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If used wisely, credit cards can be very useful in terms of withdrawing money from cash points or ATM machines to paying for goods and services in shops and restaurants when travelling.
Interest rates from the various credit card companies, banks and building societies can vary enormously with many now offering interest free periods on new accounts. Always check the small print for conditions and limits.
Two of the biggest companies in this area are Visa and Mastercard and both are used widely around the world in millions of shops, hotels, restaurants and other businesses. Logos for Visa and Mastercard can be seen below.
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As with most things, it's a good idea to shop around to find the best credit card deal in terms of monthly interest rate, charges for withdrawing cash at home and abroad, interest free period and any other benefits such as insurance cover for new purchases and travel.
To avoid financial penalties for late payments on credit cards while travelling, arrangements can be made with relations or close friends to pay the bills while you are abroad. Alternatively, a payment can be set up using an online banking account which will allow you to make payments from your current account to your credit card from any internet cafe when travelling. As long as account details are kept private, online banking is relatively secure and safe these days. Another alternative is telephone banking where credit card payments can be made over the phone. Most banks offer both online and telephone banking services.
As always it is best to research countries before travelling to find out which credit and debit cards are widely used. Some countries can spring up major surprises such as Japan. Most people would assume that an ultra modern country like Japan would be at the forefront of credit card use but in reality, cash rules and the vast majority of ATM machines only accept Japanese credit cards. Fortunately nearly all Post Offices have international ATMs.
Finally, booking flights and accommodation by credit card is also advisable as this offers extra protection if problems arise.
