Planning a holiday or spending time abroad? Using the wrong credit card overseas can cost you hundreds of pounds in unnecessary fees. Most UK credit cards charge a foreign transaction fee of around 2.75% to 2.99% on every purchase you make outside the UK — and that adds up fast.
A dedicated travel credit card eliminates these fees entirely, giving you the Mastercard or Visa exchange rate with nothing added on top. You also benefit from Section 75 consumer protection on purchases between £100 and £30,000, which can be a lifeline if something goes wrong with a booking or purchase abroad.
We have reviewed and compared the best travel credit cards available in the UK right now, looking at foreign transaction fees, ATM withdrawal charges, cashback rates, annual fees, and additional perks. Here are our top picks for 2026.
Best Travel Credit Cards UK 2026 — At a Glance
| Card | Foreign Transaction Fee | Annual Fee | Cashback / Rewards | Best For |
|---|---|---|---|---|
| Halifax Clarity | 0% | £0 | £20 welcome cashback | Fee-free spending abroad |
| Barclaycard Rewards | 0% | £0 | 0.25% cashback on purchases | Cashback plus travel |
| Lloyds Ultra | 0% | £0 | 1% year one, 0.25% after | Best all-rounder |
| Chase Credit Card | 0% | £0 | 0% interest for up to 15 months | Interest-free overseas purchases |
| Amex Preferred Rewards Gold | 3.3% | Free year 1, then £195/yr | 40,000 welcome points, lounge access | Travel rewards and perks |
Rates correct as of 24 March 2026. Always check the provider’s website for the latest rates.
1. Halifax Clarity — Best for Fee-Free Spending Abroad
The Halifax Clarity has long been considered the gold standard for travel credit cards in the UK, and it continues to earn that reputation in 2026. It charges absolutely no foreign transaction fees on purchases or ATM withdrawals abroad, making it one of the cheapest ways to spend overseas.
When you use the Halifax Clarity abroad, you pay the Mastercard exchange rate with nothing added on top. This is typically one of the best exchange rates available anywhere, and significantly cheaper than exchanging cash at the airport or using a standard credit card with a 2.99% loading fee.
Key Features
- Foreign transaction fee: 0% on purchases and ATM withdrawals
- Annual fee: £0
- Representative APR: 22.9% variable
- Welcome offer: £20 cashback when you first use your card
- ATM withdrawals abroad: Fee-free (up to £500 per day)
- Network: Mastercard
Things to Watch Out For
While the Halifax Clarity is excellent for spending abroad, there is one important catch. Cash withdrawals — whether in the UK or overseas — begin accruing interest from the day of the withdrawal. There is no interest-free period on cash, unlike with standard purchases. So while the withdrawal itself is fee-free, you will want to pay off any cash advances as quickly as possible to minimise interest charges.
The card does not offer ongoing cashback or rewards on purchases, so if you want to earn while you spend, you may want to consider the Lloyds Ultra or Barclaycard Rewards instead.
Who Is It Best For?
The Halifax Clarity is ideal for anyone who travels regularly and wants the simplest, cheapest way to pay abroad. If you mainly want a card to take on holiday without worrying about hidden fees, this is the one to get.
2. Barclaycard Rewards — Best for Cashback Plus Travel
The Barclaycard Rewards Visa is a strong dual-purpose card that works well both at home and overseas. It charges no foreign transaction fees on purchases or cash withdrawals abroad, and pays 0.25% cashback on all eligible spending.
While 0.25% might not sound like a lot, the fact that you earn it on overseas spending as well as domestic purchases — combined with zero foreign fees — makes this a genuinely useful all-year-round card.
Key Features
- Foreign transaction fee: 0% on purchases and ATM withdrawals
- Annual fee: £0
- Representative APR: 28.9% variable
- Cashback: 0.25% on all eligible purchases
- ATM withdrawals abroad: Fee-free
- Network: Visa
Things to Watch Out For
Cashback is not earned on balance transfers, money transfers, cash withdrawals, or purchasing currency and travellers’ cheques. The representative APR of 28.9% is higher than some competitors, so this card works best if you pay off your balance in full each month.
Who Is It Best For?
The Barclaycard Rewards is ideal if you want a single credit card that earns cashback on everyday spending at home and costs you nothing extra when you take it abroad. It is a solid choice for occasional travellers who do not want to carry multiple cards.
