Moving can be stressful. Making sure your fragiles are packed so they don’t break, deciding on a DIY move or hiring professional movers, managing security deposits or down payments on both ends of the move — moving cross country could overwhelm even the most relaxed person.
But there are steps you can take ahead of time to help make the process go more smoothly.
Reduce, Reuse, Recycle
The three Rs aren’t just good environmental stewardship — they’re also essential for planning a cross-country move.
After all, moving is a great time to embrace your inner minimalist and get rid of absolutely everything that’s no longer needed. Not only does decluttering help cut down on moving costs, it also helps you avoid filling up the new place with meaningless stuff.
Instead of just throwing away unwanted goods, trying to find them a new home might give them a second life. Furniture items can be sold online or in consignment stores to raise a bit of extra money for the moving fund, or they can be donated to a thrift store.
Professional clothes that are no longer worn could help someone if donated to a job readiness program. Animal shelters often take donations of old sheets and blankets to make cuddly beds for their charges.
Local freecycle or buy-nothing groups can also be great places to unload unwanted home goods. You never know who has a use for those five dish strainers you’ve somehow accumulated.
💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.
Pack Like a Pro
Once you’ve decluttered, it’s time to get packing. Resist the urge to throw everything into a medium-sized box and call it a day. Taking the time to pack up your home like a professional will make moving — and the subsequent unpacking — a whole lot easier.
First, gather your packing supplies. You’ll want to make sure you have plenty of boxes of varying sizes, several rolls of packing tape, large black markers, scissors, a utility knife, and several types of packing materials, like old newspaper, bubble wrap, and even old rags or sheets.
Start by packing up non-essentials, like seasonal home goods, out-of-season clothes, and rarely used kitchen goods.
Make sure to wrap all fragile items in paper or bubble wrap before putting them in boxes. Plates can be packed next to each other vertically, which helps prevent breaking. Likewise, adding a layer of crumbled newsprint or packing paper on the bottom of your box can also help prevent breakage.
Aim to keep each box light enough to lift alone, with heavy items on the bottom and lighter items on top. Don’t forget to pack similar items together. No one wants to arrive at their new home and find their dishes somehow got packed next to the cat’s litter box.
One of the most challenging parts of planning a move across the country — or even to another state — can be planning the actual transportation. Will you fly, and then ship your cargo to your new home? Hire a moving company to pack everything up and unpack it at your new place? Rent a cargo trailer and drive across the country?
Each option has its benefits and its drawbacks, but choosing the mode of transportation that best fits your needs and budget can help keep your move as stress-free as possible. And, depending on the mode you choose, it could help you keep your budget intact, too.
Hire a Moving Company
The easiest, and usually the most expensive, option is to hire a moving company and let them take care of the details. Using a moving company for a cross-country move can cost between $2,000 and $8,000. That figure can rise when you add in fuel costs, fees, and insurance.
Some moving companies will send someone out to take a look at how much stuff you plan to move to give a more accurate cost estimate. They may also estimate the weight of the load and calculate how far you plan on moving when giving you the final estimate.
If you’re hiring movers, one way to cut down on expenses is to pack and unpack your stuff yourself. Asking for personal recommendations, reading online reviews, and getting a few different quotes before deciding on a moving company can help you get the best company for your needs.
Ship Your Belongings
If you don’t have any big furniture to move, you may be able to get away with shipping your goods and hopping on a plane with just your essentials.
Shipping your goods as freight can be a more affordable option, whether you send them via mail, train, or even take a few boxes as checked baggage on the flight.
The downside is that unless the boxes are traveling on your flight with you, you may end up waiting a while for them at your destination. And, like all mail, there is always a chance things could be lost or damaged during the journey.
Rent a Truck or Trailer
Many movers choose to take the DIY route and rent a cargo truck or trailer to haul their worldly possessions. This can be a budget-friendly option, but remember that for all the cost savings, you’ll be putting in a lot more hard work.
You’ll need to pack and load all your boxes and furniture into the trailer yourself. On top of packing, you’ll also have to be comfortable driving the cargo truck or trailer the hundreds or thousands of miles that lie between you and your destination.
💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why credit card consolidation loans are so popular.
