Finally, the much-awaited trip is here! Have you been planning for your annual trip with your family and the time is near? Well, before you hop on the plane, there are a few things you need to note. We all know how our credit rating scores are crucial towards our future, right? Always be on the lookout to avoid having instances where your credit score will go down due to issues like missed credit card payment or loan repayment.
Before you travel, always ensure that your credit is in order. The mental satisfaction that you have financially planned for the trip leads to you enjoying 100% of it. The question is, how do you ensure your credit rating is okay?
1. Carry More than One Credit Card
Always have a backup plan when traveling because a lot of unforeseen events occur. Have more than one credit card just in case one is stolen. It’s quite devastating when you have traveled, and you realize you don’t have your credit card. Such an occurrence may push you towards getting sites that offer quick cash instantly. The disadvantage here is that they charge insanely high-interest rates which you may end up having difficulty paying up. This could find its way to the credit bureaus which in turn leads to a poor credit score. Ensure you have a backup credit card that can rescue you during emergencies.
2. Alert Your Financial Institution of your Travel Plans
Before you travel, especially overseas, ensure that you notify your bank. Banks are very keen on transactions made. Therefore, if they see a transaction that you make in Italy, they may mark it as fraudulent. Once they do that, they may cancel your credit card immediately.
Communication is essential towards a smooth journey. Some banks may have an online platform where you can alert them while others require you to call their customer care representative. Others may need you to go to the bank physically for confirmation as a security measure to avoid any ugly incidences.
3. Pay any Outstanding Balance
How long do you plan to stay out on vacation? If you are staying for over a month, it’s advisable that you make a list of all outstanding debts that you need to make for that month. Pay upfront before you travel to avoid any of your creditors alerting the credit bureaus that you have not paid them. Failure to pay leads to an automatic reduction in your credit rating which is detrimental to you.
A poor credit score will limit you to what types of loans you can apply. Sometimes, you may not even be in a capacity to borrow because of the strict rules of financial institutions. In most cases, they will ask for your credit report to ascertain that you can pay upon approval.
4. Confirm Your Health Insurance
Medicare does not cover any healthcare overseas. Therefore, ensure that you have an insurance cover that covers such instances. Seek clarification before you travel from your insurance company so that you can plan prior.
What would happen if you felt sick all of a sudden and needed immediate medical attention overseas? Coincidentally, you assumed that your insurance coverage would cover for foreign medical costs only to find out they don’t? You end up having a medical bill that you may have difficulty paying. Such instances eventually end up hurting your credit score hence the importance to find out before you travel out.
5. Know What Types of Cards are Acceptable
One thing you should be aware is that not all credit cards are accepted in all countries. Therefore, ensure that you do a background search on the area you are going to visit and see a list of credit cards that are accepted.
In most cases, the MasterCard and Visa are widely accepted, unlike the Master Express cards which are not a guarantee that they will be accepted. After finding out, you may not have the specified cards, and you may have to get them to facilitate your journey. However, some banks have online platforms where you can perform almost any transaction through them.
Note that; know how much foreign transaction fees you are charged on the particular card you use. Some may have high costs that may end up piling up and become too costly throughout the journey considering the number of purchases you make with them. Adequate information helps your credit score stay intact as you already have a plan on how to go about the whole experience.
Lastly, ensure that you obtain a credit report so that you know where you stand. This will help you to seek clarity on information that is in the report that is inaccurate. This will assist you before traveling so that the bureau can rectify to help modify your credit score. On how you can get your credit score, click here.
Image by Christine Roy via Unsplash.