If you’ve moved abroad (or plan to), you’ve likely discovered that no other country offers credit card points as lucratively as the United States.
But there’s no need to resign yourself to paying cash for your travels or never seeing another six-figure bonus offer. With a few specific strategies, you can keep earning big welcome bonuses as well as points and miles for everyday expenses, regardless of where you currently call home.
Here’s what you need to know to apply and earn no matter where you are.
Related: My 4 top travel credit cards — and how they elevate my trips
What to know about applying for and using a credit card as an expat
Choose cards with no foreign transaction fees
If most of your purchases are made in a currency other than U.S. dollars, you’ll want to ensure you’re not charged a fee each time you use a card in a foreign currency. Fortunately, the vast majority of top rewards credit cards do not charge foreign transaction fees.
Consider local acceptance
While the coronavirus pandemic rapidly accelerated card acceptance and usage worldwide — to the point that some retailers in Europe, for example, no longer accept cash — don’t expect every destination to accept every card. While American Express acceptance is high in countries like Canada, Australia, the United Kingdom, India and Singapore, many countries do not commonly accept Amex. It’s a good idea to have a high-earning, benefits-packed Amex card as well as a Visa or Mastercard in your wallet to cover any acceptance issues.
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Use a US address
U.S. credit cards require a physical U.S. residential address to apply for and receive your card. You can use a friend’s or relative’s address — since this person will be receiving a credit card in your name, it must be someone you trust implicitly. Digital mail-forwarding addresses will generally not work, as banks now have sophisticated address-checking systems that weed out commercial listings. You may need to verify your address, so it’s a good idea to have a utility bill or bank statement showing that postal address available.
Use a US phone number
Many card issuers send you text messages for identification purposes, whether for an unusual purchase abroad or when contacting them for customer service, and you’ll need a U.S. phone number to receive them. You can use a service like Google Fi or magicApp to ensure you have a U.S. phone number when an issuer asks for it and can receive security text messages. Don’t skimp on this, as some issuers’ verification messages won’t come through inexpensive Voice over Internet Protocol, or VoIP, setups, and you won’t be able to verify your identity or certain purchases.
Protect your credit score
Just because you are living abroad doesn’t mean you should forget about your U.S. credit score. Use monitoring services to note any large and unexpected changes to your score, which could suggest a reporting error that needs to be corrected. It’s also a good idea to keep your oldest cards open, even if this means downgrading to a free card to avoid paying an annual fee for a card you may no longer use, to protect your credit history length, a key factor in the makeup of your credit score.
Related: What is a good credit score?
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Use contactless payments
Abroad, you’re more likely to run into scenarios where you need a chip and PIN when using your credit card. To avoid this, use contactless payment with tap-to-pay or a mobile wallet like Apple Pay or Google Pay. Some issuers, like Chase, allow you to activate your credit card immediately upon approval and add it to mobile wallets, so you don’t need to wait for a physical card to arrive in the mail. Contactless payment can also help you meet a spending requirement and earn the welcome bonus on a new card without receiving the physical card.
Go paperless
Make sure you’re enrolled in paperless communications with all your credit cards. This allows you to access information such as approvals and statements more quickly and prevents your sensitive information from being shared with others.
Ensure you have the correct bank account
If you are working abroad, you may be earning wages in a currency other than U.S. dollars. However, your credit card bill will need to be paid in U.S. dollars, so make sure you have both a U.S. bank account from which the bill can be paid, and the correct foreign exchange process set up to ensure there is enough money in your U.S. bank account to pay the bill in full each cycle to avoid any late fees, penalty interest or negative impacts on your credit score. Use a banking app like Wise or PayPal to transfer your money to a U.S. account to pay your credit card bills, minimizing transfer fees.
Related: Here’s how fast each bank issues points and miles to your account
Best credit cards for expats
There are plenty of fantastic credit cards that let you earn valuable rewards and enjoy great travel benefits and protections abroad. Here are some of our favorites:
Best expat credit card for travel and purchase protections: Chase Sapphire Reserve® (see rates and fees)
Earn a welcome bonus of 125,000 bonus points after you spend $6,000 on purchases in the first three months from account opening. This card has an annual fee of $795.
This card offers:
Delayed and lost luggage reimbursement
Primary rental car insurance
Trip cancellation and interruption insurance
Trip delay reimbursement
For more details, check out our full review of the Chase Sapphire Reserve.
Best expat credit card for worldwide acceptance: Capital One Venture X Rewards Credit Card
Earn 75,000 bonus miles after spending $4,000 on purchases in the first three months from account opening. This card also has the following generous earning rates:
10 miles per dollar spent on hotels and rental cars booked through Capital One Travel
5 miles per dollar spent on flights and vacation rentals booked through Capital One Travel
2 miles per dollar spent on every purchase, every day
On top of the great welcome offer and earning rates, the card is also a Visa card, which is accepted in over 200 countries and territories worldwide. The card has an annual fee of $395.
For more details, check out our full review of the Venture X.
ALEXANDER SPATARI/GETTY IMAGES
Best expat credit card for earning points abroad: Atmos™ Rewards Summit Visa Infinite® credit card
This card has a welcome offer of 100,000 bonus Alaska Airlines Atmos Rewards points and a 25,000-point Global Companion Award after you spend $6,500 on purchases within the first 90 days from account opening. Plus, receive a 50% flight discount code for a qualifying future flight after opening your new account.
The card has an annual fee of $395.
Why is an airline cobranded card the best for earning points abroad when you might not be flying on Alaska? Because this card earns:
3 points per dollar spent on eligible dining, purchases made outside the U.S., and Alaska Airlines and Hawaiian Airlines purchases
1 point per dollar spent on all other purchases
That’s not just foreign dining purchases or foreign spending with select airlines — it’s 3 points per dollar on every purchase, regardless of category, made in a foreign currency (or dollars if the transaction is made or processed outside the U.S.). We can’t think of any other card that earns this many points for every purchase abroad, making it the ideal card to use as an expat, and Atmos Rewards points are some of the most valuable airline rewards you can collect.
To learn more, read our full review of the Atmos Rewards Summit Visa.
Best expat card for worldwide lounge access: American Express Platinum Card®
New Amex Platinum applicants can find out their offer and may be eligible for as high as 175,000 bonus points after spending $12,000 on purchases in the first six months of card membership. Welcome offers vary, and you may not be eligible for an offer.
For an $895 annual fee (see rates and fees), eligible cardmembers receive entry to the American Express Global Lounge Collection, including Centurion Lounges, Delta Sky Clubs (when traveling on same-day Delta flights, except for basic economy tickets; up to 10 visits per calendar year) and Priority Pass Select lounges (excluding restaurants).
There are also comprehensive travel and shopping protections when using your card.
Enrollment is required for select benefits.
For more details, check out our full review of the Amex Platinum.
Andaz Mexico City Condesa. HYATT
Bottom line
Living abroad doesn’t have to mean parting with your credit cards.
With the right cards in your (mobile) wallet and a solid strategy, you’ll keep earning points and miles to fuel your travels near and far. Be sure to keep a connection to the U.S. with a physical address and phone number.
Related: The best premium credit cards: A side-by-side comparison
For rates and fees of the Amex Platinum, click here.
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