Budgeting for Your Move
Still wondering how to move across the country without going broke? There’s no doubt about it: moving is expensive.
And don’t forget to include the additional costs of moving, like a down payment on your new place, or first and last month’s rent, and the cost of setting up your new home with all the essentials.
On top of that, moving often coincides with changing jobs, which may mean that you have a few weeks where you could be without a paycheck. All of this makes moving across the country financially draining for many people.
If you know you’ll be moving in the future, saving up now and using any money you make selling unwanted goods can be a good way to build up your moving fund.
Some people, however, realize they need a little more help in covering the upfront costs of moving across the country. When you need quick cash for your move, a relocation loan can be an option worth exploring, as some lenders disburse loan funds within a few days. The money can cover a wide range of moving costs, from deposits to storage to professional movers, transportation, and even hotel stays.
A personal loan may offer lower interest rates than many credit cards do and, unlike a credit card, a personal loan is not revolving credit. That means the loan is for a set amount of money and paid back over a fixed period of time.
Moving across the country can be overwhelming, but there are ways to help make the process feel less stressful. Getting rid of things you no longer want or need is a good place to start. Just as important is how you plan on transporting your belongings to your new home. Hiring movers is generally considered the easiest option, though it tends to also be the most expensive. If you’re looking to keep expenses down, you may decide to ship your items or rent a truck and drive them across the country yourself.
As you’re creating your moving budget, be sure to factor in the cost of setting up your new home. This may include the down payment or security deposit on your new place and paying for groceries, new furniture, and other essentials.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Is your bedroom cluttered, depressing, and lacking warmth and coziness? If so, perhaps it’s time for a bedroom remodel, an awakening of a room that can range from paint to structural changes.
If you’re a homeowner looking to spice up or calm down your bedroom, know that bedroom remodels can have a return on investment of 40% to 80%, according to HGTV.
The steps you can take to renovate rooms aren’t too onerous and can often be done without the help of a contractor or other professional. Let’s take a look at the cost to remodel a bedroom, bedroom remodel ideas, and how to pay for a bedroom remodel.
How Much Does It Cost to Remodel a Bedroom?
The amount of money you put into a bedroom remodel depends on what you’re trying to achieve. Do you simply want to change up your décor, including your bed, bedside tables, and desk? Or do you want to paint the room a different color and add some window treatments?
You may also be looking at more extensive changes, such as ripping up carpeting and putting in new flooring, installing new windows, or building custom cabinetry in your closet.
The good news is that most bedroom remodels are less costly than renovations that entail taking down walls, rewiring electrical systems, and installing pipes, though some bedroom remodels may call for these types of tasks.
With a bedroom remodel, you’re less likely to be doing major construction that requires hiring licensed professionals like a carpenter, plumber, or general contractor. And even if you have to rely on the services of a vendor, there are likely other aspects of the project you can tackle yourself.
Decluttering is a tried-and-true way to visually open up a room. That means organizing books and magazines, laundry or piles of clothes, and furniture. Here are some other ways.
Painting
House-paint companies boomed during the pandemic, ARTnews pointed out. Gray — all 50 shades — were out. Warm tones and deeply saturated color were in.
Some of the major brands and independent companies offer online color consultations. And then, if you feel up to the task, you can avoid hiring a painter by painting your walls yourself.
You’ll want to take stock of the current trim and match a color to it. You’ll also want to consider how the room changes color depending on the time of day. Sometimes a room that looks white in the evening can take on a yellowish tint during the light of day.
You’ll want to make sure you have all the equipment you need to get the work done efficiently and well. This includes paintbrushes, a paint roller and pan, rags, sandpaper, and drop cloths.
The great thing about paint is, if you feel you’ve done a poor job in spots, you can always paint over it.
💡 Quick Tip: You deserve a more zen mortgage. Look for a mortgage lender who’s dedicated to closing your loan on time.
Flooring
What you do with your floors is going to depend largely on personal taste. Your choices include wall-to-wall carpeting, wood or wood-engineered flooring with or without area rugs, and tile or ceramic flooring, which works best in humid climates.
You’ll want to think about how your flooring will complement the rest of the room, including furniture. You’ll also want to take your comfort into consideration. Carpeting, for example, muffles sound, while wood flooring does not.
