How Much Is a Credit Card for Expats?

Moving abroad is an exciting adventure, but it comes with its fair share of financial challenges. One of the most common questions expats ask is: How much does a credit card cost for someone living overseas? The answer isn’t straightforward—it depends on factors like your destination, credit history, and the type of card you choose.

The Cost Factors of a Credit Card for Expats

1. Annual Fees

Many premium credit cards charge annual fees, ranging from $50 to over $700. Expats often opt for travel-focused cards that offer perks like airport lounge access, travel insurance, and no foreign transaction fees—but these benefits come at a price.

• Basic cards: $0–$99/year
• Mid-tier travel cards: $100–$300/year
• Premium cards (e.g., Amex Platinum, Chase Sapphire Reserve): $400+/year

2. Foreign Transaction Fees

If your card isn’t designed for international use, you could pay 1%–3% extra on every overseas purchase. Some banks waive these fees for expat-friendly cards, so always check before applying.

3. Currency Conversion Costs

Dynamic currency conversion (DCC) is a sneaky fee where merchants charge you in your home currency instead of the local one—often at a terrible exchange rate. Always decline DCC and pay in the local currency.

4. ATM Withdrawal Fees

Need cash abroad? Many credit cards charge a cash advance fee (3%–5% of the amount) plus high interest from day one. Some debit cards (like Revolut or Wise) are better for withdrawals.

5. Security Deposits (Secured Cards)

Expats with no local credit history may need a secured card, requiring a refundable deposit (usually $200–$500). This acts as your credit limit while you build credit.

Best Credit Cards for Expats in 2024

1. Travel Rewards Cards

• Chase Sapphire Preferred® ($95/year) – No foreign transaction fees, strong travel rewards.
• Capital One Venture Rewards ($95/year) – Flat-rate miles and global acceptance.

2. No-Fee Cards

• Discover it® Miles – Rare for offering no annual fee and no foreign transaction fees (but limited acceptance outside the U.S.).
• HSBC Premier World Elite Mastercard® (varies by country) – Global banking perks for expats.

3. Local Country Cards

In some places (like the UAE or Singapore), local banks offer expat-friendly cards with low fees and regional benefits. Research before committing.

Hidden Costs Expats Should Watch For

1. Minimum Balance Requirements

Some international banks require high minimum balances ($10,000+) to waive fees. Failing to maintain this could cost you $20–$50/month.

2. Inactivity Fees

If you don’t use your card for several months, a bank might charge you—another reason to pick a card you’ll actually use.

3. Credit Score Impact

Closing old accounts before moving can hurt your credit score. Consider keeping at least one card active for emergencies.

How to Reduce Credit Card Costs as an Expat

1. Negotiate with Your Bank

Banks sometimes waive fees for loyal customers. Call and ask—especially if you have multiple accounts with them.

2. Use Digital Banks

Neobanks like Revolut, N26, or Wise offer multi-currency accounts with low fees, making them ideal for expats.

3. Pay in Full Every Month

Avoid interest charges (often 15%–25% APR) by paying your balance in full. Set up autopay if possible.

Final Thoughts

The cost of a credit card for expats varies widely, but with the right research, you can avoid unnecessary fees and maximize benefits. Whether you choose a travel rewards card, a no-fee option, or a local bank’s offering, always read the fine print—because in the world of expat finance, the devil’s in the details.