Tips for Using Your American Credit Card While Living Abroad

What You Need to Know About Applying for and Using American Credit Cards

If you're living abroad or planning to do so, you may have noticed that no place offers credit card benefits quite like the United States. But don’t worry—you don’t have to pay cash for everything or miss out on great deals. With a few handy tips, you can still earn points and rewards on your everyday spending, no matter where you are.

Choose a Card with No Foreign Transaction Fees

If you frequently spend in currencies other than the US dollar, opt for a credit card that doesn’t charge foreign transaction fees. Fortunately, most top rewards credit cards waive this type of fee.

Consider Local Acceptance

During the COVID-19 pandemic, card acceptance became more widespread. However, not all places accept every type of card. For instance, while American Express is widely accepted in Canada, Australia, and Singapore, it may not be as popular in other countries. It’s best to carry both an Amex and a Visa or Mastercard to avoid any unnecessary hassles.

Use a US Address

American credit cards require you to have a residential address in the US to apply and receive your card. You can use a trusted friend’s address, but make sure it’s someone you completely trust, as they will receive the card in your name. Avoid using a mail forwarding address, as banks will check and reject invalid addresses.

Use a US Phone Number

Many card issuers send verification texts for transactions, so you’ll need a US phone number to receive these messages. Services like Google Fi or magicApp can provide you with a US number when needed.

Protect Your Credit Score

Even while living abroad, don’t forget to monitor your credit score. Utilize tracking services to spot any unexpected changes, which could indicate reporting errors that need fixing. Keep your old credit cards, even if you switch to a fee-free card, to maintain the length of your credit history—a crucial factor in determining your credit score.

Make Contactless Payments

Abroad, you may encounter many situations where you need to use a chip card with a PIN. To simplify things, use contactless payments through digital wallets like Apple Pay or Google Pay. Many issuers, such as Chase, allow you to activate your card immediately upon approval to add it to mobile wallets, so you won’t have to wait for the physical card to arrive.

Go Paperless

Ensure you’ve opted for paperless statements from all your credit cards. This provides quicker access to your information and protects sensitive data from being compromised.

Ensure Your Bank Account is Set Up Correctly

If you’re working abroad, your salary may be in a foreign currency. However, your credit card bills still need to be paid in US dollars. So, make sure you have a bank account in the US and a proper currency conversion process in place to ensure you have enough funds in your account to cover your bills each month, avoiding late fees or negative impacts on your credit score.

Best Credit Cards for Expats

There are numerous attractive credit cards that help you earn points and enjoy fantastic travel benefits. Here are some suggestions:

• Chase Sapphire Reserve®: Earn 125,000 points after spending $6,000 in the first three months. Annual fee: $795.
• Capital One Venture X Rewards Credit Card: Earn 75,000 bonus miles after spending $4,000 in the first three months. Annual fee: $395.
• Atmos™ Rewards Summit Visa Infinite®: Earn 100,000 Alaska Airlines bonus miles after spending $6,500 in the first 90 days. Annual fee: $395.

Overall, using American credit cards while living abroad can present a few challenges, but with thorough preparation, you can still enjoy many benefits from them.