What makes a credit card good for travel
Four things matter, roughly in this order: forex markup (what you pay on overseas spends), airport lounge access, reward/mile rate on travel spends, and the annual fee versus the benefits you'll actually use. A card with great rewards but a 3.5% markup can cost more abroad than a plain card — which is why many travellers carry a rewards card and a zero-markup forex card. Pair this with our currency exchange guide and travel insurance guide, and stay safe with our travel safety guide.
Best for low/zero forex markup
- Scapia (Federal Bank): lifetime-free, 0% forex markup, travel rewards — a strong everyday-travel pick.
- IDFC FIRST WoW: FD-backed (easy to get, builds credit history), 0% forex markup.
- Niyo-style products: work like a card with near-wholesale rates (see the forex card guide).
These minimise the single biggest hidden cost of spending abroad.
How airport lounge access works
Most travel cards give lounge access via Priority Pass or the card network (Visa/Mastercard/Amex), split into domestic and international visit quotas. Check the exact number of free visits, whether guests are included, and any minimum-spend condition to keep the benefit active. Use the time saved to handle your onward transfer.
Put card lounge access to work with our airport guides for Delhi (DEL) and Dubai (DXB), which list lounge options and pay-per-use rates.
Matching the card to your travel
Occasional traveller: a lifetime-free zero-markup card (Scapia / IDFC WoW) is usually enough. Frequent flyer: a premium rewards card for lounges and miles, paired with a zero-markup forex card for actual spends. Building credit: an FD-backed card. Always check that the annual fee is justified by benefits you'll genuinely use, and remember overseas card spends count toward your ₹10 lakh/year LRS limit (20% TCS above it, refundable via ITR) — see the forex card guide.
Matching the card to the trip: for a one-off holiday, a card with zero or low forex markup and a few free lounge visits usually beats a high-fee premium card. Frequent flyers benefit from cards earning transferable miles and unlimited lounge access. Always clear the bill in full before the due date — interest wipes out any rewards — and tell your issuer your travel dates so foreign transactions aren't blocked.
Which card fits your trip? Three real scenarios
Once-or-twice-a-year holidaymaker: a card with zero or low (≤2%) forex markup and a few free lounge visits beats a high-annual-fee premium card you won't use enough. Frequent international flyer: a premium travel card earning transferable miles with unlimited lounge access pays for its fee through lounge and reward value. First-time or student traveller: a no-frills low-markup card (or a forex card) avoids fees while you build history — skip the premium tier until you travel often.
How to choose: a quick decision framework
Rank four factors for your travel pattern. 1) Forex markup — the biggest silent cost; under 2% is good, 0% is excellent. 2) Lounge access — how many free visits, domestic vs international, and whether guests are included. 3) Annual fee vs rewards — only worth it if your yearly spend earns more than the fee. 4) Acceptance and backup — carry a Visa and a Mastercard across two issuers so one block doesn't strand you. Always repay in full before the due date; interest erases any rewards, and notify the issuer of your travel dates so foreign transactions aren't flagged.
How to pick the right travel credit card (checklist)
- List how often you travel abroad and your typical overseas spend.
- Prioritise forex markup first — aim for 0–2% on international spends.
- Check lounge access: number of domestic vs international visits and guest rules.
- Compare reward/mile rate on travel spends and how easily points redeem.
- Weigh the annual fee against benefits you'll actually use (milestones, vouchers).
- If you spend a lot abroad, pair a rewards card with a zero-markup forex card.
- Confirm current fees and offers directly with the issuer before applying.
Cost summary
| Zero-markup card forex cost | ~0% |
|---|---|
| Premium rewards card forex markup | ~2–3.5% |
| Annual fee (entry travel cards) | Often LTF–₹500 |
| Annual fee (premium/super-premium) | ₹2,500–₹60,000+ |
| Lounge access | Included (capped visits) on most travel cards |
Common mistakes to avoid
- Chasing rewards while ignoring a 3.5% forex markup that wipes them out.
- Paying a high annual fee for benefits you won't use.
- Assuming all cards include unlimited lounge access (most cap visits).
- Forgetting overseas card spends count toward the ₹10 lakh TCS limit.
- Carrying only one card with no zero-markup backup for spends.
- Missing milestone-spend conditions that unlock the best benefits.
Alternatives compared
| Card type | Forex markup | Lounge/rewards | Best for |
|---|---|---|---|
| Scapia (Federal) | 0% | Travel rewards, LTF | Everyday travel value |
| IDFC FIRST WoW | 0% | FD-backed, rewards | Building credit / 0% forex |
| Axis Atlas | ~3.5% | High travel rewards + 8 intl lounges | Frequent flyers (pair w/ forex card) |
| HDFC Infinia/Regalia | ~2% | Premium rewards + lounges | High spenders |
| Amex Platinum Travel | Varies | Big welcome + lounges | Heavy spenders |
Final recommendation
If you travel abroad occasionally, a lifetime-free zero-markup card like Scapia or IDFC FIRST WoW covers you with no forex penalty. If you fly often and spend enough to use lounges and miles, choose a premium rewards card (Axis Atlas, HDFC Infinia, Amex Platinum) but pair it with a zero-markup forex card so the ~2–3.5% markup doesn't erode your rewards. Decide on forex markup first, then lounge access, then rewards, then fee. Card terms change frequently and overseas spends count toward your ₹10 lakh TCS limit — confirm current details with the issuer. This is general information, not personalised financial advice. Pair the right card with the rest of your money setup: a forex card for spending, currency exchange tips for cash, travel insurance for cover, a <a href="/travel-planning/best-travel-esim/">travel eSIM</a> to stay online, and the <a href="/tools/trip-budget-calculator/">trip budget calculator</a> — then browse our <a href="/visa-guides/">visa guides</a>, <a href="/trip-cost-guides/">trip cost guides</a> and <a href="/international-travel/">destination guides</a>.
Frequently asked questions
Which is the best travel credit card in India?
It depends on your travel frequency. Scapia and IDFC FIRST WoW are top zero-forex-markup picks; Axis Atlas, HDFC Infinia and Amex Platinum lead on lounge access and rewards. Frequent travellers often pair a rewards card with a zero-markup forex card.
Do travel credit cards charge a forex markup?
Most do — typically 2–3.5% on international spends. Zero-markup cards like Scapia and IDFC FIRST WoW are exceptions, which is why many travellers use them or a forex card for actual overseas spending.
How does airport lounge access work on credit cards?
Usually via Priority Pass or the card network, with separate domestic and international visit quotas. Check the number of free visits, guest rules and any minimum-spend condition.
Is a credit card or forex card better abroad?
A zero-markup forex card is usually cheaper for everyday spends; a rewards credit card is great for lounges, miles, hotels and emergencies. The ideal setup is both. See our forex card guide.
Do credit card spends abroad count toward TCS?
International card spends count toward your ₹10 lakh per-year LRS limit; above it, 20% TCS applies and is refundable via your income tax return. Confirm the current rules, which can change.
Are premium travel cards worth the annual fee?
Only if you use the benefits — lounge visits, milestone vouchers and miles. If you travel occasionally, a lifetime-free zero-markup card is usually the smarter choice.