Credit cards in the US: How to find the right one

According to data from The Federal Reserve, credit cards accounted for around 31%-35% of all transactions in the last few years. Having a good credit card can unlock better rates, access and even rewards.

But it’s not always that easy for expats, who may have little to no credit score in the US. In this guide, our experts will explain how to find the right card for you, and touch on how alternative accounts like Wise can help you manage your money abroad.

Key features to look at

• Look out for foreign transaction fees. If your card charges a foreign transaction fee you’ll pay an extra percentage every time you transact in a foreign currency. This can push your spending up by about 3% on overseas purchases.
• Choose competitive exchange rates. Credit cards usually use the network exchange rate for conversions which can be more expensive than the mid-market rate due to hidden fees and mark-ups.
• Get a card with global acceptance. Visa or Mastercard are pretty much used everywhere, whereas Amex or Discover are less widely accepted.
• Look for travel benefits and protections. If you need to travel often, look for cards with complimentary insurance, lounge access or travel concierge programs.
• Pick reward programs that suit international lifestyles. Many cards offer reward points or cash back on spending, and some have higher rates of earning specifically on travel spend.
• Select a card with easy online management and customer support. Make sure you know how to get in touch with your card issuer if you have a problem when you’re overseas. Most cards have 24/7 services online, in app or by phone.

How to choose the right credit card: Step-by-step guide

Follow our 5-step breakdown to choose the right credit card for you as an expat in the US:

5 credit cards for expats in the US

We’ve selected 5 quite different credit cards to suit a variety of customer needs, including cards with no annual fee, cards for building a credit history, and cards with great rewards.

All 5 cards have no foreign transaction fee, which can be a bonus for expats in the US who need to travel home or to other countries, as you won’t incur costs when spending in currencies other than USD. Keep in mind that other fees may apply with these cards.

American Express Gold Card

Great for: Accessing travel rewards and benefits, with no foreign transaction fee when you’re overseas

Key features

• Annual or monthly fees: 325 USD annual fee
• Exchange rates and conversion fees: AMEX rate, no foreign transaction fee
• Benefits: 4x rewards on restaurants: groceries and up to 5x rewards on travel costs

The American Express Gold Card has a moderate annual fee at 325 USD, and offers rewards on spending including 4x rewards on restaurants and groceries and up to 5x rewards on travel costs.

You can also unlock bonus features like specific discounts from partner retailers, and travel features like hotel vouchers, baggage insurance and insurance when you hire a vehicle.

Pros of American Express Gold Card	Cons of American Express Gold Card
✅No foreign transaction fee ✅High rewards on daily spending on groceries and extra on travel costs ✅Option for baggage and car hire insurance ✅Travel extras like credit when you stay in partner hotels	❌325 USD annual fee ❌Cash advance fees when you use an ATM ❌American Express isn’t always accepted in some countries

Bank of America Travel Rewards Credit Card

Great for: Reward earning opportunities every time you spend, which you can redeem as statement credit to pay for travel and dining purchases.

Key features

• Annual or monthly fees: No annual fee.
• Exchange rates and conversion fees: Network rate, no foreign transaction fee.
• Benefits: Flat reward rate on all purchases, 1.5 points/dollar.

The Bank of America Travel Rewards Credit Card has no annual fee and can be a good pick for expats in the US who want to earn steady returns in the form of statement credits.

This has the advantage that you can use the points you earn to spend on any website and without blackout dates, offering great flexibility if you’d like to use your card points to travel home for a visit.

Pros of Bank of America Travel Rewards Credit Card	Cons of Bank of America Travel Rewards Credit Card
✅No annual fee ✅Earn on every dollar you spend ✅Redeem points as statement credit with no blackout dates ✅Points do not expire	❌Cash advance fees apply ❌You may pay interest if you don’t clear your bill in full ❌Promotional offers can vary depending on how you apply

Chase Sapphire Preferred Credit Card

Great for: Excellent range of travel assistance and insurance, with up to 5x reward earning on travel spend.

Key features

• Annual or monthly fees: 95 USD annual fee
• Exchange rates and conversion fees: Network rate, no foreign transaction fee
• Benefits: Reward earning, with complimentary insurance

The Chase Sapphire Preferred Credit Card may suit expats in the US who still need to travel a lot, with increased reward earning opportunities when you book flights and hotels, and ways to access insurance to cover trip disruption, baggage delay and auto rental.

There’s a low annual fee to pay, which can help you access partner discounts, vouchers and benefits in addition to the rewards you earn as you spend.