Some people don’t like walking barefoot on anything besides carpet, for example, while others prefer the look of bare floors.
Cost may also come into play here as wood flooring is generally more expensive than carpeting, topping at $14 per square foot. Carpeting typically runs upward of $11 a square foot, HomeAdvisor notes.
Furnishings
While some homeowners may want to keep the bedroom furniture they’re currently using, others choose to sell or donate what they have and start over.
If you’re in the latter group, you’ll want to consider the paint and flooring you’ve chosen when looking for a new bed and headboard, bedside tables, desk, and dresser.
Looking online for bedroom remodel ideas can be a low-cost way to design your bedroom décor, with many blogs and websites linking to online retailers for easy purchase.
Social media sites like Houzz and Pinterest have scores of photos and boards delineated by room, color, and style to help you brainstorm.
If your budget allows, this might be an area to bring in the help of an interior designer. An interior designer may be able to see things you don’t, such as whether you need a large desk for working from home, a bench at the end of the bed for sitting, or a changing table if you plan to grow your family in the near future.
More Extensive, and Expensive, Bedroom Remodels
While bedroom remodels are typically less wide-ranging than those of a kitchen or bathroom remodel, you may opt for larger changes that can drive up your cost.
These include altering the function and structural design of a room, which may require the use of a professional.
💡 Quick Tip: Compared to credit cards and other unsecured loans, you can usually get a lower interest rate with a cash-out refinance loan.
Structural Changes
If you own a home or are looking to buy, the lack of an ensuite bathroom might be a big deal. Maybe you’d like to be able to pad into the bathroom in the middle of the night without tiptoeing through the hallway.
Depending on the layout of the bedroom and the rooms near it, this may necessitate turning a closet into a bathroom or building a door through a wall that conjoins your bedroom with that hallway bathroom.
Either way, you’re probably looking at hiring a plumber, carpenter, electrician, and contractor. While this type of remodeling affords you more options than sticking with your current footprint, it comes with added costs to be aware of.
Lighting and Fans
Adding recessed lights requires the work of a licensed electrician, who may have to work around obstacles like heating ducts, and will charge for both installing and wiring each light.
Ceiling fans, while pretty and useful, will likely also require hiring a professional installer to burrow through your ceiling, connect to electricity, and complete the necessary patchwork afterward.
A bedroom remodel can be a fun project from start to finish. After all, we spend a lot of time in our personal spaces, so it’s an opportunity to renovate a room to your exact specifications.
Or if you’re a house hunter and have your eye on a home with bedrooms that could use some invigoration, know that SoFi offers home loans and mortgage refinancing.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
SoFi Mortgages: simple, smart, and so affordable.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
If repayment of your student loans has started or interest is accruing, it might be high time to school yourself on managing your school debt. Refinancing is one option.
Sure, it’s not the most fun way to occupy a weekend, but taking a close look at your student loans and understanding the ways to repay them may save you money and angst.
When Might It Be a Good Idea to Refinance Student Loans?
There are many reasons it may be a good idea to refinance your student loans, including lowering your interest rate, lowering your payment, and combining multiple loans into one. You can refinance both federal and private student loans, but refinancing federal loans with a private lender will forfeit your eligibility for federal benefits and protections.
When It Would Save You Money
The main goal of refinancing with a private lender is to lower the interest rate on your student loans — federal and/or private — with one new loan with a new rate that pays off the existing loans.
When rates are low, refinancing student loans could make a lot of sense. How much could you save? This student loan refinancing calculator can be enlightening.
Refinancing could be a great choice for working graduates who have higher-interest Direct Unsubsidized Loans, graduate PLUS loans, and/or private loans.
Or, perhaps you need to lower your monthly payment to help save money right now. One way to do this is to refinance your student loans with a longer loan term. This will reduce your payment, but you may end up paying more in interest over the life of the loan due to the extended term. You could also lower your payment by qualifying for a lower interest rate, if you can, and keeping the term the same.
You Qualify for Refinancing
Your eligibility to refinance student loans depends on your financial history, employment, and monthly income vs. expenses. If you’ve spent time building your credit and have a stable job, you could qualify for the best student loan refinancing rates.
