What to look for in a travel credit card and what most people miss

Most of us spend hours planning a trip. We compare flights, read hotel reviews, obsess over packing lists. But not everyone thinks as carefully about the card they use to book with and take with them.

It's an easy oversight, but it's one that costs money on every trip. The card you use can make a real difference to what you actually spend and to what you get back. Here's what to look for and what most people don't think to ask.

The hidden cost of using the wrong card abroad

The most common issue when spending abroad is foreign transaction fees. Most standard UK credit and debit cards charge a fee - typically around 2.99% - every time you spend in a foreign currency. It doesn't sound like much, but across a week-long trip with regular spending on meals, hotels and activities, it adds up faster than you'd expect.

There's also a trap called dynamic currency conversion. This is when a foreign merchant offers to charge you in pounds rather than the local currency - it sounds convenient, but the exchange rate they apply is almost always worse than your card's rate. The safest move is always to pay in the local currency and let your card do the conversion.

A card with no foreign transaction fees removes both of these problems entirely. You spend, your card converts at a fair rate and nothing extra is skimmed off. For anyone who travels more than once or twice a year, this alone is worth thinking about when choosing a card.

Rewards that actually match how you travel

The second thing to look at is what you get back. Lots of cards offer rewards, but the question worth asking is: rewards on what, exactly?

A points scheme that’s restrictive or only really usable when spending in the UK isn't much use to a frequent traveller. The more suited your rewards card is to how you spend daily and travel, the more useful the rewards become.

It's also worth checking how you can redeem those rewards. Some schemes are pretty restrictive - points that expire, redemptions locked to a single airline or hotel chain, or cashback that only appears once a year or as a statement credit you can barely track. The best schemes are flexible, transparent and usable.

A good test: before you sign up for any rewards card, look at what you spent money on in the last three months and ask whether the card's reward categories actually match that. If they don't, the rewards matters less than they look.

The perks worth having (and the ones that aren't)

Premium travel cards often come with a list of benefits - lounge access, concierge services, airport transfers and so on. Some of these are valuable. Others are present mainly to make the card sound impressive.

For most people travelling regularly, the perks that tend to deliver real value are:

No foreign transaction fees - as covered above, this is a functional saving rather than a perk, but it's one of the most consistently useful features.

Travel insurance - if the card covers you for trip cancellation, medical emergencies and lost luggage, it may replace a policy you'd otherwise buy separately. Check the terms carefully though; coverage varies a lot from card to card.

Airport lounge access - useful if you travel frequently, but worth checking whether the lounges included are actually in the airports you use. A lounge at an airport you never fly from isn't worth much.

eSIM access - without an eSIM, roaming charges can be eye-watering and really take the wind out of your sails on a trip. Some cards now offer eSIMs as part of their travel features which means one less extra product and app to think about.

Experience access - this one is underrated. Some cards offer curated rewards and access to cultural events or experiences that can really transform a trip. For someone who values that side of travel, it can be one of the most tangible benefits on offer.

The perks that tend to be less useful in practice: extremely high sign-up bonuses with complicated qualifying conditions, rewards tied to a single brand and benefits with so many terms attached that claiming them is more hassle than it's worth.

How Yonder approaches travel

The premium rewards card we’ve created at Yonder is an option to explore for someone who sees travel a regular part of life, with benefits designed for every part of the trip.

From booking to boarding pass

When you’ve decided where to go, you can earn or redeem points on flights with no restrictions on destination, time or airline, plus on hotels and car hire. Members have airport lounge access with No.1 Lounges and Lounge Pass, plus in-app eSIM access to 120+ countries to take away the stress when you’re preparing to fly.

Feel at home while abroad

When you land, no FX fees mean your spending abroad converts at a fair rate without any extra charges applied. You earn points on everyday spending at home and abroad which means your rewards accumulate in line with how you actually live - not just when you hit a specific category or threshold. Plus, you can relax in the knowledge you’re covered by worldwide travel insurance.

Experiences to remember

And beyond the card itself, providers like Yonder offer curated city guide recommendations and experiences with partners like GetYourGuide. The idea is that the card helps you to really experience a place, not just visit.

If you're looking for a card built around how modern travellers actually travel, explore Yonder and claim two months free on the full membership if you join via this exclusive link for Smart Money People readers.

Borrow responsibly. £15/month. 18+ and UK only. Rep 65.1% APR var. Cover subject to eligibility and exclusions. Flights are subject to fair use. T&Cs apply.

Thanks to Yonder for contributing this guide. As with any financial product, make sure you read the full terms before applying to confirm it suits your circumstances.

*This article is a paid advertisement in collaboration with Yonder. It’s intended for informational and educational purposes only and does not constitute financial advice.