earn 1.5 points per dollar spend overseas
- Earn 1 point per dollar spend in Australia up to $10,000 per statement period
- 2 x single entry Qantas Club or Qantas operated International Business Lounge invitations per anniversary year
- Save up to 20% on selected Qantas and QantasLink flights within Australia for you and up to 8 companions, once every year
Qantas Premier Platinum Credit Card
- 19.99% interest rate on purchases
- $299 annual fee except for first year of $199
- 55 days interest free on purchases
- $35,000 minimum annual income
- Free travel insurance for overseas and within Australia
- Works with Apple Pay
- 3% international transaction fee
- $5 cash advance fee per withdrawal
- 21.99% interest rate on cash advances
- Can be used wherever Mastercard is accepted
The Qantas Premier Platinum credit card is very handy for those who are frequent flyers with Qantas as it offers no caps on earning points, a decent sign up bonus, good earning ratios overseas and in Australia.
In addition card holders receive free travel insurance for overseas and in Australia. However this card has a $299 annual fee, charges for international transactions and has a high cash advance interest rate.
We would recommend using this card to buy Qantas flights and overseas accommodation, if you can pay it off within the 55 days, otherwise it's a costly way to earn Qantas frequent flyer points.
ANZ Rewards Travel Adventures Credit Card - Best Insurance Coverage
Best Features
- Free access to 7 types of insurance including International Travel Insurance
- No international transaction fees on purchases
- Up to 55 days interest free on purchases
- Same interest rate on purchases as cash advances
- Access to ANZ Rewards program, sign up bonus of 40,000 points
ANZ Rewards Travel Adventures Credit Card
- 20.24% interest rate on purchases and cash advances
- $120 annual fee
- $6,000 minimum credit card
- Earn 1.5 Reward Points per $1 spent on eligible purchases up to and including $2,000 per statement period
- Earn 0.5 Reward Points per $1 spent on eligible purchases above $2,000 per statement period
- Works with Apple Pay, Google Pay, Samsung Pay, Fitbit Pay and Garmin Pay
- Can be used wherever Visa is accepted
The ANZ Rewards Travel Adventure credit card offers the widest range of insurance including International Travel Insurance and Transit Accident Insurance when you travel overseas for up to 6 months for people under 80 years of age. Overseas medical expenses, even with a pre-existing condition will be covered with no excess to be paid.
In addition it covers travel cancellations, travel delay, lost luggage, up to $5000 per card holder for rental vehicle car excess. Finally it covers up to $3 million in personal liability for the card holder, their spouse and dependents.
HSBC Low Rate - Lowest Minimum Credit Limit
Best Features
- $1,000 credit limit available
- No international transaction fees on purchases
- Up to 55 days interest free on purchases
- 0% p.a. on balance transfers for the first 20 months (a 2% one-off balance transfer fee applies)
- Free domestic travel insurance
HSBC Low Rate Credit Card
- 12.99% interest rate on purchases
- $99 annual fee
- $40,000 minimum annual income
- 25.99% interest rate on cash advances
- $30 late payment fee
- Cash advance fee of the higher of $4.00 or 3% of the transaction amount
- 0% p.a. on balance transfers for the first 20 months (a 2% one-off balance transfer fee applies), then it reverts to 25.99% p.a
- Works with Google pay and Apple pay
- Can be used wherever Visa is accepted
If you want a credit card with a low limit for ‘just in case emergencies’, then the HSBC Low Rate credit card is a great option. It offers a very low minimum credit limit of $1000. In addition it offers no international transaction fees, 55 days interest free, a low interest rate of 12.99% and a relatively low annual fee of $99.
However its cash advance fees and interest rates are crippling and some of the most expensive on the market so we strongly advise using a different card for international ATM withdrawals.
Why Use a Travel Credit Card?
Travel credit cards offer several advantages over traditional credit cards and other payment methods:
- Rewards: Earn points or miles on every purchase, which can be redeemed for travel-related expenses such as flights, hotels, and car rentals.
