7 Best credit cards in the UK: complete guide 2025

The right card can make everyday purchases more convenient and even unlock travel perks when flying back home or exploring other countries. For expats, it can also be a tool for managing cross-border payments and international spending. However, many UK credit cards add a foreign transaction fee of around 2–3% for spending abroad, and overseas cash withdrawals often come with extra charges. That’s why alternatives such as Wise can be a convenient option to use alongside a credit card, helping you to spend and manage money across multiple currencies without the added foreign transaction fees.

What makes a credit card “best” for expats?

The best credit card for an expat is one that works both in the UK and abroad, without adding unnecessary costs. When comparing cards, there are a few key features worth keeping in mind.

Key features to look for

• No foreign transaction fees: Many UK credit cards charge an extra 2–3% when you use them abroad. Cards with no foreign transaction fees can save money on everyday purchases while travelling or visiting your home country.
• Competitive exchange rates: Some providers add a markup to the exchange rate when converting currencies. A card that uses rates closer to the mid-market rate helps you get more for your money.
• Global acceptance: Look for cards on the Visa or Mastercard networks, which are widely accepted worldwide for payments and ATM withdrawals.
• Travel benefits and protections: Features like travel insurance, purchase protection, travel points and airport lounge access can make life abroad or frequent trips much easier.
• Reward programs: Cashback, points, or air miles that can be used in the UK and internationally are invaluable if you lead an international lifestyle. 
• Easy online management and support: Managing your account online or through an app is important when you’re abroad and always on the go. Check for 24/7 customer service and easy ways to block or replace your card if needed.

Understanding credit card fees for international spending

When using a UK credit card abroad, it’s important to be aware of the fees that you’re likely to encounter, which can add up over time:

• Foreign transaction fees: Most UK credit cards include a fee of around 2–3% for converting purchases into pounds. For example, £100 spent in Europe could cost you £103 or more in total.
• ATM withdrawal fees abroad: Withdrawing cash using a credit card typically incurs a separate cash fee on top of the conversion fee, plus interest may also start accruing immediately.
• Hidden costs in exchange rate markups: Beyond visible fees, many providers add a margin to the exchange rate, meaning you pay more than the mid-market rate for each transaction.
• Dynamic Currency Conversion (DCC) traps: Some merchants or ATMs offer the option to pay in pounds instead of the local currency. This usually comes with unfavourable exchange rates and extra charges, so always opt for the local currency.
• Annual fees vs. benefits: Some cards charge an annual fee but include benefits like travel insurance or purchase protection. For frequent travellers, the benefits may outweigh the cost, but it’s always good to compare carefully.

Top 7 best credit cards for expats in the the UK

1. Barclaycard Rewards Card

Key Features	Details
Annual Fee	None
Foreign Transaction Fee	None on purchases or withdrawals abroad
Perks	No fees on overseas spending or ATM withdrawals; cashback on new purchases; VISA’s competitive exchange rate; purchase protection over £100; free additional cardholder; entertainment perks with Barclaycard customer offers
Best for	Expats who want a no-fee card for everyday use at home and abroad, with cashback and no foreign transaction charges

Pros of Barclays	Cons of Barclays
– No annual fee – No foreign transaction fees worldwide Cashback on new purchases – Purchase protection on transactions over £100	– APR of 28.9% (variable) is relatively high if balance is carried – Cashback excludes cash-like transactions  – Personal income and credit history requirements are quite high – £20,000+ annual income – Limited premium perks compared to travel-focused cards

2. American Express Preferred Rewards Gold Credit Card

Key Features	Details
Annual Fee	£0 first year, then £195
Foreign Transaction Fee	2.99% on non-GBP purchases
Perks	Membership Rewards points, including on luxury retail purchases, up to 4 yearly airport lounge passes, £120 Deliveroo credit, travel insurance
Best for	Frequent travellers and expats who want a premium card that offers rewards for flights, hotels and retail purchases

Pros of American Express	Cons of American Express
– No fee in first year with generous 40,000 point welcome bonus – Rewards on all spending, with 3x points on travel for every £1 spent – Lots of benefits, including lounge passes and dining credits – Purchase protection and travel insurance included	– £195 annual fee from year two – 2.99% fee on foreign spending – Not as widely accepted as Visa or Mastercard – High £20,000 yearly income requirement

3. NatWest Travel Reward Credit Card

Key Features	Details
Annual Fee	None
Foreign Transaction Fee	None on purchases abroad
Perks	Earn 1% back on eligible travel spending, up to 15% at selected retail partners and 0.1% everywhere else; no foreign transaction fees
Best for	Anyone who travels or spends in foreign currencies regularly

