Traveling abroad? Save money and maximize rewards with these 5 credit cards

Booking international travel can be costly, but with a little advanced planning, you can use a credit card to save money. One of the biggest mistakes credit cardholders make abroad is using a card that charges foreign transaction fees, which average 3% per purchase.

If you spend $1,000 on purchases during your overseas vacation, you'll pay $30 in fees that can easily be avoided by using a credit card with no foreign transaction fee. There are many financial steps to take before an international trip, and you can check off choosing the right credit card by considering one of the options mentioned below. (See our methodology for more information on how we choose the best cards.)

CNBC Select reviewed popular rewards credit cards to find the best options for people who are traveling outside the U.S., so you can maximize rewards and save on unnecessary fees. All of the cards mentioned below have no foreign transaction fees.

• Best overall: American Express® Gold Card
• Best for dining: Capital One Savor Cash Rewards Credit Card
• Best for hotels: Capital One VentureOne Rewards Credit Card
• Best for luxury travel: Chase Sapphire Reserve®
• Best for bad credit: Discover it® Secured Credit Card

Who's this for? If you love food and travel, the American Express Gold Card could be the ideal rewards card for you. Cardholders earn a competitive 4X points per dollar spent at restaurants and 4X points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Plus, earn 3X points on flights booked directly with airlines or on amextravel.com. Terms apply.

Cardholders also receive an annual dining credit of up to $120 ($10 in statement credits a month) at participating partners, including Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment is required. In addition, cardholders receive $120 ($10 a month) for Uber rides or for ordering Uber Eats.

This card has a $250 annual fee*, but it can be reduced to effectively $10 if you take advantage of both spending credits.

Cardholders can also benefit from Amex Offers, where they earn statement credits or bonus Membership Rewards® points at select retailers. Travelers will appreciate that there are no foreign transaction fees* as well as getting insurance for car rentals and damaged, lost or stolen luggage.

Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc. Please visit americanexpress.com/ benefits guide for more details.

*See rates and fees

Who's this for? Travelers who love to eat out can't go wrong carrying a dining rewards card. The Capital One Savor Cash Rewards Credit Card offers 4% cash back on dining purchases. This is one of the highest rewards rates on dining available, and Capital One classifies dining as restaurants, cafes, bars, lounges, fast-food chains and bakeries. Plus, you can enjoy foodie-centric perks, such as exclusive access to premium reservations with OpenTable. And if you're dining overseas, this card doesn't charge foreign transaction fees.

You can also earn 4% cash back on entertainment spending, whether you're buying movie tickets, taking a family trip to the zoo or spending the evening bowling with friends.

Cardholders benefit from exclusive access to dining, sports and entertainment events. Beyond dining and entertainment perks, you will also earn 3% cash back at grocery stores and 1% on all other purchases.

This card comes with a $95 annual fee, but it can be offset by the cash back you earn.

Who's this for? Anyone looking to book hotel rooms should consider the Capital One VentureOne Rewards Credit Card with its impressive offer of 5X miles per dollar on hotels and rental cars booked through Capital One Travel. Cardmembers can earn unlimited 1.25X miles on all other purchases, making it a solid choice for everyday use. The card has no annual fee and charges no foreign transaction fees.

Another perk is the intro 0% APR period, which lasts for 15 months on purchases (after, 19.74% - 29.74% variable APR). This can come in handy if you want to pay for a vacation over the course of a year and avoid interest charges. There is a 3% fee on the amounts transferred within the first 15 months

The Capital One VentureOne Rewards Credit Card offers new users a strong welcome bonus: 20,000 bonus miles after they spend $500 on purchases within three months from account opening. You can redeem miles for past travel expenses, which is essentially a statement credit. Or you can book new travel reservations through the Capital One Rewards Center.

Additionally, with this card, it's possible to transfer your miles to any of Capital One's partner airlines, including Emirates Skywards, Air Canada and Qantas. (Read how to make the most of your airline miles.)

Who's this for? The Chase Sapphire Reserve is geared toward foodies and frequent travelers who are looking for luxurious perks, such as annual travel credits, airport lounge access and complimentary hotel room upgrades. You can take advantage of an annual $300 travel credit, which can cover everything from airfare and hotels, to parking and tolls.

As you spend on the card, you will earn:

• 10X points per dollar spent on hotels and car rentals when you purchase travel through Chase Ultimate Rewards^® after the first $300 is spent on travel purchases annually
• 10X points per dollar spent on Chase Dining purchases with Ultimate Rewards®
• 5X points per dollar spent on flights through Chase Ultimate Rewards® after the first $300 is spent on travel purchases annually
• 3X points per dollar spent on travel worldwide after the first $300 is spent on travel purchases annually
• 3X points per dollar spent on dining at restaurants, including eligible delivery services, takeout and dining out
• 1X points per dollar spent on all other purchases

Points are worth 50% more when redeemed for travel via Chase Ultimate Rewards®. For example, 80,000 points are worth $1,200 redeemed toward airfare, hotels, car rentals and cruises when you redeem through Chase Ultimate Rewards. This perk is a great way to get the most value for your rewards.

