As opposed to what some may think, credit cards with no foreign transaction fees are great not just for those who travel outside of the United States frequently. With the rise of online shopping and the ease of shopping for literally everything on the internet, using a rewards credit card that lets you earn rewards on your expenses is a smart way to rack up rewards on your online purchases.
That said, if your go-to online stores happen to be those that are based outside of the United States, a rewards credit card that comes with no foreign transaction fees will go a long way in helping you avoid paying extra fees. These extra fees can easily add up and eat into your budget - a total waste of money if you ask us!
Most credit card companies charge an extra fee - usually around 3-5% of your purchase amount converted to US dollars - when you use your credit card to make payments in a different currency other than US dollars. This applies regardless if you are overseas or if you shop from international stores online in the comfort of your own home.
For example, if a credit card charges a foreign transaction fee amounting to 3% of each transaction after conversion to US dollars, spending $5,000 in a foreign currency or a couple of different foreign currencies would have incurred a whopping $150 in foreign transaction fees alone. This is not great especially if you tend to make purchases internationally in foreign currencies.
And that, is precisely why credit cards with no foreign transaction fees can be incredibly valuable even if you aren't one who travels internationally on the regular. If you are worried about the cost of using such credit cards, take heart there are no annual fee credit cards on the market that offer this amazing money-saving benefit. There are, of course, also good rewards credit cards with annual fees that come with this perk. Some have higher annual fees while others are very reasonable.