(Guest Post by Mike Brains)
If you are holidaying in Malaysia, you should be aware that using your cards there may not be the same as using a UK credit card. However, following a few simple tips will help ensure that you don’t run into any problems.
First, make sure you look at other credit cards before you travel. You may be able to transfer to a low APR credit card, or negotiate a reduction in interest and fees with your current provider. This will help you save money while you are abroad.
Once you have done this, you should contact your credit card company and tell them you will be travelling to Malaysia and may use your credit card. While most companies won’t see anything wrong with using a credit card in the UK, transactions abroad can be flagged as suspicious.
This may result in your card being cancelled, but don’t be alarmed.
Credit card fraud isn’t a major problem in Malaysia compared to other South East Asian countries, but there is a lot you can do to reduce the chances of becoming a victim. You should keep all your receipts, so you can check transactions with your bank. Also, charge any food and drinks to your hotel room and pay when you check out, rather than using your card for each meal.
You should also avoid withdrawing cash with your credit card. This is not because of any fraud risk, but because of the charges attached to it. Even if you have a low APR credit card, you will have to pay additional interest of cash withdrawals. You will also have to pay ATM charges and a foreign exchange fee.
If you do have to withdraw cash using your credit card, ensure that you cover your PIN when entering it, and don’t take out large sums of money at once. This can make you a target of opportunistic beggars and thieves.
Of course, this tip is equally valid when taking cash out with a credit card in the UK.
Finally, even if you have a very low APR credit card, it makes sense to pay off holiday expenses as quickly as possible. This will help you reduce the amount paid in interest.
Editor’s Note: This is a guest post.
Author: Mike Brains is a Manchester University graduate specialising in online journalism. His articles on finance concentrate particularly on comparing credit cards deals, money management and saving for the future. They can regularly be found across a number of high profile blogs and financial websites.
very good point about withdrawing cash with your card. those charges can be exorbitant.
Good advice. Thanks!