In addition, Chase recently added new Lyft perks, including 10X points on Lyft rides through March 31, 2025, when you use your Sapphire Reserve.

While this card has a robust rewards program, it also has a steep $550 annual fee. All the card's added credits and benefits provided by Chase can help offset the cost. The $300 annual travel credit effectively reduces the annual fee to a more manageable $250. Cardholders can take advantage of a Priority Pass™ Select membership that has a value of about $429, as well as Global Entry or TSA PreCheck application fee credit of up to $100 every four years.

Who's this for? If you have no credit history or bad credit (scores below 580), a secured card may be your best option. The Discover it® Secured Credit Card is a well-rounded secured card that offers many benefits that are typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Cardholders earn a competitive 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter, then 1%. Plus, you can earn unlimited 1% cash back on all other purchases automatically. The welcome bonus is also unique: For new card members in the first year only, Discover will automatically match all the cash back they've earned at the end of their first year. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

This card requires a $200 security deposit, which is fairly standard for secured credit cards. It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back). Starting at seven months from account opening, Discover will automatically start to review your credit card account to see if they can transition you to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you'll qualify for an unsecured credit card.

• What's the best credit card for international travel?
• How to choose the best credit card for international travel
• Do I need to notify my credit card issuer if I'm traveling out of the country?
• What is a foreign transaction fee?

CNBC Select ranked the American Express Gold Card as the best credit card for traveling internationally. It has no foreign transaction fees (see rates and fees), has generous bonus spending categories and comes with a range of travel insurance benefits.

Depending on what your travel needs and wants are, you may be better off with a card that has a more specific set of perks. For example, the Chase Sapphire Reserve card is a premium credit card with luxury benefits such as airport lounge access (including Chase Sapphire Lounges), a TSA PreCheck or Global Entry application fee credit and 10X points per dollar spent on hotels and car rentals when you purchase travel through Chase Ultimate Rewards^® (after the first $300 is spent on travel purchases annually).

Choosing the right credit card for your travels is a highly personal choice because, unless you're traveling full-time, you'll probably be using the card more within the U.S. than outside of it. Make sure you're getting a card that earns the most rewards for the types of purchases you frequently make. And focus choose a rewards program that you'll find the most useful.

That said, there are a few boxes any credit card should check if you're going to use it for traveling out of the country. Be sure the card charges a $0 foreign transaction fee, so you don't get stuck paying extra for every purchase. It's also important to consider what payment networks are most widely accepted internationally. Visa and Mastercard are usually accepted anywhere you can pay with a card. So if you want to use a Discover or Amex card abroad, you may want to bring a Visa or Mastercard along as well, just to be safe.

You generally aren't required to let your credit card issuer know when you'll be traveling out of the country. However, it's a good habit to practice and can help you avoid a situation where your card is declined for suspicious activity. Some card issues allow you to notify them online, including when and where you'll be traveling. If you aren't able to submit a travel notification online, you'll have to call the number on the back of your card.

Certain credit cards charge an additional fee for purchases you make in a foreign currency. These transactions are typically the ones you make we you're traveling abroad, but they can also apply to online purchases you make in a currency other than U.S. dollars. Foreign transaction fees are charged as a percentage of the total purchase amount and are usually around 3%. That may not seem like a lot but it can add up quickly, which is why we recommend always using a credit card with no foreign transaction fees.

Traveling internationally can sometimes be more expensive, and more complicated than domestic travel. However, the right credit card can help alleviate some of these problems.

You won't need to pay excessive exchange fees when using a credit card with no foreign transaction fees, simply swipe your card and the conversion into U.S. dollars is done for you — with no additional fees. And you can earn valuable credit card rewards to use for your next adventure.

But before you apply for your next credit card, be sure to check your credit score to ensure it's as solid as possible. Additionally, be sure your travel budget is well-planned out, as you don't want to come home to a mountain of debt.

To determine which cards will put the most money back in your pocket, Select evaluated 127 popular rewards credit cards offered by major banks, financial companies and credit unions that allow anyone to join. We compared each card on a range of features, including travel rewards (points and miles), annual fee, welcome bonus, introductory and standard APR, one-time perks, annual perks, redemption rates, as well as factors such as required credit and customer reviews when available.

Select teamed up with location intelligence firm Esri. The company's data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri's data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

We then estimated how much the average consumer would redeem over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net the annual fee.

It's important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)

Our final picks are weighted heavily toward the highest five-year returns, since it's generally wise to hold onto a credit card for years. This method also avoids giving an unfair advantage to cards with large welcome bonuses.

While the five-year estimates we've included are derived from a budget similar to the average American's spending, you may earn a higher or lower return depending on your travel habits.

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For rates and fees of the Discover it® Secured Credit Card, click here.

For rates and fees of the Amex Gold Card, click here.