Credit help service

It is estimated that approximately £22bn will be spent during this holiday season, most of that in restaurants and shops abroad.

As the average foreign currency transaction fee is in the region of 3%, British banks and credit card companies are over the moon at the thought of all those foreign transactions being made by their customers holidaying abroad.

Finding the right credit card to use on your travels

Are you aware that there are some credit cards that can be used freely abroad and which will leave you pleasantly surprised when that bill arrives after you get home?

If you compare credit cards by those that are best for use abroad, this will give you the maximum value for your Euros or any other foreign currency.

We have done some comparisons on credit cards particularly for use abroad and our research has revealed that the good old Post Office comes up trumps for value.

Cashier number two, please!

The jewel in the crown of the Post Office offerings is the Post Office Platinum credit card, followed closely by the Post Office Classic credit card, and either should be as vital a part of your holiday luggage as your passport, or heaven forbid that you should need it, the Imodium!

Neither the Platinum nor Classic credit cards charge a foreign transaction fee at all.

This means they can be used readily in just about every outlet abroad, whether at hotels, restaurants, shops or for car hire. What’s more, you won’t have to pay a percentage of your purchase to the card company or even a flat fee, which is the case with some other travel credit cards.

But there is an important word of warning: you should never use these cards for any sort of cash advance, such as withdrawing cash from an ATM or buying local currency once you are abroad. The interest rate is a rather frightening 19.16% together with a 2% flat fee.

Everything you buy on the Post Office cards is totally interest free for a generous 56 day period, more than long enough to leave until you return home from your holiday. After that, the interest rate leaps to 15.9% for the Platinum card or 16.9% for the Classic.

Don’t let them charge you in Sterling

Here is a very important tip - make sure that you are charged in the local currency when you swipe your credit card. Dig your heels in and insist on it if necessary or you will end up paying for this little ruse by retailers.

It may sound easier to pay in Sterling rather than the local currency because you can work out at a glance what you are spending, but in the long run you will just be feeding the retailer’s pocket for that delicious, mouth watering paella or pizza because of the lucrative currency conversion rates.