When we go on holiday abroad, most of us take our credit cards with us as well as foreign currency.

But few of us are fully aware of just how much it costs to use a credit card overseas.

You’d be surprised at the way your bill is bumped up when you make foreign transactions or cash withdrawals.

Credit card exchange rates are based on the Visa and MasterCard wholesale rates, with an extra percentage usually added by the card issuers.

This varies from card to card but can be as much as 2.75%.

The charge will be applied to withdrawals made at foreign ATMs as well as when your card is used to pay for goods and services.

And don't forget that this charge is in addition to the set fees in place for withdrawing cash.

When choosing a credit card for using abroad, it’s also worth considering the other facilities on offer, such as the provision of a replacement card in the event of the loss or theft of your own.

Extra benefits may also include insurance for flight delay, lost and delayed luggage and personal injury.