Is it better to use credit cards or travelers checks when traveling?
A. It depends. You may not be able to use credit cards in some developing countries. Some banks have begun adding one or two percent surcharges to overseas credit card transactions. However, traveler s checks also charge a one percent surcharge and you may have to pay one to two percent to convert them back to cash. Only credit cards offer purchase protection. The only time a credit card is a bad idea is for cash advances, which can carry fees as high as three percent and start accruing interest the second you get the money, making them a costly option. If you decide to use credit cards, carry an extra card in case an ATM doesn t return your card.