- Travel Insurance: Many travel credit cards offer complimentary travel insurance, which covers trip cancellations, lost luggage, and medical emergencies.
- Low Foreign Transaction Fees: Some travel credit cards have low or no foreign transaction fees, saving you money on purchases abroad.
- Travel Perks: Enjoy additional benefits such as airport lounge access, priority boarding, and hotel upgrades.
Key Features of Travel Credit Cards
When evaluating travel credit cards, consider the following features:
- Rewards Program: Look for cards with generous rewards programs, allowing you to earn points or miles on every purchase. Some cards offer higher rewards rates on travel-related expenses.
- Sign-Up Bonus: Travel credit cards offer sign-up bonuses, providing many points or miles after meeting a minimum spending requirement within the first few months. These bonuses can significantly boost your rewards balance.
- Foreign Transaction Fees: Foreign transaction fees can increase quickly when traveling abroad. Look for cards with low or no foreign transaction fees to save money on every purchase.
- Travel Insurance: Complimentary travel insurance can provide peace of mind, covering expenses related to trip cancellations, lost luggage, and medical emergencies. Check the card’s terms to understand the coverage details.
- Travel Perks: Additional travel perks like airport lounge access, priority boarding, and hotel upgrades can enhance your travel experience. Consider which perks are most valuable to you.
- Annual Fee: While some travel credit cards have an annual fee, the benefits and rewards often outweigh the cost. Consider whether the card’s features justify the fee.
How to Choose the Right Travel Credit Card
Selecting the right travel credit card involves assessing your travel habits and financial needs. Here are some factors to consider:
- Travel Frequency: Frequent travelers may benefit from a card with a robust rewards program, generous sign-up bonus, and valuable travel perks. Occasional travelers might prioritize low fees and basic travel benefits.
- Destination: Consider where you’ll be traveling. Ensure the card is widely accepted in the region and offers benefits that align with your travel plans.
- Spending Habits: Analyze your spending patterns to determine the features that matter most to you. For example, if you frequently book flights and hotels, a card with higher reward rates on travel-related expenses is beneficial.
- Budget: Consider whether you can justify the annual fee based on the card’s benefits and rewards. Some cards offer significant value despite a high yearly fee, while others may provide enough benefits with no fee.
Additional Tips for Using Travel Credit Cards
- Maximize Your Rewards: Use your travel credit card for all eligible purchases to maximize your rewards. Focus on categories with higher rewards rates, such as travel and dining.
- Meet the Sign-Up Bonus Requirements: Take advantage of sign-up bonuses by meeting the minimum spending requirement within the first few months. Plan your spending to ensure you qualify for the bonus points or miles.
- Monitor Your Account: Regularly check your account for any unauthorized transactions and report them immediately. Most credit card issuers offer mobile apps that provide real-time transaction alerts.
- Use Travel Perks: Make the most of the travel perks offered by your card, such as airport lounge access, priority boarding, and hotel upgrades. Familiarize yourself with the card’s benefits to ensure you’re taking full advantage.
- Pay Your Balance in Full: To avoid interest charges, pay your credit card balance in full each month. This helps you maintain good credit and maximize the value of your rewards.
Understanding Travel Credit Card Fees
Travel credit card fees can vary, so it’s essential to understand what fees might apply. Common fees include:
- Annual Fee: Some travel credit cards come with an annual fee, which can range from $50 to $550 or more. Assess whether the card’s benefits justify the cost.
- Foreign Transaction Fees: A percentage fee charged on purchases made in a foreign currency. Many travel credit cards offer zero foreign transaction fees.
- Cash Advance Fees: Fees for withdrawing cash from an ATM using your credit card. These fees are typically high, and interest accrues immediately.
- Late Payment Fees: Fees charged if you don’t make your minimum payment by the due date. Paying your balance on time can help you avoid these fees.
- Balance Transfer Fees: Fees for transferring a balance from another credit card. If you plan to transfer a balance, look for cards with low or no balance transfer fees.
