Many have a wide range of opinions when it comes to the need or use of credit cards. First, let’s look into a few pros and cons of taking a credit card with you on your travels. Then, we’ll explore what you may want to have included in your credit card benefits package.

Pros:

1. You are able to carry a large amount of money with you at all times. With a credit card, the limit of funds in your wallet (and now phone) is only capped by the amount your credit card company sets. This gives you freedom and peace of mind to cover any unexpected costs that can range from a must-have necklace or pricey drink to a flat tire or missed flight.

2. You’re not using your money. That’s right. The credit card company is lending you money that you will eventually pay back. So, if your credit card gets stolen or there are some fishy charges that pop up, your personal funds are safely tucked away in your bank account. Instead of you, the credit card company can worry about getting their money back that was stolen.

3. There are perks! The perk of all credit cards is that it builds your credit score, which is invaluable to an American when it comes to large purchases like a car or a house. A better credit score means you get more perks available to you on a credit card. These perks can range from a higher dollar amount limit and lower interest rates to cash back and free flights.

4. Better Exchange Rate: When bringing cash to another country, the middle man has to get their cut somehow. That comes from charging you a little more for your cash than the national exchange rate. Although extracting money from a bank is usually an equally good option for the best exchange rate, you may, more often than not, get hit with charges for using an out-of-network ATM. However, we’ll talk more about that later.

5. Easy Transition: Credit card companies are very aware of the traveler. Now, you can just go online and alert your credit card company that you will be traveling. Done! It’ll work with no problems, and you won’t have to wait to have access to your money. Even if you are moving, keep your credit cards, especially VISA logo cards. Mastercards work in many places as well.

Cons:

1. Not all places take credit cards: Specifically, if you are traveling to a developing country or a country where the exchange rate is much lower than your own, chances are that there will be a limited number of places where you will be able to use your credit card. It may be that all your food, ground travel, material goods, etc., will have to be paid with cash.

2. Not all Credit Card Companies are accepted: American Express and Discover Credit Cards, along with other lesser-known cards, are not always accepted outside of the United States, especially in third-world and developing countries. Do your research.

3. Identity theft: Pickpocketing and theft are on the rise. Not only can a thief outright steal your credit card, but they can also steal your information from a vendor where you used your card or they may walk right past you with a chip reader.

4. I may get crazy: You may find having all this extra spending money too irresistible to pass up and find yourself with unnecessary debt. (In this case, there are a few pointers we will talk about later)

5. APR (Annual Percentage Rates): which is a fancy word for an interest rate. Check what the APR would be for the credit card(s) you are looking into. If you will not be paying off your balance each month, you could be hit with some high interest fees.

6. Lesson: As much as humanly possible, pay off your credit card bill completely