Pros of Natwest	Cons of Nawest
– No foreign transaction fees – Rewards on travel and selected retail partners – No annual fee – Flexible reward redemption into cash, vouchers, or donations	– Low 0.1% cashback rate on everyday spending – No 0% purchase offer – Cash withdrawals abroad still incur fees – Only focused on travel spending – if you want a credit card for daily use, it might be best to look at other options

4. Virgin Money Everyday Cashback Credit Card

Key Features	Details
Annual Fee	None
Foreign Transaction Fee	None
Perks	Earn 1% cashback on spending for the first 3 months (0.25% afterwards); up to £15 cashback per month; extra Virgin Money Cashback offers through partner retailers; cashback automatically credited to your account; no annual fee
Best for	Everyday spenders who want simple cashback rewards at home and abroad, without foreign transaction fees

Pros of Virgin	Cons of Virgin
– No annual fee – No foreign transaction fees on overseas purchases – Earn cashback both in the UK and abroad – Extra cashback through Virgin Money partner retailers	– Cashback capped at £15 per month – Cashback excludes cash-like transactions (e.g. ATM withdrawals, buying currency) – APR of 24.9% (variable) applies if balances are not paid in full – Limited travel perks compared to premium cards

5. HSBC Rewards Credit Card

Key Features	Details
Annual Fee	£0
Foreign Transaction Fee	2.99% on non-GBP purchases
Perks	Earn reward points on everyday spending; 2,500 welcome points (worth £25) after your first transaction; additional 2,500 bonus points each year when spending £10,000+ (for up to 5 years); 0% interest on purchases and balance transfers for the first 6 months (2.99% fee applies for balance transfers)
Best for	Existing HSBC customers who want a simple rewards card

Pros of HSBC	Cons of HSBC
– No annual fee – Earn reward points on all eligible purchases – Welcome points bonus and anniversary rewards – 0% interest on purchases and balance transfers for 6 months – 24/7 worldwide assistance	– 2.99% fee on foreign transactions – Must hold an HSBC current account (Advance, Bank, or Premier) – Reward value is modest compared to other schemes – Cash withdrawals incur additional fees and high interest charges

6. Halifax Clarity Credit Card

Key Features	Details
Annual Fee	No fee
Foreign Transaction Fee	None
Perks	No fees on purchases or cash withdrawals abroad; Mastercard exchange rates; 24/7 fraud protection; manage everything via the Halifax app
Best for	Those who want a simple, no-fee card for overseas spending and cash withdrawals

Pros of Halifax	Cons of Halifax
– No foreign transaction fees on spending abroad – No cash withdrawal fees overseas (though interest is charged from the withdrawal date) – Widely accepted as part of the Mastercard network – No annual fee	– No rewards or cashback program – Interest applies immediately on cash withdrawals, even if you pay it off in full – You’ll need to be employed and have a regular income to be eligible  – Doesn’t include premium extras like insurance or lounge access

7. Tesco Bank Clubcard Credit Card

Key Features	Details
Annual Fee	None
Foreign Transaction Fee	2.75% on overseas purchases
Perks	0% interest on purchases for 20 months; 0% interest on balance transfers for 20 months (2.75% fee); earn Tesco Clubcard points almost every time you spend; unlock Clubcard Prices with your card
Best for	Those who shop regularly at Tesco, speading the cost of purchases, transfer balances, and earning rewards on everyday spending

Pros of Tesco	Cons of Tesco
– No annual fee – 0% interest on purchases for 20 months – 0% balance transfer for 20 months with a low fee – Earn Clubcard points on Tesco and non-Tesco spending	– 2.75% fee on foreign transactions – 3.99% cash withdrawal fee  – Rewards value is modest outside Tesco Limited perks beyond Clubcard points

The smart alternative: Why Wise beats traditional credit cards

Credit cards can be useful, but many come with hidden costs such as foreign transaction fees and exchange rate markups – not to mention cash withdrawal charges. For expats who need a simple way to manage money across borders, the Wise debit card can often be the more cost-effective choice.

With a Wise Multi-Currency Account, you can hold, send and spend in 40+ currencies at the mid-market exchange rate that you’ll find on Google. That means no markups and no surprise foreign transaction fees when you spend abroad. The card works in 150+ countries, giving you flexibility whether you’re settling into life in the UK or travelling elsewhere.

Wise debit card benefits

• True mid-market exchange rates with no hidden markups, unlike many banks and traditional credit cards.
• Low, transparent fees starting from 0.33% depending on the currency, which are often lower than the 2–3% charged by credit cards for foreign spending.
• Global access with one debit card that works in 150+ countries with no foreign transaction fees.
• Multi-currency support, so you can hold and manage 40+ currencies in one account.
• Real-time control with instant spending notifications, the ability to freeze or unfreeze your card in the app, and budgeting tools that make it easier to manage money day to day.

Cost comparison: Wise vs. credit cards

Small differences in fees can add up quickly when you’re living abroad or travelling. 

