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3 Credit Cards Without Foreign Transaction Fees

By U.S. News & World Report

Countless Americans throw away hundreds of dollars unnecessarily each time they travel outside of the country, and most people have no idea they’re doing it.

The good news is that it’s easy to stop.

All you have to do is pick the right credit card — one that comes without so-called foreign transaction fees.

What are foreign transaction fees?

Banks charge foreign transaction fees whenever you use your U.S. credit card in a foreign country or make a purchase through a foreign bank. For example, if you buy a bottle of Chianti from an Italian winery’s website and a Lionel Messi soccer jersey from FC Barcelona’s website, you might have to pay foreign transaction fees, even if you place the orders from your home here in the U.S. But Americans most often run across foreign transaction fees when they are traveling overseas.

The fee typically equals 2 to 3 percent of the transaction, but it won’t appear as a separate line item on your statement. It will simply be added to the total cost of the purchase. And while 2 to 3 percent may not seem like a lot when you’re buying a baguette in Paris, it adds up quickly when you consider just how expensive an overseas vacation can be, especially for a family of four. You could be talking about $150 in extra charges on a $5,000 vacation. Bump the cost up to $10,000, and those extra fees could run as high as $300. That’s real money.

In years past, most cards came with these fees. Fortunately, that’s no longer the case. Here are some of the no-foreign-transaction-fee cards to consider for your next overseas adventure.

Barclaycard Arrival Plus World Elite MasterCard

This is typically the top card I recommend for any international traveler. First, it has no foreign transaction fees. It is also one of the few widely available chip-and-PIN credit cards, which will help you avoid possible headaches during your European adventure. The card’s APR starts as low as 14.99 percent and offers double points on all purchases. The $89 annual fee is waived in the first year. And there’s a 0 percent balance transfer offer for the first 12 months.

The card also comes with a 40,000-point signup bonus when you spend $3,000 in the first 90 days. Those 40,000 points can be redeemed for $400 in statement credits toward a travel purchase. As an added bonus, when you redeem points toward a purchase, you get a 10 percent refund. That means that after you give the 40,000 points for the $400 statement credit, you’ll actually get 4,000 points back immediately.

Capital One Venture Rewards Credit Card

This is another good option for foreign travelers. Like the Barclaycard, this card comes with a 40,000=mile bonus once you spend $3,000 in the first three months. It also gives you double miles for every dollar spent and waives the annual fee ($59 in this case) for the first year. Plus, the card’s interest rate starts as low as 12.9 percent.

One reason I can’t recommend this over the Barclaycard: It’s a chip-and-signature card, not a chip-and-PIN card. That means while it might be accepted more often than a magnetic stripe card, it won’t be as widely accepted as a chip-and-PIN card. Thus, if I’m looking to pick just one card to take on a European vacation, it would have to be a chip-and-PIN card.

Still, this card is a perfectly fine second option — especially given the low APR and annual fee.

Chase Sapphire Preferred

This card also comes with a 40,000-point bonus after three months. But unlike the previous two cards, this requires $4,000 in spending rather than $3,000 during that time.

Many travelers swear by this card, in part because you can transfer rewards points from this card to travel partners on a 1-to-1 basis. For example, 40,000 points earned with this card would be worth 40,000 miles in Southwest’s Rapid Rewards program. Not every card provides that option. In addition, you can save 20 percent when you use the card to book travel through Chase’s Ultimate Rewards portal, another way to stretch your rewards point value.

It also comes with no foreign transaction fees, double points for purchases, an APR as low as 15.99 percent and a $95 annual fee that is waived for the first year. Like the Capital One card, it is a chip-and-signature card.

Options Abound

More and more issuers are offering cards that are free from foreign transaction fees, and that trend isn’t likely to end anytime soon. That’s great news for travelers and means that by shopping around you should be able to find a card that fits your needs and can save you some money.

After all, foreign travel is expensive enough. Why pay 2 to 3 percent extra for everything if you don’t have to?

More from U.S. News

Chip-And-PIN Credit Cards to Consider Before Traveling to Europe

8 Ways to Maximize Your Credit Card Rewards

11 Easy Ways to Slash Travel Costs

3 Credit Cards Without Foreign Transaction Fees originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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