3. Lloyds Ultra — Best All-Round Travel Credit Card
The Lloyds Ultra Credit Card is arguably the best all-round travel credit card on the market in 2026. It combines uncapped cashback, no foreign transaction fees, and fee-free ATM withdrawals at home and abroad — all with no annual fee.
In your first year, you earn 1% cashback on all purchases, including those made overseas. After that, the rate drops to 0.25%, which is still competitive. The cashback is uncapped, meaning there is no limit to how much you can earn.
Key Features
- Foreign transaction fee: 0% on purchases and ATM withdrawals
- Annual fee: £0
- Representative APR: 12.9% variable
- Cashback: 1% in year one, 0.25% thereafter (uncapped)
- ATM withdrawals: Fee-free in the UK and abroad
- Network: Visa
Things to Watch Out For
You will need to have a Lloyds Bank current account to be eligible for this card, which may be a dealbreaker if you bank elsewhere. The 1% cashback rate drops to 0.25% after the first year, which brings it in line with the Barclaycard Rewards.
Who Is It Best For?
If you already bank with Lloyds — or are willing to switch — the Ultra card is the best travel credit card for maximising value both at home and abroad. The 1% cashback in year one is particularly generous, and the low representative APR of 12.9% is the lowest on this list.
4. Chase Credit Card — Best for Interest-Free Overseas Purchases
Chase made waves when it entered the UK banking market, and its credit card offering continues that trend. The Chase Credit Card charges no foreign exchange fees and offers up to 15 months at 0% interest on purchases — a combination that is hard to find elsewhere.
This makes it particularly useful if you have a big holiday or overseas purchase planned and want to spread the cost without paying interest or foreign transaction fees. It is managed entirely through the Chase app, which provides real-time spending alerts and card controls.
Key Features
- Foreign transaction fee: 0%
- Annual fee: £0
- Representative APR: 24.9% variable (after promotional period)
- Introductory offer: 0% interest on purchases for up to 15 months
- Card design: Numberless (details in app)
- Eligibility: Must be an existing Chase banking customer
Things to Watch Out For
The card is only available to existing Chase current account holders, so you will need to open a Chase account first if you do not already have one. The card does not currently offer cashback rewards. After the 0% promotional period ends, the standard APR of 24.9% applies.
Who Is It Best For?
The Chase Credit Card is perfect if you have a large overseas purchase or holiday planned and want to spread the cost interest-free while avoiding foreign transaction fees. It is also a good choice for security-conscious users who appreciate the numberless card design and app-based management.
5. American Express Preferred Rewards Gold — Best for Travel Rewards and Perks
If you travel frequently and want more than just fee savings, the American Express Preferred Rewards Gold card offers some of the most generous travel perks available to UK cardholders. It comes with a substantial sign-up bonus, airport lounge access, and hotel benefits that can easily offset the annual fee.
Unlike the other cards on this list, the Amex Gold does charge a foreign transaction fee of 3.3%. However, the rewards you earn on spending can far exceed this cost if you use the card strategically.
Key Features
- Foreign transaction fee: 3.3%
- Annual fee: Free in year one, then £195 per year
- Welcome bonus: 40,000 Membership Rewards points (worth up to 40,000 Avios)
- Airport lounges: 4 free Priority Pass lounge visits per year
- Hotel benefits: $100 hotel credit at 1,000+ premium hotels worldwide
- Additional perks: £120 annual Deliveroo credit (£10/month)
Things to Watch Out For
The 3.3% foreign transaction fee means this card is not the cheapest option for overseas spending. Many travellers use a fee-free card like the Halifax Clarity or Barclaycard Rewards for purchases abroad, and keep the Amex Gold for UK spending to maximise points. American Express is also not as widely accepted as Visa or Mastercard, particularly in smaller shops and restaurants overseas.
Who Is It Best For?
The Amex Gold is ideal for frequent travellers who value airport lounge access, hotel upgrades, and collecting Avios or other loyalty points. If you spend enough to earn significant rewards, the annual fee can pay for itself many times over. Pair it with a fee-free Mastercard or Visa for your actual overseas purchases.
How We Chose the Best Travel Credit Cards
We evaluated every major travel credit card available to UK consumers in March 2026, focusing on the factors that matter most to travellers.
Foreign Transaction Fees
This was our primary criterion. The best travel credit cards charge 0% on overseas purchases, saving you the 2.75%–2.99% fee that most standard cards apply. On a £2,000 holiday spend, that is a saving of up to £60.