You can also consider applying for a student loan refinance with a cosigner. If your cosigner has a stronger credit profile than you or better debt-to-income ratio, you may be able to land a better rate on your refinance.
You can usually refinance student loans right after graduating, and as often as you want after that. Most lenders charge no fees to refinance.
You Want to Remove a Cosigner
Some lenders allow a cosigner to be released from any repayment obligation when student loans are refinanced.
Principal borrowers applying for cosigner release typically have to demonstrate that they are able to handle the loan on their own by meeting certain minimum requirements.
You Want to Switch to Fixed Interest
If you have student loans with variable rates, you may want to consider refinancing to lock in a fixed rate before rates rise.
Then again, if you’re willing to take on a risk to potentially save on interest — and will be able to pay off your student loans quickly — you might consider switching from a fixed rate to a variable rate. A variable-rate loan typically starts with a rate that’s 1-2% lower than a comparable fixed-rate loan.
If you have federal student loans, refinancing them into a private student loan will eliminate the ability to participate in income-driven repayment plans, Public Service Loan Forgiveness, and federal deferment and forbearance.
If you are using these benefits or plan to, it’s not recommended to refinance your student loans. Instead, you could consider a federal student loan consolidation. This combines multiple loans into one, with the interest rate being the weighted average of the loans you are consolidating rounded up to the nearest one-eighth of a percent.
Want to see if refinancing could be right for you? We’ve created a quick quiz that might help.
IMPORTANT: The projections or other information generated by this quiz regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of offers.
The Takeaway
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
FAQ
When is it a good time to refinance student loans?
You can refinance your student loans at any time, but a good time to refinance is if you’re looking for a lower interest rate or lower monthly payment, and you’re not using or planning on using federal benefits. To qualify for the best rates, you’ll need a solid credit profile and a stable income. You can also consider refinancing your student loans with a cosigner.
Can refinancing student loans reduce the cost of your total debt?
Yes, refinancing your student loans can reduce the amount of interest you pay over the life of the loan. You can do this by lowering your interest rate (and keeping your loan term the same) and/or shortening your loan term.
What credit score do you need to refinance student loans?
The minimum credit score needed to refinance student loans varies from lender to lender, but FICO states that a “good” credit score is 670 or higher. To get the best student loan refinance rates, you’ll want to have a good credit score and low debt-to-income ratio. If you don’t meet those requirements, you may want to consider refinancing with a cosigner.
SoFi Student Loan Refinance Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FOREFEIT YOUR EILIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Buying a home is a major responsibility. If you’re unable to continue paying the mortgage on your house, what happens next? You’ve heard of foreclosure, which can result in losing your home and be financially damaging. But there’s another option called a deed in lieu of foreclosure, which may be less stressful than foreclosure, have less of a negative impact on a credit report, and may be faster to complete.
Note: SoFi does not offer a Deed in Lieu at this time.
Here’s what you need to know about a deed in lieu of foreclosure, and when it might be an option to consider.
What Is a Deed in Lieu of Foreclosure?
Where a foreclosure may involve the court and a lengthy process, the alternative, a deed in lieu of foreclosure, is fairly simple.
If your lender agrees, you hand over the deed to them and the lender releases the lien on the property. You may be released from any balance you owed on the mortgage (however, there may be exceptions if you owe more than the home is worth).
And while a deed in lieu will appear on your credit report, it doesn’t have as severe an impact as a foreclosure.
The lender might even offer you financial assistance to spruce up the home to make it more sellable.
Your lender may only consider a deed in lieu of foreclosure in certain situations.
For instance, the lender might require that you first put your home on the market as a short sale or explore a loan modification.
If you’re completely unable to pay, start by contacting your lender and asking if a deed in lieu of foreclosure is an option. If it is, you’ll be given an application and asked for documents proving your inability to pay the mortgage. The documents will show your income and expenses, as well as bank account balances.
This process can take 30 days or more.
If your application is approved, you may want a real estate lawyer to review it to help you understand whether you are fully released from the financial obligations tied to the mortgage. For example, if the lender sells the home for less than the remaining mortgage balance, are you responsible for that deficiency?
