Why we recommend it: Most credit cards have foreign transaction fees that add 1 to 3 percent to every transaction made abroad. If you plan to swipe often or for big ticket items, those fees quickly add up. The Capital One Platinum Prestige Card is a great choice for travelers, featuring no-hassle perks and no annual fee. Capital One is the only major issuer that doesn’t charge foreign transaction fees and you'll see a few Capital One cards on this list. In addition to no foreign transaction fees, the Platinum Prestige card offers 0 percent interest until September 2012 on balance transfers and purchases, so you can save money on interest charges if you have a large balance after vacation. Plus, the interest rate resets to a low 10.9 percent APR, which makes its it an all-around good credit card for everyday spending at home as well as your go-to credit card for world travel.
Drawbacks: You need an excellent credit score to qualify for this credit card.