ATM Withdrawal Fees
Many cards that waive foreign transaction fees still charge for cash withdrawals abroad. We prioritised cards that offer fee-free ATM access overseas, as cash is still essential in many destinations.
Annual Fees
Most of our top picks have no annual fee, making them cost-effective even if you only travel once or twice a year. Where an annual fee applies (as with the Amex Gold), we assessed whether the benefits justify the cost.
Cashback and Rewards
Some travel cards offer additional value through cashback or reward points. We factored in the earning potential both at home and abroad to identify the cards offering the best overall value.
Acceptance and Network
Visa and Mastercard are accepted almost everywhere globally. American Express has more limited acceptance, particularly outside major cities and tourist areas. We noted the card network for each recommendation.
Additional Benefits
We considered extras such as introductory 0% interest periods, Section 75 consumer protection, app-based controls, and travel insurance where applicable.
Frequently Asked Questions
What is a foreign transaction fee?
A foreign transaction fee is a charge applied by your card provider every time you make a purchase in a foreign currency. Most UK credit cards charge between 2.75% and 2.99% on top of the exchange rate. The best travel credit cards eliminate this fee entirely, so you pay only the Mastercard or Visa exchange rate with nothing added.
Is it better to use a credit card or debit card abroad?
A travel credit card is generally the better option. Credit cards offer Section 75 protection on purchases between £100 and £30,000, meaning your card provider is jointly liable if something goes wrong. Debit cards do not offer this protection. Additionally, many travel credit cards have no foreign transaction fees, while most debit cards still charge them — though specialist debit cards from banks like Starling and Monzo are fee-free abroad.
Should I pay in local currency or pounds when abroad?
Always choose to pay in the local currency. If you select pounds (GBP), the merchant or ATM operator sets the exchange rate — a practice known as Dynamic Currency Conversion (DCC). This almost always results in a worse rate than you would get from your card provider. By paying in the local currency, you benefit from the Mastercard or Visa exchange rate, which is typically much more competitive.
Do travel credit cards charge for ATM withdrawals abroad?
It depends on the card. The Halifax Clarity, Barclaycard Rewards, and Lloyds Ultra all offer fee-free ATM withdrawals overseas. However, be aware that interest on cash withdrawals usually starts accruing immediately — there is no interest-free period as there is with purchases. Pay off any cash advances as quickly as possible to minimise interest charges.
Can I use a travel credit card as my everyday card?
Yes, and many people do. Cards like the Lloyds Ultra and Barclaycard Rewards earn cashback on all purchases, making them useful for day-to-day spending in the UK as well as abroad. The Halifax Clarity does not earn cashback on domestic spending, so it is more suited as a dedicated travel card.
How long does it take to get a travel credit card?
Most providers can approve your application within minutes and send your card within 5 to 10 working days. If you are planning to use the card on an upcoming trip, apply at least two to three weeks before your departure date to allow time for delivery and activation.
Will applying for a travel credit card affect my credit score?
Yes, applying for any credit card will leave a hard search on your credit file, which can temporarily lower your credit score by a few points. However, this impact is usually small and short-lived. Avoid making multiple credit card applications in a short period, as this can have a more significant effect. Many providers offer eligibility checkers that perform a soft search first, letting you see your chances of approval without affecting your score.
The Bottom Line
Choosing the right travel credit card can save you hundreds of pounds each year in unnecessary foreign transaction fees. For most UK travellers, the Halifax Clarity remains the simplest and most reliable choice — zero fees on spending and ATM withdrawals abroad, with no annual fee to worry about.
If you want to earn cashback on your spending both at home and overseas, the Lloyds Ultra is the strongest all-round option, particularly in its first year when you earn 1% on every purchase. And if you are a frequent flyer who values airport lounges and travel perks, the Amex Preferred Rewards Gold offers outstanding rewards that can easily justify its annual fee.
Whichever card you choose, the most important thing is to avoid the typical 2.99% foreign transaction fee that most standard credit cards charge. On a £3,000 holiday spend, that is nearly £90 saved — more than enough to treat yourself to a nice dinner abroad.
Disclaimer: Rates and features correct as of 24 March 2026. Always check the provider’s website for the latest rates and terms. SmartMoneyHQ does not provide financial advice. Credit cards are subject to application and credit checks. Your home may be at risk if you do not keep up repayments on a mortgage or other loan secured on it. FSCS protection applies to eligible deposits, not credit card balances.
Get the Best UK Money Deals — Free
Join our newsletter for weekly savings tips, rate alerts and ISA deadline reminders.