Example 1: To see the real impact, here’s a simple comparison of spending £1,000 in the euro area with a HSBC Rewards Credit Card versus the Wise debit card.

Spend abroad	Wise debit card	HSBC Rewards Credit Card
Transaction value	£1,000	£1,000
Exchange rate	Mid-market rate with no markup	Visa/Mastercard rate plus possible markup
Foreign transaction fee	None	2.99% = £29.90
Total cost	£1,000 + small Wise conversion fee starting from 0.33%	Around £1,030 including fees, plus a markup

With Wise, you’d pay close to the real exchange rate with only a small transparent fee. Using a typical UK credit card could cost around £30 more on a £1,000 spend once foreign transaction fees and exchange rate markups are included.

Example 2:  Withdrawing €200 from an ATM in Spain with the Virgin Money Everyday Cashback Credit Card versus the Wise debit card.

Spend abroad	Wise debit card	Virgin Money Everyday Cashback Credit Card
Withdrawal amount	€200  (£173 equivalent at the time of writing)	€200 (£173 equivalent at the time of writing)
ATM fee	2 withdrawals per month up to £200: no fee	No separate withdrawal fee
Conversion fee	Small Wise fee starting from 0.33% (typically less than 1%)	None
Interest	None	Interest charged immediately from the withdrawal date
Total cost	£173 (no fee if within Wise’s £200 monthly allowance; otherwise small fixed + percentage charge)	£173 + interest (amount depends on APR and when balance is repaid)

The Wise card is often cheaper for ATM withdrawals within its monthly allowance, while the Virgin Money Everyday Cashback Credit Card applies interest immediately on cash withdrawals, even though no foreign transaction fees are charged.

When Wise makes more sense than credit cards

While they’re handy to have, credit cards aren’t always the most cost-effective way to spend or move money abroad. In many everyday situations, the Wise debit card can be the smarter choice.

For regular international money transfers

Most credit cards aren’t designed for sending money across borders, and using them for transfers often leads to high fees or cash advance charges. Wise lets you send money to over 140 countries directly from your account, with low conversion fees and the mid-market exchange rate. 

When you want to avoid credit card debt

A debit card only allows you to spend the balance you already have, making it easier to manage your budget. With Wise, you can pay directly from the currencies you hold without risking interest charges or falling into debt.

For better exchange rates

Many credit cards apply their own marked-up exchange rates when you spend abroad. Wise uses the mid-market rate, so more of your money stays in your pocket where it belongs.

For transparent, upfront pricing

Credit cards often bundle charges into interest, cash advance fees, or less favourable conversion rates. Wise shows all fees upfront in the app before you confirm a transaction, so there are no unpleasant surprises later.

How to choose the right credit card as an expat

1. Assess your spending patterns: Think about where and how you’ll use the card. If you’ll be spending abroad often, a card with no foreign transaction fees may save you the most. If you mainly need to spread the cost of purchases, look for a card with a long 0% introductory period.
2. Calculate potential fees and savings: Add up any annual fees, foreign transaction fees and likely interest charges and compare them against the value of any cashback, rewards, or travel perks to see if you’ll come out ahead.
3. Consider your credit history status: If you’re new to the UK, you may not yet have a strong credit record. Entry-level cards with lower eligibility requirements can be a useful first step before moving on to premium options later.
4. Evaluate if additional benefits are needed: Some cards come with extras like travel insurance, lounge access, or retailer discounts. Make sure you’ll actually use these benefits before paying higher fees. 
5. Check eligibility requirements: Each provider sets its own rules for income, residency and credit history. Checking these in advance helps avoid rejections that can harm your credit score.

Questions to ask before applying

• What are the total costs of international spending, including fees and exchange rate markups?
• Do I qualify for this card based on my current credit history?
• What additional benefits do I actually need?
• How does this option compare with alternatives like the Wise debit card?

Application tips for expats

Applying for a credit card in the UK can feel challenging if you’ve only recently arrived. But, knowing what providers look for and how to prepare can make the process faster and smoother.

Building a UK credit history

Credit providers in the UK rely heavily on local credit records. Start by registering on the electoral roll (if eligible), opening a UK bank account and making regular payments on bills or a mobile contract to establish your history.

Required documentation

Most credit card applications will ask for proof of identity, such as a passport or residence permit, and proof of address. Make sure these documents are up to date and match your application details.

Income verification for expats

Lenders may ask for recent payslips, a UK employment contract, or bank statements showing regular income. Freelancers or self-employed expats may also need to provide additional documentation such as tax returns.

Address history requirements

Some providers ask for a minimum of three years’ UK address history. If you’ve recently arrived, look for cards with more flexible requirements or consider starting with an entry-level card.

