Bank Comparison

The 3 Best Credit Cards to Use Abroad in Europe

So, you’re packing for a trip to Europe – or maybe you’re already dreaming about planning a full-on move abroad – and someone inevitably brings up travel money. “Just use your credit card abroad,” they say, as if that’s all there is to it. 

But, as you probably know, using a standard UK credit card overseas isn’t always straightforward. Suddenly, you’re up against exchange rate quirks and foreign transaction fees that seem to pop up out of nowhere. 

So, with so many options, and all those little fees waiting to catch you out, it pays to figure out which cards actually give you a fair deal when you spend abroad.

Can’t I Just Use My UK Card?

Let’s just get straight to it: most UK-issued credit cards are not designed for travel. If you use a standard UK credit card in Europe, there’s a good chance your card provider will hit you with a non-sterling cash fee and possibly a percentage on every purchase made in euros. 

Even withdrawing cash can be a mess, since overseas cash withdrawals typically attract a separate cash withdrawal fee, and often, interest from the day you take the money out. 

What Can I Do?

Fortunately, there are specialist travel credit cards out there, designed specifically for people who want to spend abroad without getting stung by unnecessary costs. If you know what to look for, and you’re prepared to dig into the details, you can find a card that won’t make your holiday or expat life more expensive than it needs to be.

What Makes a Credit Card Good for Travelling in Europe?

The best credit card deals for travel usually come down to three things:

No Foreign Transaction Fees

Most standard UK credit cards charge around 2.75% or 2.99% per transaction abroad. That’s nearly £3 on every £100 you spend in euros, which adds up quickly. The best cards for spending in Europe have no foreign transaction fees at all.

Fair Exchange Rates

Some card providers sneak in extra charges by offering “their” exchange rate instead of the official Mastercard or Visa rate. Specialist travel credit cards will use the standard network rate without mark-ups, so you don’t get short-changed.

Low or Zero Cash Withdrawal Fees

Withdrawing cash on a credit card is rarely ideal, but sometimes you don’t have a choice. A good card will either not charge extra for overseas cash withdrawals or at least be clear and fair about it. Some cards don’t charge a cash fee but will still start charging interest from the moment you take money out, so it’s worth checking the details.

It’s also worth checking if your card charges annual fees or works with Apple Pay and Google Pay – especially if you’re in a country where contactless is more common than cash.

Which Are the Best Credit Cards to Use in Europe Right Now?

To help you narrow it down, here’s what makes some of the best cards stand out and where to watch out for small print.

1. Halifax Clarity Credit Card

This one’s a bit of a favourite among frequent travellers and expats. The Halifax Clarity Credit Card keeps things simple – no fees on purchases made abroad, and you get the Mastercard exchange rate with no sneaky mark-ups. 

What we like about this is that if you withdraw cash abroad, there’s no extra Halifax fee. But you’ll still pay interest from the day you take out the money, so only use it if you have to and pay it back quickly. 

Also, there’s no annual fee, which is always a nice bonus. Most people find it’s accepted pretty much everywhere in Europe where Mastercard is taken, and it’s easy to manage from the Halifax app, which is handy if you’re on the move.

2. Barclaycard Rewards Credit Card

The Barclaycard Rewards Credit Card is a strong contender, too, especially if you’re not keen on paying interest on cash withdrawals. This card charges no foreign transaction fees on purchases or cash withdrawals, and – unusually – you won’t even be charged interest on cash withdrawals as long as you pay off your balance in full each month. That’s a rare deal.

There’s no annual fee, and you also earn cashback on your spending, which isn’t typical for travel cards. It runs on the Visa network, so it’s accepted in pretty much every European country.

3. Chase Debit Card (Current Account)

While it’s technically a debit card, the Chase account deserves a mention. The Chase debit card doesn’t charge for card payments or overseas cash withdrawals, and it offers the Visa exchange rate, which is about as fair as you’ll get. 