Managing Your Travel Credit Card
To get the most out of your travel credit card, consider these management tips:
- Track Your Rewards: Use the card issuer’s mobile app or website to monitor your rewards balance and track your spending. Many apps offer features such as spending categorization and reward redemption options.
- Redeem Your Rewards Wisely: Maximize the value of your rewards by redeeming them for travel-related expenses such as flights, hotels, and car rentals. Some cards offer additional value when you redeem through their travel portal.
- Plan for Foreign Travel: Notify your credit card issuer about your travel plans to prevent the card from being blocked for suspicious activity. Some issuers allow you to set travel alerts online or through their mobile apps.
- Understand the Fine Print: Familiarize yourself with the card’s terms and conditions, including fees, rewards rates, and redemption options. Understanding the fine print can help you avoid unexpected charges and ensure you’re using the card correctly.
Comparing Travel Credit Cards to Other Payment Methods
Travel credit cards are just one option for managing your finances while traveling. Here’s how they compare to other popular payment methods:
1. Prepaid Travel Cards
Pros: Prepaid travel cards allow you to load funds in different currencies, locking in exchange rates before you travel. They offer security features similar to those of travel credit cards.
Cons: Prepaid cards often have various fees, such as loading fees, ATM withdrawal fees, and inactivity fees. They also don’t offer the same rewards and perks as credit cards.
2. Debit Cards
Pros: Debit cards allow you to spend money directly from your bank account, providing a convenient and familiar payment method.
Cons: Debit cards may have high foreign transaction fees and less favorable exchange rates. They also lack the rewards and travel perks of credit cards.
3. Cash
Pros: Cash is widely accepted and useful in places where card payments are unavailable. It also helps you stick to a budget.
Cons: Carrying large amounts of cash can be risky. Exchange rates at currency exchange booths may not be as favorable as those offered by credit cards.
Learn more about the best travel money, debit and prepaid cards for travel
FAQs
You need to choose a credit card that will save you the most amount of money. There are lots of ways to save including no foreign transaction fees, a low interest rate, low annual fee and low interest rate on cash advances.
Foreign transaction fees can be anywhere from 3% to 5%, so if you spend $6000 overseas, $300 will be unnecessarily eaten up by fees. A family overseas can easily spend $10,000, so that is $500 that could be saved. In addition with a ‘no foreign transaction fee credit card you pay less for purchases online from overseas.
You should look for both but keep in mind that most no annual fee credit cards have higher fees across the board like ATM withdrawals, so the amount you save at the beginning will probably be diminished by the end of the year.
Low annual fee credit cards (under $100 per year) tend to have lower interest rates and lower fees across the board, so the amount you save over the year is greater than with the no annual fee credit card.
If you withdraw $300 from an overseas ATM you will be charged a cash advance fee (roughly $12) plus 22% interest from that day. If you do not have a ‘no foreign transaction fee’ credit card, then add another $5 for the international cash advance fee.
In total, it will cost you $17 plus 22% interest to withdraw $300 from an ATM overseas if you do not have a ‘no foreign transaction fee’ credit card.
It depends on your needs, so it's very important to read the PDS provided by the credit card company. Travel insurance offered by credit cards has limitations like age limits, value of cover limits and often pre existing medical conditions are excluded.
Don't forget to check how to activate your travel insurance before you leave as sometimes you have to spend a minimum amount before the travel insurance is activated.
They push the annual fee up. From our research, lounge access becomes a feature once you start paying close to the $300 per year for a credit card.
- To earn a higher return of Qantas frequent flyer points, you need to pay an increased amount for your annual fee.
- To earn 2 Qantas points per dollar spend uncapped, you need to pay a $1,200 annual fee.
- To earn 1.5 Qantas points per dollar spend uncapped, you need to pay a $750 annual fee.
- Most cards close to the $300 annual fee mark will earn 1 Qantas point per dollar spend with a cap of 5,000 per statement.
- Most credit cards with an annual fee under $200 will offer 1 or less than 1 Qantas point per dollar spend with a cap of 2,000 per statement.