Once you are comfortable with the title-transferring agreement, you and the lender will sign it, and it will be notarized and recorded in public records.
At this point, you will be notified how long you have to leave the home.
When to Consider a Deed in Lieu
One instance when a deed in lieu may be a good idea is if you owe more on your home than it is worth, as long as the agreement stipulates that you won’t owe the difference between the value of the home and what you owe.
If you are unable to continue paying your mortgage, it’s important to know that a foreclosure will leave a nasty mark on your credit report for seven years and make it difficult or impossible for you to take out another mortgage for years.
A deed in lieu will appear on your credit report, but it may not have the same lasting effect. Your credit score will drop, but long term, it may not affect your ability to take out a loan.
Benefits of a Deed in Lieu
There are advantages for both the borrower and the lender when it comes to a deed in lieu. For both, the big benefit is not having to go through the long and expensive process of foreclosure.
Because a deed in lieu is an agreement between you and the lender and not an order from a court, you may have a little more flexibility in terms of when you vacate the property.
With foreclosure, you are sometimes forced to vacate within days by local law enforcement. With a deed in lieu, you may even be able to work out an arrangement where you rent the property back for a period. The lender gets a little rent money and you have more time to figure out your next move.
In addition, this option is more private than a foreclosure.
From the lender’s perspective, the benefits of a deed in lieu include avoiding litigation and court time.
Drawbacks of a Deed in Lieu
There are disadvantages as well. A deed in lieu will appear on your credit report, even if it’s not as damaging as a foreclosure. Plus, it may still be difficult to get another mortgage in subsequent years.
It may still be difficult to get another mortgage in subsequent years.
If you owe more than your home is worth, you may still be on the hook for the difference between the appraised property value and what you owe.
You may be denied a deed in lieu if there are other liens or tax judgments on the property, or if the home is in bad condition and requires maintenance to sell.
The best thing to do, if at all possible, is to avoid getting into a situation where you can’t afford to pay your mortgage. If you’re having short-term financial issues, talk to your lender immediately to see if there is the possibility of delaying a few months’ payment or setting up a loan modification so you can work to pay off your outstanding debt.
Typically, the lender will want to help you; it’s easier to work out an agreement now than several months down the road, when you haven’t paid your mortgage at all and are facing foreclosure.
If you do end up in a situation where you are unable to continue paying your mortgage and you aren’t offered options, consider a deed in lieu of foreclosure as a faster and easier solution than a foreclosure.
If you’re just starting to consider buying a home, create a budget and calculate how much in mortgage payments you can afford each month. Don’t forget to calculate insurance and interest as well. Make sure that you won’t be stretched thin financially.
If you can’t pay your mortgage and you’re unable to get a short sale or loan modification approved, a deed in lieu of foreclosure may be the best option. Rather than go through the foreclosure process, a deed in lieu allows a borrower to sign a property over to the lender.
Your credit will take a significant hit, though not as bad as with a foreclosure.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
The short answer to the question, “Can I use a credit card in another country?” is yes, you can. The longer answer? Take precautions to ensure you don’t get hit with high foreign transaction fees. You also want to avoid having your card declined because the issuer didn’t know you were traveling and thinks it’s a fraudulent charge.
We’ll review those scenarios and more as we share smart strategies to use your credit card internationally without any hitches or way high fees. Let’s look into:
• Whether you can use your credit card abroad
• How to safely use a credit card overseas
• The cost of using a credit card when traveling
• The pros and cons on using plastic when in another country
• Alternatives to using a credit card when abroad.
Here’s what you need to know.
Can You Use Your Credit Card Abroad?
Whether you’re planning a quick weekend trip to Cabo or going to college abroad, using your credit card can be a super convenient way to pay for day-to-day expenses. It’s also more secure than carrying cash. After all, if you lose paper money, it’s gone… but if you lose your credit card, you can just call the issuer and let them know.
That said, you probably don’t want to rely solely on a single credit card as your only source of funds. Credit cards can be lost or stolen. Additionally, not all vendors will necessarily accept credit cards, and some may not accept the specific type you have. Generally speaking, Visa and MasterCard are more widely accepted than Discover or American Express. Worth noting, though: Both of these latter credit card companies are working hard to increase their overseas presence.
