Traveling abroad can be expensive, especially when hidden fees add up. A travel credit card with no foreign transaction fees is essential for frequent travelers who want to save money while enjoying rewards and perks. In 2025, several UK credit cards cater to travelers by offering no extra charges on international purchases, along with travel insurance, cashback, and reward points.
1. Why Choose a Travel Credit Card?
A travel credit card is designed for those who frequently spend money overseas. Unlike regular credit cards, these cards do not charge foreign transaction fees, typically 2-3% on every international purchase. Many travel credit cards also provide additional benefits like airport lounge access, travel insurance, and airline rewards.
Key Benefits:
- No Foreign Transaction Fees on purchases abroad
- Cashback & Rewards for travel-related spending
- Airport Lounge Access and other exclusive perks
- Travel Insurance for added security
- Competitive Exchange Rates for better value overseas
2. Best Travel Credit Cards in the UK (2025)
Here are some of the top UK travel credit cards offering no foreign transaction fees in 2025:
1. Halifax Clarity Credit Card
- Annual Fee: £0
- Foreign Transaction Fees: None
- Perks: No cash withdrawal fees abroad (interest applies), competitive exchange rates
- Best For: Budget-conscious travelers looking for a no-fee card
2. Barclaycard Rewards Credit Card
- Annual Fee: £0
- Foreign Transaction Fees: None
- Perks: 0.25% cashback on all purchases, no ATM withdrawal fees abroad
- Best For: Travelers who want rewards and free ATM withdrawals overseas
3. Chase UK Debit Card (Credit Alternative)
- Annual Fee: £0
- Foreign Transaction Fees: None
- Perks: 1% cashback on all purchases for the first year, free ATM withdrawals abroad
- Best For: Those who want a debit alternative with travel perks
4. American Express Preferred Rewards Gold Card
- Annual Fee: £0 for the first year, then £160
- Foreign Transaction Fees: None
- Perks: Earn Membership Rewards points, free airport lounge passes, travel insurance
- Best For: Frequent flyers who value travel rewards and luxury perks
3. How to Choose the Best Travel Credit Card
When selecting a travel credit card, consider the following factors:
- No Foreign Transaction Fees: Ensure your card does not charge extra for purchases made abroad.
- Annual Fees: Some cards have annual fees but provide valuable travel perks that may outweigh the cost.
- Rewards & Cashback: Choose a card that offers points, cashback, or travel-related rewards.
- ATM Withdrawal Fees: If you need cash while traveling, look for a card with no or low cash withdrawal fees.
- Additional Perks: Features like free airport lounge access, travel insurance, and airline rewards can enhance your travel experience.
4. Tips for Using a Travel Credit Card Wisely
To get the most out of your travel credit card, follow these best practices:
- Use It for Foreign Purchases to avoid currency exchange fees.
- Pay Your Balance in Full Each Month to avoid interest charges.
- Take Advantage of Rewards & Perks by using the card for travel-related spending.
- Avoid ATM Withdrawals Unless Free as some cards charge interest immediately.
- Inform Your Bank Before Traveling to prevent your transactions from being flagged as suspicious.
5. Common Mistakes to Avoid
- Not Checking Fees: Some travel credit cards may still have hidden charges—always read the fine print.
- Paying in GBP Instead of Local Currency: Always choose to pay in the local currency to get the best exchange rate.
- Missing Payments: Late payments can lead to high-interest charges and damage your credit score.
- Ignoring Expiry on Rewards Points: Some cards have rewards that expire if not used within a certain timeframe.
6. Final Thoughts
A travel credit card with no foreign transaction fees is a smart choice for anyone who travels frequently. By selecting the right card, using it strategically, and maximizing rewards, you can save money, enjoy exclusive travel perks, and make the most of your international trips in 2025.