You get 1% cashback on purchases, and there are no account fees. Plus, it’s app-based, so it’s easy to manage on the go. If you’re worried about budgeting or don’t want to use credit at all, this one’s a strong alternative to a prepaid currency card.

Honourable Mentions

The Virgin Money Travel Credit Card and Santander Zero Credit Card also have no foreign transaction fees and are worth considering if you already bank with them or want another option. 

Just make sure that you always double-check the eligibility requirements and whether you need to open a new account.

What Fees Should You Watch Out for When Using a Card Abroad?

There are a few charges that can sneak up on you when you use your credit card abroad:

• Foreign Transaction Fees: This is charged by many standard UK credit cards – typically around 2.99% on each overseas purchase.

• Cash Withdrawal Fees: If you take money out at an ATM, your card provider might charge a fixed fee, a percentage, or both. Plus, interest often starts straight away.

• Non-Sterling Cash Fee: A sneaky extra charge for cash withdrawals in any currency other than pounds. You’ll find this on a lot of cards.

• Exchange Rate Margins: Some card providers add their own mark-up to the exchange rate, which isn’t always obvious at first glance.

If you’re offered the choice to pay in pounds or euros at a shop or ATM, always pick the local currency! Dynamic currency conversion almost always means a worse rate for you – not to mention all the extra fees added on top. 

How Upscore Can Help

Planning a weekend in Barcelona? A road trip through the Alps? Pickling the right card can make your life much easier. If you’re looking to keep your financial options open wherever you go, consider signing up for Upscore’s Finance Passport to take your credit history with you!

Sign Up for Upscore’s Finance Passport Today!

What Are The Cheapest Mortgage Rates in Europe?

If you’re an Australian thinking about buying property overseas, you might be surprised to learn that some of the cheapest mortgage rates in Europe are lower than what you’d find back home. 

European Mortgage Rates at a Glance

There’s no single “European” mortgage rate because it differs by country. The average mortgage interest rate across the euro area is roughly 3.30%. But individual countries deviate a lot from that average. 

To put these numbers in perspective, let’s compare them to Australia. The Reserve Bank of Australia’s cash rate climbed rapidly in 2022-2023, which pushed Australian mortgage rates to 5.84% in May 2025. So an interest rate around 3% – like you might get in Spain or France – sounds like a real bargain by comparison.

So, where specifically can an Australian find the cheapest mortgage rates in Europe? 

Spain

Based on the latest available data in July 2025, Spanish banks are offering home loans around 2.98%, the lowest in the Eurozone. In fact, Spain’s rates are about 0.4% below the Euro area average, which is a dramatic reversal from a few years ago. 

The European Central Bank’s rate hikes actually hit Spain less hard than elsewhere, and as the ECB began easing off, Spanish banks have been racing to undercut each other and attract borrowers.  So that gap – roughly half a percent – is significant for anyone taking out a large loan.

For foreign buyers, Spain is particularly welcoming. Non-resident investors (such as Australians) can access local mortgages fairly easily, which is part of Spain’s appeal. You will need a decent down payment, though – typically around 30% or more of the purchase price. But beyond that, Spanish banks are open to lending if you meet their criteria. 

France

France is another European country with impressively low mortgage rates, roughly 3.11% (excluding renegotiations) on average for new borrowers in May 2025. That places French mortgages among the cheapest in Europe, only slightly above Spain’s offerings!

French banks are usually known for their conservative lending (they have strict debt-to-income limits that are often around 35% maximum) and require borrowers to carry life insurance on the mortgage. 

So these practices keep default rates low and is how French lenders can offer attractive terms like this. The result is that even international buyers can secure a good deal, provided they meet the qualifications. 

There are even government-supported programs (like the Prêt à taux zéro, a zero-interest loan scheme for first-time buyers).

They’re a notch above Spain’s, but below places like Germany (about 3.6%). So if you’re comparing financing costs across borders, France is definitely a solid choice.

Just be prepared for meticulous paperwork in France and potentially slower loan approval times – the process can feel a bit bureaucratic, but those low interest rates are worth the wait.