Pros of Chase Sapphire Preferred Credit Card	Cons of Chase Sapphire Preferred Credit Card
✅Excellent travel rewards and perks ✅No foreign transaction fee ✅Get complimentary insurance for various travel needs ✅New customer benefits on offer	❌95 USD annual fee ❌Cash advance fees apply at the ATM ❌Late payment fees may apply

Discover it Secured Credit Card

Great for: Expats who need to build a US credit history with a secure credit card.

Key features

• Annual or monthly fees: No annual fee
• Exchange rates and conversion fees: Network rate, no foreign transaction fee
• Benefits: Secure card for credit building

A Discover it Secured Credit Card can be a good pick if you don’t yet have a US credit history. You can apply and pay a deposit which will then be equal to the credit line you’re offered.

By repaying your bills on time every time you can build a positive credit score, which may even mean you can get an unsecured card in as little as 7 months.

Pros of Discover it Secured Credit Card	Cons of Discover it Secured Credit Card
✅Low or no credit score customers accepted ✅No foreign transaction fee ✅No annual fee ✅Option to get an unsecured card after 7 months	❌You need to pay a deposit to use your card ❌Interest rates can be fairly high ❌Cash advance fees apply at the ATM

Capital One Venture X Card

Great for: Expats in the US who have already built a good credit score and want a premium type card.

Key features

• Annual or monthly fees: 395 USD annual fee
• Exchange rates and conversion fees: Network rate, no foreign transaction fee
• Benefits: Premium card with excellent rewards, for people with strong credit history

The Capital One Venture X Card has a high 395 USD annual fee and offers in return a 2x reward earning rate, which rises to 10x on select travel spending. Other travel perks include no foreign transaction fee, hotel credit at select partner hotels, and upgrades when you hire a car – plus you can access Capital 1 lounges in airports for free.

You’ll need a strong credit score to be offered this card, but you can check your eligibility online without impacting your score which can help you check if the card is suitable for you.

Pros of Capital One Venture X Card	Cons of Capital One Venture X Card
✅Excellent reward earning on travel spending ✅Strong rewards on daily spend, at 2x ✅Access airport lounges when you travel ✅Get car hire upgrades and discounts	❌395 USD annual fee ❌Not suited to very new arrivals with no US credit history ❌Penalty and late fees can apply

Can I get a US credit card as a new expat?

Credit card issuers set their own eligibility criteria which may include a minimum credit score. If you’re a new arrival in the US and do not have a local US credit history, your choice of cards may be somewhat limited. However, many providers offer secured credit cards which you can use to build your credit history in just a matter of months to move over to an unsecured card in future.

Alternativs to credit cards for expats in the US

A credit card may not always be the right option, especially if you don’t have a decent credit score in the US or a deposit for a secure card. An international debit card like the Wise Multi-Currency Card can be an excellent alternative to credit cards for expats in the US.

With your Wise Multi-Currency Card you can spend in 160+ countries, with no fee to spend when you have enough balance in the currency required to cover the purchase. If you don’t have enough of the required currency, the card can manage the conversion for you using the mid-market exchange rate and low conversion fees, and no foreign transaction fee added.

It is a debit card not a credit card which means you will need a balance in your account before you spend. It also means there’s no risk of running into debt and being charged interest or penalty fees, and no need for a credit check when you sign up to get your card.

Wise Multi-Currency Card benefits

• Mid-market exchange rates
• Low, transparent fees – currency conversion fees vary based on currency, from 0.57% 
• No foreign transaction fees (it can be 1-3% on credit cards)
• Hold and manage 40+ currencies and spend in 160+ countries (You can also spend in currencies you don’t hold in your account)
• Debit card that works globally
• Real-time notifications and spending control through the mobile app
• Easily freeze and unfreeze your card using the mobile app
• Digital cards for convenient payments online or through your mobile phone

When a multi-currency account a good alternative

Here are some great ways you may want to use a multi-currency account, like Wise, instead of a credit card:

• When you want to avoid credit card debt and manage your money in an app
• To spend internationally in 160+ countries with no foreign transaction fees
• If you’re looking for mid-market exchange rates with low conversion fees to keep the costs low
• If you want to hold a multi currency balance to save or for paying bills later
• For regular international money transfers with transparent, upfront pricing
• To send large international transactions with discounted fees and great rates
• Whenever you need to receive payments in USD or foreign currencies – you can get local account details in 8+ currencies to get paid easily from abroad