You’ll also want to be aware that many credit cards come with foreign transaction fees that can stack up quickly, even if they appear small. For instance, a 3% foreign transaction fee means that if you put $500 on your credit card during your trip, you’ll spend an additional $15 just for the privilege of using the card. Using a credit card responsibly means being aware of these charges and deciding when and if they are worth it.
Finally, keep in mind that you’ll want to call your card issuer ahead of time to put a travel advisory on the card. That way, they won’t automatically flag a transaction thousands of miles away from home as fraudulent — which could lead to an inconvenient and frustrating declined transaction.
Is It Safe to Use Your Credit Card Abroad?
As long as you’re making purchases from reputable vendors, it is safe to use your credit card abroad. Determining who’s a reputable vendor and who isn’t can be challenging when traveling, and credit card scams can be rampant wherever you go. And it’s always possible, whether you’re traveling or at home, to have your credit card information stolen and used fraudulently. (For example, some criminals steal private information by installing credit-card skimmers on self-service gas pumps.)
How to protect yourself? The best way to ensure your credit card is still secure is to regularly check your transactions and ensure they’re all legitimate. If you see one you don’t recognize, immediately contact your credit card issuer so they can remove the charge and issue you a new card.
Of course, while traveling internationally, it may be difficult to have that new card delivered to you in time to be useful. This is why it’s so important to have some backup funding with you, including some local currency and an additional credit card.
What Are the Costs of Using a Credit Card Overseas?
Using a credit card overseas can get expensive awfully quickly. You may run into hidden costs depending on how you use the credit card. Here are a few to look out for:
• Regular foreign transaction fees These charges are levied by credit card companies simply for your conducting a transaction with a foreign vendor.
• Cash withdrawal fees In some cases, you may be able to use your credit card to access cash money from an ATM. Doing so may incur additional ATM fees on top of the foreign transaction fee. You may even be hit by a third fee from the ATM provider.
• Dynamic currency conversion This is a service that some card issuers offer, which allows you to see what the cost will be in your home currency. Although this can make you feel more secure when it comes to knowing how much something really costs, you may pay for the privilege of seeing that information ahead of time. If you can, choose to have the price listed in the local currency. If you really need to know what that translates to in US dollars (or whatever your home currency is), look it up on your phone. There are plenty of sites and apps that will do the math for you.
• Interest As with any credit card purchase, if you let a revolving balance rack up on your card, you could be subject to expensive interest charges. The best practice is to pay off your card in full, each and every month.
The good news: It’s totally possible to avoid foreign transaction fees by opting for a card that simply doesn’t charge them. You can also skip dynamic currency conversion and decide not to use the card to withdraw cash from an ATM. These moves will help whittle down your fees.
As mentioned above, using credit cards to withdraw cash overseas is possible, but it might not be the smartest option. Along with any foreign transaction fees, you could also be charged cash withdrawal fees, ATM fees, and more.
That said, it is a good idea to have some local currency with you for your journey. So if you aren’t going to use your credit card to withdraw it, what are your options? While ordering foreign currency will almost certainly come at some cost, there are ways to lower the associated fees and save as much as possible.
For example, you may be able to order foreign currency from your regular domestic bank, which could come with fewer charges than withdrawing from an overseas ATM using a credit card. You may also see currency exchange services available at the airport, but these can be pricey in their own right.
Another good option: Withdraw money from a foreign ATM — but using the right kind of card. Some banks offer debit or prepaid cards with no foreign transaction fees, and may even throw in ATM fee reimbursement so you truly don’t have to worry about any additional fees. Of course, you’ll have to put in the effort ahead of time to ensure your bank offers a product like this or even to open a new bank account for this purpose.
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Is It Better to Pay and Withdraw Money in Local Currency?
As mentioned above, one of the costliest parts of overseas travel is dynamic currency conversion — the service that lets you choose to pay in your own currency at a point-of-sale transaction. Dynamic currency conversion comes at an additional cost, and that’s not counting any other foreign transaction fees you might be hit with.
All of which is to say: If you can, paying in local currency is almost always the better option. (And, of course, with cash, you won’t face any additional charges other than what you already paid to acquire the currency.)