Common rejection reasons

Insufficient UK credit history: Having no local credit record is one of the most common reasons expats are declined, so start small and build up gradually.

Income verification issues: If you can’t provide sufficient proof of income, lenders may be reluctant to approve your application. 

Address verification problems: Providers need to confirm your UK address. If your documents don’t match or you’ve recently moved, this can cause delays or rejections.Too many recent applications: Multiple credit applications in a short period can signal risk to lenders and lower your chances of approval. Focus on applying only for cards you’re confident you’re eligible for.

Building credit history as an expat

For many expats, one of the first financial challenges in the UK is building a local credit history. Even if you had an excellent record in your home country, lenders in the UK won’t be able to access it, and without a UK credit file, applications for loans and mortgages may be declined.

A credit card can be one of the most effective ways to build this profile. Using it regularly for everyday purchases and paying the balance off in full each month shows lenders that you can manage borrowing responsibly. Over time, this consistent behaviour helps create a positive record that makes it easier to access higher credit limits and more competitive products. 

If you’re not eligible for a mainstream card at first, there are still ways to lay the groundwork. Registering on the electoral roll if you qualify, setting up household bills in your own name, or maintaining a UK current account in good standing can all contribute to your file. Some expats also start with credit-builder cards or small loans, though these usually carry higher interest and should be approached with caution. 

With steady management of your finances, many newcomers see improvements within the first year, while a strong, well-rounded credit record usually takes several years to establish. It’s completely normal to face hurdles at the start, but each small step brings you closer to a stronger financial footing in the UK.

Managing your credit card abroad

Using a UK-issued credit card while travelling or living overseas can be convenient, but it also comes with risks if not handled carefully. Taking a few simple steps helps ensure your card remains a safe and reliable way to pay.

Best practices for international spending

• Always choose local currency over home currency: Paying in the local currency usually gives you a better exchange rate and avoids costly conversion fees.
• Notify your bank of travel plans: Let your provider know where you’ll be to prevent transactions being blocked for suspected fraud.
• Monitor transactions regularly: Check your account through online or mobile banking to spot and report any suspicious activity quickly.
• Keep emergency contact numbers handy: Always keep your provider’s helpline details available so you can act fast if your card is lost, stolen, or blocked.

Avoiding common pitfalls

• Dynamic currency conversion traps: Merchants or ATMs may offer to charge you in pounds instead of the local currency, but the rates are usually unfavourable.
• ATM fee accumulation: Withdrawing cash regularly while abroad can lead to high fees, both from your provider and from the ATM operator.
• Overspending due to currency confusion: Switching between pounds and local currencies can make it harder to track your budget, increasing the risk of overspending.
• Missing payment due dates while travelling: Late payments can harm your credit record, so setting up a direct debit for at least the minimum amount is a good safeguard.

Frequently asked questions

Conclusion

Choosing the right credit card as an expat in the UK depends on your lifestyle, spending patterns and financial goals. Some cards are better for rewards or travel perks, while others keep costs low with no annual fee. The most important step is to look beyond headline offers and compare the total cost of using a card, including foreign transaction fees and exchange rates.

By taking the time to compare your options and total costs, you can avoid hidden fees and make the most of your money, whether you’re spending in the UK or abroad. And while credit cards can be useful tools, they’re only one part of managing your finances as an expat.

Alongside traditional credit cards, alternatives such as the Wise debit card can be a useful tool in your finance arsenal, and many people find that combining both options works well. A credit card can provide the rewards, insurance, or lounge access that upgrade your travel experience, while a Wise debit card can cover everyday spending abroad. Using both together means you can take advantage of the benefits while avoiding unnecessary fees on conversions or withdrawals.

With transparent pricing, the mid-market exchange rate, and no foreign transaction fees, Wise offers a simple way to spend internationally while keeping full control through the Wise app.

Useful Resources

Barclays – Platinum Credit Card – Official page with details on fees, balance transfers, and features (Checked August 2025)

American Express – Preferred Rewards Gold Credit Card – Official Amex UK page outlining benefits, fees, and eligibility (Checked August 2025)

NatWest – Travel Reward Credit Card – Official NatWest page with information on rewards, fees, and foreign use (Checked August 2025)

Virgin Money – Everyday Cashback Credit Card – Official Virgin Money page with card features, terms, and overseas benefits (Checked August 2025)

HSBC – Rewards Credit Card – Official HSBC UK page on the Rewards Credit Card including fees and perks (Checked August 2025)

Halifax – Clarity Credit Card – Official Halifax page with details on using the Clarity card abroad (Checked August 2025)

Tesco Bank – Balance Transfer Credit Card – Official Tesco Bank page with benefits and fees (Checked: August 2025)
Wise – Debit card and multi-currency account – Official Wise page explaining how the debit card works, including fees and benefits (Checked August 2025)