7 Best credit cards in the UK: complete guide 2026

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 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  – Eligibility depends on your circumstances and Barclaycard’s assessment, so it is worth using the eligibility checker before applying – 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; 3x points on eligible spending with American Express Travel, 2x on purchases made directly with airlines or in a foreign currency, and 1x on other purchases; four complimentary Priority Pass lounge visits per year; up to £120 yearly Deliveroo credit; Travel Accident and Travel Inconvenience Insurance subject to conditions
Best for	Frequent travellers and expats who can make good use of the card’s rewards and travel benefits despite the foreign transaction fee

Pros of American Express	Cons of American Express
– No annual fee in the first year – Eligible new Cardmembers can earn 20,000 Membership Rewards points after spending £3,000 in the first three months – Up to four complimentary Priority Pass lounge visits per year – Up to £120 yearly Deliveroo credit – Purchase Protection plus Travel Accident and Travel Inconvenience Insurance, subject to terms	– £195 annual fee from year two – 2.99% fee on foreign spending – Not as widely accepted as Visa or Mastercard – Minimum annual income of £20,000

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 NatWest
– 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 advances and other non-purchase transactions – Representative APR of 27.9% (variable) – A 5% cash advance fee applies to ATM withdrawals – Limited travel perks compared with 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	UK residents who want a no-annual-fee rewards card and meet HSBC’s eligibility requirements

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 – Minimum annual UK taxable income or pension requirement of £6,800 – Reward value is modest compared with some premium rewards cards – Cash withdrawals can involve additional fees and 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 Balance Transfer and Purchases Credit Card

Key Features	Details
Annual Fee	None
Foreign Transaction Fee	2.75% on transactions in a foreign currency
Perks	0% interest on purchases for 21 months from account opening; 0% interest on balance transfers for 21 months with a 2.95% transfer fee; collect Clubcard points on eligible spending
Best for	Tesco shoppers who want Clubcard rewards alongside an introductory 0% period for purchases and balance transfers

Pros of Tesco	Cons of Tesco
– No annual fee – 0% interest on purchases for 21 months – 0% interest on balance transfers for 21 months – Earn Clubcard points on Tesco and non-Tesco spending	– 2.75% foreign exchange fee – 2.95% balance transfer fee – 3.99% cash withdrawal fee, with a £3 minimum – Rewards value is more focused on Tesco shoppers

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 and territories, 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 and territories with no separate foreign transaction fee just for using the card abroad.
• 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 equivalent	£1,000 equivalent
Currency conversion	Mid-market exchange rate, with a Wise conversion fee if conversion is required	Card-network exchange rate
Non-sterling transaction fee	None simply for using the card abroad	2.99% = £29.90 on a £1,000 equivalent transaction
Total cost	£1,000 equivalent plus any applicable Wise conversion fee, currently starting from 0.33%	£1,029.90 equivalent after HSBC’s 2.99% fee, subject to the applicable card-network exchange rate

The key difference is that HSBC applies a 2.99% non-sterling transaction fee, while Wise does not charge a separate fee simply for using the card abroad. Wise may instead charge a transparent currency conversion fee when it needs to convert your balance.

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

Cash withdrawal abroad	Wise debit card	Virgin Money Everyday Cashback Credit Card
Withdrawal amount	€200	€200
Foreign exchange fee	No separate foreign transaction fee; a currency conversion fee may apply if Wise needs to convert your balance	None with the Everyday Cashback Credit Card
Cash withdrawal fee	Wise does not charge an ATM fee on the first £250 withdrawn per account each month; a 2.69% fee applies to the amount above that allowance	5% cash advance fee
Other possible costs	The ATM operator may charge its own fee	The ATM operator may also charge its own fee

For a €200 withdrawal, Wise can therefore be cheaper if you are still within your monthly £250 fee-free ATM allowance. Virgin Money does not charge a foreign exchange fee on its Everyday Cashback Credit Card, but it does charge a 5% cash advance fee when you withdraw cash.

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. Before submitting a full application, use a soft-search eligibility checker where available. A formal credit application usually creates a hard search on your credit report, and making several applications within a short period can affect 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 credit card providers ask for your address details covering the previous three years, but this does not necessarily mean you must have lived in the UK for all three years. Requirements vary by provider, so if you have recently arrived, check how the lender handles previous overseas addresses before applying.

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 hard credit searches within a short period can affect your credit score and may make lenders more cautious. Use soft-search eligibility checkers where possible before making a full application.

Building credit history as an expat

For many expats, one of the first financial challenges in the UK is building a local credit history. Your overseas credit data is not automatically transferred into a UK credit file, so lenders may have limited UK information on which to assess you when you first arrive. However, it can still be worth keeping a copy of your overseas credit report, as some lenders may consider it when assessing an application.

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.
• Check your provider’s travel policy: Many major UK card issuers no longer require you to register travel plans before going abroad. Check your provider’s current guidance instead, and make sure your mobile number and other contact details are up to date in case the issuer needs to verify a transaction.
• 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

Barclaycard

Barclaycard Rewards – current cashback, APR and overseas-use information

American Express

American Express Preferred Rewards Gold Credit Card – current fees, welcome offer, rewards, travel benefits and eligibility

American Express Global Card Transfer – moving an existing American Express relationship to the UK

NatWest

NatWest Travel Reward Credit Card – current rewards, fees and overseas-use terms

NatWest credit card applications – documents and address-history requirements

NatWest travel notification guidance – current guidance on using cards while travelling abroad

Virgin Money

Virgin Money Everyday Cashback Credit Card – current cashback, APR and card features

Virgin Money – using your credit card abroad – foreign exchange and cash advance fees

HSBC

HSBC Rewards Credit Card – rewards, eligibility and current card terms

HSBC credit card fees – current non-sterling transaction and other credit card fees

HSBC – using your card abroad – overseas card use and travel notification guidance

Halifax

Halifax Clarity Credit Card – current card terms, fees and overseas use

Halifax – using debit and credit cards abroad – overseas card-use and travel guidance

Tesco Bank

Tesco Bank Balance Transfer and Purchases Credit Card – current 0% periods, fees and Clubcard rewards

Tesco Bank credit card charges – foreign currency, balance transfer and cash withdrawal fees

Wise

Wise international debit card – supported currencies, countries and card features

Wise UK pricing – current currency conversion and card fees

Wise ATM withdrawal structure and fees – current monthly ATM allowance and withdrawal charges

Credit history and applications

MoneyHelper – checking your credit report – hard versus soft credit searches and their impact

MoneyHelper – what to do after being refused credit – guidance on declined applications and future applications

MoneyHelper – improving your credit score – ways to build and protect a UK credit record

Experian – location and address information – how moving country affects your credit information

Experian – building credit history – guidance for establishing a UK credit record