International Credit Cards - Features & Benefits | Kotak Bank

04 OCTOBER, 2021

Are you traveling abroad with your loved ones? If so, getting an international credit card may be the best option to manage your money on your travels overseas. International credit cards are the most convenient, widely accepted, and can be handy in emergencies. It allows you to make international bookings and payments at merchant outlets, stores, airlines, hotels, restaurants, and petrol pumps. 

The best part is that you can use your credit card to access liquid cash, and it comes with a host of benefits, such as reward points, cashback, and bonuses on every spend you make abroad. You can apply for a credit card online and avail of numerous features and benefits on your travel abroad: 

Here are the key features and benefits of an international credit card:

Seamless foreign transactions

Whether you need to complete a transaction on a merchant outlet’s PoS machine or pay online, paying through an international credit card is the best way to process foreign transactions. So, if you have an international credit card and you face any issues while transacting abroad, you can immediately contact your issuing bank to resolve it. 

However, it is worth noting that transacting with your international credit card comes with a nominal foreign transaction fee. Unlike a standard credit card, an overseas credit card has lower charges, and it can save you a significant amount of money.

Easy cash withdrawal

If you are traveling to offbeat locations where access to PoS devices is limited, you will need to pay in cash. In such cases, you will need to find a visa-enabled ATM to withdraw cash from your credit card account. But, keep in mind that you will have to incur charges, such as foreign exchange rates, markup charges, cash advance, and processing fees. When you apply for a credit card, make sure to know these charges associated with it and then make a decision that best serves your needs. 

Avail of maximum reward points while being abroad

An international credit card comes with attractive reward points. Although you will have to incur foreign transaction charges while swiping PoS terminals, you can reduce your spending limit while redeeming your reward points.  For instance, Zen Signature offers Rs. 15000 bonus zen points for spending over Rs. 6 lakhs per year. Besides that, you have three Complimentary Priority Pass International Lounge Access in a year. 

Avail of discounts at luxurious hotels 

Another benefit of having an international credit card is that it is not limited to mere overseas payment convenience, but you can avail of attractive deals on international stays as well. For instance, Delight Platinum Credit Card offers 10% cash back on dining and other entertainment activities in a monthly billing cycle. 

So, when you apply for a credit card, make sure that it comes with attractive benefits, such as cashback on international stays, dining, and entertainment. To get an international credit card, it is imperative to maintain an excellent credit score and a stable income. 

You can get complimentary airport lounge access

An international credit card not only takes care of your transactions and stays abroad, but it also looks after your travel to and fro. For instance, you can avail of discounts or reward points on your air tickets. You can also have complimentary airport lounge access. For example, with a Mojo Platinum Card, you can get up to eight complimentary airport lounge visits every year (both international and domestic terminals). It is the best credit card to take care of your comfort while you travel in style.  

Interest-free period

If you have a good credit score, you will get a credit card that comes with an interest-free period. It is a period within which you do not need to pay interest on your outstanding bills. This period generally ranges between 45 to 60 days. During the interest-free period, you have the luxury of paying your entire outstanding balance without incurring any interest. So, while applying for an international credit card, make sure it comes with an interest-free period. 

Purchase protection

The best part about an international credit card is you have insurance for purchases that are lost, damaged, or stolen. For instance, most issuing banks offer purchase protection for damaged or lost goods within 180 days from the date of purchase. You will have to use your credit card statement to vouch for your loss. Upon a brief review, you will get a refund of the purchase amount.

Things to consider before getting an international credit card 

Before applying for an international credit card, there are certain requirements that you have to meet. Unlike a standard credit card, you will have to maintain a stable and recurring income. You will need to convince your issuing bank that you can pay your credit card bills on time and in full. 

  • Income

Before applying for a credit card, your bank will ask for your income information to determine your repayment capacity. Your income is proof to the issuer that you will be able to make repayments on time. Your credit card benefits increase with an increase in your income bracket.  

  • Credit score

Your credit score is a crucial factor in getting an international credit card. A lower credit score could jeopardize your plan of traveling abroad with an international credit card in hand. Most credit cards that offer reward points or miles require an excellent credit score. The minimum credit score requirement is 750.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.