Portugal

Portugal averages around 3.3%. So just a tad bit higher than France or Spain. That said, property prices in Portugal are traditionally a lot lower than in many Western European nations, so your loan can actually stretch further in terms of what you can buy. 

And getting a mortgage in Portugal is quite feasible. Like Spain, expect to put about 30% down, but interest rates and terms are still fairly competitive. 

Keep in mind, though, with inflation and global rate trends, nothing is exactly static – Euribor (the Euro Interbank Offered Rate) can also fluctuate, which affects adjustable-rate mortgages. 

That said, inflation looks to be trending down in Europe in 2025, so there’s some optimism that rates will remain affordable or even dip. 

Italy

Italy offers mortgages at roughly 3.18% interest, which is very much in line with France and Portugal. 

Banks here usually provide both fixed and variable rate options, and like elsewhere in Europe, long-term fixed rates are fairly popular (which gives you more stability in your payments). 

Italy’s rates being this low is mainly because of its economic growth and the influence of ECB policy over the years – Italian banks can borrow quite cheaply from European markets and pass that on to customers. They also face competition, especially in the north where a lot of other European lenders operate.

One interesting aspect is that Italy’s mortgage market caters well to niche buyers, like anyone who’s interested in renovation projects. There are products geared toward restoring historical homes, for example, which can come with favorable terms. 

As a foreign buyer, you will find Italian banks open to lending, but expect them to scrutinize your income and credit history thoroughly (perhaps even more so if you’re self-employed or have non-Italian income). 

You’ll likely need around 30-40% down for a non-resident mortgage here as well, similar to Spain and Portugal. Italy might not beat Spain in having the absolute lowest rate, but the difference is obviously tiny – only about 0.2 percentage points higher than Spain.

In practice, that’s really only a negligible gap on any typical loan. So, if Italy is where you’d love to own property, its financing cost shouldn’t stop you!

The United Kingdom

No discussion of European mortgages would be complete without the United Kingdom, given how common a target it is for Australian expats and investors. 

British mortgage rates have historically been low, but recently they’ve climbed higher than the Eurozone’s. The Bank of England reacted to high inflation by just raising its base rate sharply from 2022 onward, so that only pushed UK home loan rates up. 

As of mid-2025, average fixed mortgage rates in the UK are about 5.05% for well-qualified buyers with sizable deposits. You can clearly see that’s well above the ~3% club of Spain and France – some of the highest mortgage rates in Europe. 

Some UK borrowers on variable rates have faced even higher costs; the average standard variable rate (SVR) is over 7.48%, which is just insane compared to the rest of the continent. 

So, if considering London or another UK city, definitely keep in mind that financing there may not be as “cheap” as in other European countries.

Why the higher rates? In part because UK inflation was stubborn, which led to a higher base interest rate than the ECB’s for a time. Also, UK lenders price in different risks and often shorter fixed-rate periods (2 or 5 years are common), so repricing risk is higher. 

The good news is that by mid-2025, this trend has been reversing slightly. Even that 7.48% figure for the average standard variable rate is down from 8.18% a year ago. The Bank of England paused hikes and even cut rates slightly as inflation began easing. 

So mortgage lenders in turn have begun trimming their rates – you’ll see news of major banks like Nationwide and Halifax announcing small rate reductions on new loans. This means the peak might be over, and if you’re patient or able to lock in a deal soon, you might catch the UK on a downswing in rates. 

Still, for now, the UK doesn’t offer the cheapest mortgage rates in Europe by a long shot. It obviously remains as one of the most attractive property markets for many reasons (strong rental demand, familiarity, no currency exchange if you have GBP income, etc.), but purely on financing cost, the Eurozone has an edge.

How Upscore Can Help

Upscore’s Finance Passport lets you compile and present your background information in one convenient package, which makes it easier for overseas banks to evaluate your application. 

Get your free Upscore Finance Passport today!