Which credit card should travellers use? These have the best perks

Credit and debit cards make for smooth travelling, but the card that will work best for you overseas is probably not the one you use every day at home. It also depends on your needs. Do you want it to pay for general expenses, for low-fee ATM withdrawals or to generate maximum points per dollar? There is no single card that does everything.

No one credit card does everything you might want it to.Credit: iStock

For complimentary travel insurance

The Bendigo Bank Platinum Rewards Credit Card comes with up to 90 consecutive days international travel insurance for persons under 76 years. To qualify, the card must be used to pay for at least $500 on travel costs before leaving Australia.

A spouse and dependants are also covered provided they are travelling with the primary cardholder for at least half the journey, an additional $500 per person of travel costs have been paid for on the card, and their return tickets were purchased before the commencement of the journey. However, the policy does not cover the excess on a hired motor vehicle, which is a common exclusion with complimentary credit card travel insurance. The annual fee is a modest $89 and every dollar spent with the card on eligible purchases earns 1.5 Bendigo Bank Rewards points.

The American Express Green Card also comes with travel insurance. The annual card fee is $80. Sign up for Amex’s Membership Rewards program and you can earn points at the rate of 1.5 points per $1 spent on all purchases and one point per $1 spent with government bodies in Australia.

Fast-track to airline gold status

Gold status with Star Alliance comes with several perks that are valuable for frequent travellers such as priority check-in and boarding and free access to business lounges, and the HSBC Star Alliance credit card can get you there quickly.

To qualify, you need to spend $4000 on eligible purchases within 90 days of opening your account. Regardless of which airline you choose for your gold status – and the list includes Singapore Airlines, United Airlines and Air New Zealand – you’ll have access to more than 1000 Star Alliance airport lounges around the globe. Cardholders earn one Star Alliance Point per $1 spent on eligible purchases, up to $3000 per statement period, with 0.5 points per $1 thereafter.

Those points can be credited to award miles or points in the frequent flyer program of your chosen Star Alliance airline. Cardholders may also qualify for complimentary travel insurance which covers rental vehicle excess, but only in Australia. However, the bar to maintain gold status with the card is set high, with a minimum annual spend of $60,000 on eligible purchases.

Frequent flyer? Some cards can earn you airline status, with a host of perks like lounge access.Credit: Qantas

For ATM withdrawals overseas

I use the Wise debit card, and I’ve never had a problem withdrawing cash from foreign ATMs. Some have, however, experiencing “invalid user” responses at ATMs despite ample funds in their account and being able to use their card for tap to pay transactions.

Wise gives you two free ATM withdrawals per calendar month. After your second withdrawal you’re charged a fixed fee per withdrawal, regardless of the amount. Cardholders have a free withdrawal allowance per calendar month. Once that free limit is reached, each successive withdrawal in that month attracts a variable fee, depending on where the card is issued.

You can load the Wise card with more than 40 currencies. If you leave it in Australian dollars, any withdrawal is converted to local currency at the interbank or mid-market rate, which is the rate banks use when they trade among themselves. Widely accepted in hotels, restaurants, cafes and shops, the Wise Visa card is also a great choice for paying bills when overseas.

For acquiring points

The ANZ Rewards Black credit card earns two ANZ Reward Points per dollar spent on eligible purchases, up to $5000 per statement period. New members receive a massive 180,000 ANZ Rewards bonus points when they spend $3000 on eligible purchases on the card within the first three months of membership.

It’s also a decent earner, delivering two ANZ Reward Points for every $1 spent per statement period on eligible purchases, up to $5000. Subject to a minimum spend, the card also comes with complimentary travel insurance, with cover for rental vehicle excess in Australia. The annual fee is $375.

Another card worth considering in this category, the American Express Explorer Credit Card comes with two points per dollar spent on purchases, and one point per dollar spent on purchases at government bodies in Australia.

New Amex card members receive 50,000 bonus points when they spend $4000 on eligible purchases using the card within the first three months of membership. From time to time, Amex membership drives boost this figure to 100,000 points, The annual fee is $395, but that’s offset by an annual $400 credit to spend on eligible domestic and international flights, hotels or car hire booked through American Express Travel.

For building Qantas points

The Qantas American Express Ultimate Card earns 2.25 Qantas points per dollar spent on eligible Qantas products and services and 1.25 Qantas points on everyday purchases per dollar, except for spending at government bodies in Australia, in which case the rate is 0.5 Qantas points. There’s also a handy sign-up bonus of 60,000 Qantas points.

The annual fee is $450 and that’s offset by a $450 Annual Qantas Travel Credit to spend on eligible domestic or international Qantas flights each year when booked through American Express Travel. This is a co-branded card and they’re the best bet for acquiring points with a particular airline since they acquire airline points rather than rewards points, which convert at the rate of two or more points for one airline point.

Another big earner, the American Express Qantas Business Rewards Card comes with two Qantas points per dollar spent on Qantas products and services, 1.25 Qantas points on everyday business spend and 0.5 Qantas Points on government, utilities and insurance per dollar. There’s also a sign-up bonus of 130,000 Qantas points, provided you apply before January 14, 2025. The annual fee is $450.