Pros and Cons of Using a Credit Card Overseas
As with any financial decision, using a credit card overseas has both pros and cons to consider. Here are a few to mull over.
Pros of using a credit card overseas:
• More secure than cash, which can be easily lost
• Easy to use and less bulky than carrying around bills and coins
• Some cards offer special travel perks, such as the ability to earn miles as a reward, which can make travel easier and cheaper
Now, let’s look at the other side: the cons of using a credit card when you travel outside the U.S.
• Can come with costly foreign transaction fees, some of which may be hidden
• Not all overseas vendors accept credit cards (or all types of credit cards)
• Could be declined if you don’t put a travel advisory on your card
For those who like an at-a-glance approach to seeing the benefits and downsides, take a look at this chart summarizing both sides of charging purchases with a credit card when on foreign soil:
Pros
Cons
More secure than cash
May trigger costly foreign transaction
Easy to use and less bulky to carry
Not all overseas vendors accept credit cards
May offer special travel perks, like earning travel miles
Could be declined if you don’t add a travel advisory to your account
Alternatives to Using Credit Cards
If you decide you don’t want to use credit cards overseas, you can always rely on cash. Ideally, though, you’ll also want to carry a debit card connected to your checking account that allows you to access more cash in case you overrun your original budget or need money in an emergency.
You may also be able to pay for certain goods and services using an online P2P payment system like PayPal or Venmo, or purchase gift cards for specific vendors ahead of time.
Although they’re slightly outdated, traveler’s checks are still available, though relatively rare compared to their heyday. They offer another relatively secure way to pay for goods and services overseas.
Tips for When You Travel With a Credit Card
For the best success when traveling with a credit card, follow these tips:
• Choose a card that’s widely accepted worldwide.
• Shop around for a card that doesn’t assess foreign transaction fees.
• Call your card issuer ahead of time to tell them you’ll be traveling. This will help you avoid having a transaction declined while you’re abroad.
• It’s a good idea to travel with some backup funds, whether that means cash, a foreign-transaction-fee-free debit card, or another credit card.
The Takeaway
Whether you’re studying abroad or just enjoying a foreign getaway, it’s possible to use a credit card in another country. Yet, if you’re not careful, you may run into costly foreign transaction fees that can stack up fast. It’s a good idea to do your homework ahead of time to avoid any billing-statement sticker shock or regret. With a little planning, you can enjoy your travels without the cloud of growing credit-card debt hanging over your head.
Looking for a bank that doesn’t charge foreign transaction fees? SoFi has you covered, wherever you are. Sign up with direct deposit, and you’ll get both Checking and Savings accounts with one easy application. Better yet, you can earn a competitive APY.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 3.80% APY on SoFi Checking and Savings.
FAQ
How do I pay internationally with a credit card?
The same way you do at home: You might swipe, dip, or tap the card at the point of sale. Use a card that doesn’t charge foreign transaction fees to minimize charges as you travel.
Is it better to use a debit or credit card abroad?
Whichever option offers lower — ideally, zero — foreign transaction fees is the best bet. Keep in mind that withdrawing money from an ATM using a credit card can be a very expensive option for acquiring foreign currency.
Can I withdraw money from my credit card abroad?
You can, but that doesn’t necessarily mean you should. Many credit cards charge foreign transaction fees as well as cash withdrawal fees that can really add up. Look for a bank account that offers a no-foreign-transaction-fee debit card, or order foreign currency ahead of time from your local bank.
Photo credit: iStock/martin-dm
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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning 3.80% APY, we encourage you to check your APY Details page the day after your Eligible Direct Deposit arrives. If your APY is not showing as 3.80%, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning 3.80% APY from the date you contact SoFi for the rest of the current 30-day Evaluation Period. You will also be eligible for 3.80% APY on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi members with Eligible Direct Deposit are eligible for other SoFi Plus benefits.
As an alternative to Direct Deposit, SoFi members with Qualifying Deposits can earn 3.80% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Eligible Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving an Eligible Direct Deposit or receipt of $5,000 in Qualifying Deposits to your account, you will begin earning 3.80% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Eligible Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
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