How to use your credit card to shop smart while abroad

A credit card is one of the best ways to pay while traveling abroad. With just one tap, you can pay for all sorts of goods and services conveniently. Plus, you don’t need to carry too much cash, which makes traveling safer and more flexible.

That said, using a credit card overseas comes with its own set of challenges — things like foreign transaction fees, currency conversion charges, interest rates, and more. To help you get around these and save more, here are some tips on how to shop abroad wisely using a credit card.

How to use your credit card to shop smart while abroad

1. Use discounts

One major perk of credit cards that debit cards or ATM cards don’t offer is all the travel promos. For example, say you’re using a 10% Qatar Airways discount for a flight from Adelaide to Jakarta, originally priced at Rp5,000,000. Thanks to the promo, you only need to pay Rp4,500,000. Not bad, right?

Besides flights, credit cards also often come with deals and discounts for other travel-related expenses like hotels, restaurants, or attractions like Universal Studios. For more details on these promos and discounts, you can check out the link provided.

2. Pay with points

The points you earn from your credit card transactions can also help cut down travel costs. For example, 15,000 miles points could get you a one-way economy flight from Jakarta to Singapore. You can even use your points to upgrade your seat from Economy to Business class.

But keep in mind, the exact rules for redeeming rewards depend on the card provider and airline. Points redemption on certain days might vary compared to others. Also, cards with strong point rewards often come with higher annual fees.

3. Use your credit card to pay deposits

According to Novia Kelana’s YouTube channel, one of the big advantages of using a credit card while abroad is that you can use it to pay for deposits. A deposit is an amount of money used as a guarantee before renting items or services abroad.

This usually applies to high-value rentals, like portable WiFi or accommodation. The deposit is returned at the end of your rental period, and the full amount is refunded as long as the items aren’t damaged.

Paying deposits with a credit card abroad doesn’t just help your cash flow, it also minimizes the risk of having your deposit withheld after the contract ends. This isn’t always the case with debit cards — using an ATM card for a deposit could mess with your cash flow, and the refund process tends to be more drawn out.

4. Pay your bill in full and on time

The fourth way to save money when using your credit card abroad is to always pay your credit card bill in full and on time (before or on the due date). By doing this, you won’t be charged any interest or late fees. Especially for Honest Credit Card users, if you pay in full and on time, the monthly admin fee is fully waived.

And the perks don’t stop there — consistently paying your bill on time shows the bank you’re a responsible user, which could open up other benefits like higher credit limits, access to exclusive promos, extra reward points, and more.

5. Choose the right credit card

There are lots of credit card options to choose from. Among them are travel-specific credit cards and the Honest Card. As the name suggests, travel credit cards are designed specifically for overseas trips and often come with perks like airport lounge access or miles points. However, they usually charge a steep annual fee, ranging from Rp250,000 to Rp1,000,000 per year — even if you don’t travel that year.

On top of that, many credit cards tack on a 2–3% foreign transaction fee, which adds up quickly on big purchases. For instance, if you spend Rp2,000,000 in Singapore, that extra fee could reach Rp60,000.

On the flip side, there’s the Honest Card. This credit card doesn’t charge an annual fee, foreign transaction fee, or late fee. It only applies a monthly admin fee, which gets refunded as credit if you pay your bill on time. You can still access tons of shopping and travel promos, both locally and internationally, with this card.

This card also comes with a mobile app called the Honest App. With it, you can track your spending, monitor your card’s security, and even check your credit score. Use the Honest Card and Honest App together for a more practical and budget-friendly way to shop — both at home and abroad. Stop losing money overseas!