Understanding credit card fees for international spending

If you travel a lot, or spend online in international retailers, you’ll need to think about the way your card charges for foreign currency transactions. Here are a few things to know:

• Foreign transaction fees: Foreign transaction fees are usually a percentage added to the mid-market rate which push up the cost of your overseas spending. This can mean a purchase overseas costs about 3% more than buying in the US.
• ATM withdrawal fees abroad: Using your card to get cash from an ATM may incur a cash advance fee – often 5% of the withdrawal value – plus instant interest and any foreign transaction fee which applies. This can be very costly in the end.
• Dynamic currency conversion traps: If you’re asked if you’d prefer to spend in USD when you’re overseas, just say no. Spending in your home currency (so USD in this case) means the merchant converts your payment for you, with higher fees than your bank or card issuer will. Pay in the currency of the country you’re in, every time, for the best overall cost.
• Annual fees vs. benefits analysis: Finally, make sure you weigh up the cost of annual fees for your credit card against the benefits you expect to receive. Annual fees can be hundreds of dollars so making sure you get value for money is essential.

Common reasons you may be rejected for a credit card

If you’ve been rejected for a US credit card, it may be because of one of these common rejection reasons:

• Insufficient US credit history
• Income verification issues
• Address verification problems
• Too many recent applications

You may be able to reach out to the card issuer to ask for more details about the rejection, or talk to bank staff. If you need to build US credit history there are also some key steps to take, which we’ll look at next.

Building credit history as an expat

Building credit history as an expat is important as you may find that without a solid credit score it’s harder to access any sort of financing. The good news is that with careful use credit cards can help build credit. You can apply for a secured or basic credit card and use it responsibly to grow your credit score. By avoiding maxing your card limit monthly, and paying back on time and in full every time, you can see improvements in your credit score.

Discover suggests that their secured card could see you ready to move to an unsecured card in as little as 7 months. If you don’t want to use a credit card to build your credit score you could improve it with a service like Experian Boost which lets you use other bill payments for utilities, your cell phone and so on, to build your score more quickly.

Managing your credit card abroad

Once you have a US credit card you may want to use it when you travel overseas. Don’t forget that there are usually a few common sense steps you’ll need to take before you travel with your credit card:

• Notify your bank of travel plans – check if your bank needs you to tell them of your travel plans to avoid your card being blocked when you use it overseas
• Update your contact details if needed – make sure your bank has the right details for you in case of any issues when you’re away
• Monitor transactions regularly – use your bank’s app to keep on top of your transactions and in case of fraudulent card use
• Choose local currency over home currency when you pay – avoid the extra costs of dynamic conversion by paying in the local currency wherever you are rather than in dollars
• Keep emergency contact numbers handy – know how to call your bank if your card is lost or stolen to avoid adding stress to a difficult situation if you misplace your credit card

Avoiding common pitfalls

Let’s finish up with a few common issues with using a credit card internationally so you can avoid any unnecessary headaches:

• Watch out for ATM fee accumulation: If you’re taking cash from an ATM with your card, the cash advance fees can be around 5%, with interest payable immediately. This can accumulate quickly
• Overspending due to currency confusion: Keep an eye on the currency exchange rate so you’re not caught out by confusion over what a purchase might cost you in dollars when you travel
• Missing payment due dates while traveling: Avoid late payment penalties by paying all your bills on time, even when you’re away from home

Conclusion

Having a credit card as an expat in the US can be a helpful tool, both for day to day spending and also to grow your credit score to help you access more financial services in future. However, you’ll need to weigh up the costs and benefits of any cards you consider to make sure you get a good deal in the end. This guide gives you some pointers to think about, and a few cards to compare – but there are thousands of options on the US market which mean you’ll need to do a bit of research yourself too.

Don’t forget to also consider adding in an option like the Wise Multi-Currency Card to spend for less when you travel. Use your card when you’re abroad alongside your credit card for domestic use, to get low conversion fees, ways to make ATM withdrawals with low or no costs, and the option to hold 40+ currencies conveniently all in one place.

Sources

• Federal Reserve Bank of Atlanta – Survey and Diary of Consumer Payment Choice
• Wise – manage your money across borders easily
• US government – how to check credit score
• Experian – credit score bureau
• Experian Boost – improve your credit score with or without a credit card
• American Express – American Express Gold Card
• Bank of America – Bank of America Travel Rewards Credit Card
• Chase – Chase Sapphire Preferred Credit Card
• Discovery – Discover it Secured Credit Card
• Capital One – Capital One Venture X Card