🌍 Travel Credit Cards: How to Save Big While Spending Abroad (UK Guide 2025)

Whether you’re a frequent flyer or an occasional adventurer, having the right travel credit card in your wallet can save you hundreds of pounds. From foreign transaction fee savings to air miles, insurance perks, and lounge access, these cards are designed to reward globetrotters.

In this guide, we break down how travel credit cards work, the best options for UK residents in 2025, and how to choose one that fits your travel lifestyle.

✈️ What Is a Travel Credit Card?

A travel credit card is a type of credit card that offers features and rewards tailored to people who travel internationally. These cards often provide:

• No foreign exchange (FX) fees

• Reward points or airline miles

• Travel insurance cover

• Airport lounge access

• Hotel loyalty perks

They’re perfect for anyone who wants to avoid unnecessary fees and earn rewards while spending abroad.

🔍 What Makes a Great Travel Credit Card?

A top-notch travel credit card typically includes:

💳 Best Travel Credit Cards in the UK (2025)

Here are the top-performing UK travel credit cards based on perks, value, and real-world use in 2025.

🔹 Halifax Clarity Credit Card

• 0% foreign exchange fees worldwide

• No annual fee

• Excellent exchange rates from Mastercard

• 19.9%–27.9% APR (variable)

• Apply at Halifax

Best for: Budget-conscious travellers who want to avoid fees abroad without paying annual charges.

🔹 Barclaycard Rewards Credit Card

• No foreign transaction fees

• 0.25% cashback on all spending

• No annual fee

• Free access to your credit score

• Visit Barclaycard UK

Best for: Those who want a mix of cashback and fee-free overseas spending.

🔹 British Airways American Express Card

• Earn 1 Avios point per £1 spent

• Welcome bonus (5,000+ points if you spend £1,000 in 3 months)

• Companion voucher when you spend £12,000+ annually

• No foreign fee – but Amex is less widely accepted abroad

• Check BA Amex Offers

Best for: Frequent flyers loyal to British Airways and the Avios reward scheme.

🔹 Virgin Atlantic Reward Credit Card

• Earn 0.75 Virgin Points per £1 spent

• No annual fee

• Companion flight or upgrade voucher after £20,000 annual spend

• Visit Virgin Atlantic Cards

Best for: Travellers using Virgin Atlantic for long-haul destinations.

🔹 Chase UK Debit Card (Bonus Mention)

Although not a credit card, the Chase UK debit card is notable for travellers:

• 0% FX fees

• 1% cashback on all spending

• Excellent exchange rate

• Learn more at Chase UK

Best for: Those who prefer a debit option with premium perks.

💷 How Much Can You Save With a Travel Card?

Let’s say you spend £2,000 abroad during a holiday. A regular UK credit card might charge a 2.99% foreign exchange fee — that’s nearly £60 in unnecessary charges. A travel credit card eliminates that fee entirely.

Plus, if you earn 1% cashback or similar value in points, that’s an additional £20–£30 of value in your pocket.

✨ Extra Perks to Look for in a Travel Credit Card

Many travel credit cards go beyond basic FX savings. Some added-value perks include:

• Travel insurance (medical, cancellation, lost baggage)

• Airport lounge access (Priority Pass or LoungeKey membership)

• Flight or hotel upgrades

• Concierge services

• Purchase protection and extended warranties

These extras can be particularly valuable for business travellers or frequent flyers.

🔄 Travel Credit Cards vs Regular Credit Cards

⚠️ Things to Watch Out For

While travel credit cards offer great perks, there are some key considerations:

• Amex acceptance is limited abroad – especially in small European businesses

• Cash withdrawals still incur interest – even if FX fees are 0%

• Annual fees – some premium cards charge £195+

• Earning thresholds – big rewards often require big spend

• Always pay in local currency – avoid poor conversion rates when offered GBP abroad

🧠 Tips to Maximise Travel Card Rewards

• ✅ Pay off your balance in full each month to avoid interest

• ✅ Use your card for all holiday spending – from flights to food

• ✅ Book travel through affiliated partners to earn bonus points

• ✅ Link your card to frequent flyer or hotel reward accounts

• ✅ Take advantage of sign-up bonuses — but only if you can hit the spend target responsibly

🧾 Do Travel Credit Cards Offer Travel Insurance?

Some do — especially premium or business-focused cards. Coverage may include:

• Medical emergencies abroad

• Trip cancellation or delays

• Lost luggage or valuables

• Car hire insurance

Always check the policy wording. You may still need separate travel insurance, especially for winter sports or long trips.

📈 Does Using a Travel Card Improve Your Credit Score?

Using any credit card responsibly — including travel cards — can positively impact your UK credit score over time. To improve your credit:

• Stay within your limit

• Make payments on time

• Don’t apply for too many cards at once

• Use less than 30% of your available credit

Check your score for free with ClearScore or Experian UK.

💡 Final Verdict: Are Travel Credit Cards Worth It?

Yes — if you travel regularly and pay your balance in full each month, a travel credit card can:

• Eliminate foreign fees

• Earn free flights, hotels, and upgrades

• Add valuable perks like insurance or lounge access

For UK residents, cards like Halifax Clarity, Barclaycard Rewards, or British Airways Amex offer tremendous benefits depending on how and where you travel.

Just be sure to compare annual fees, acceptance abroad, and reward structures before choosing.

✅ Quick Recap: Best Travel Credit Cards UK (2025)