It would be hard to imagine traveling without a credit card in the modern world. Traveling with a major credit card saves you from having to change out currencies, it allows you to book hotels and cars in advance and gives you access to plenty of travel rewards points. However, if you aren’t mindful of how you use your travel cards, any advantage they give you quickly disappears.
If you’re wondering how to make the most of your card when you travel, then pay attention to these three credit card travel tips care of the staff at Second City Advisors.
1. Don’t Carry a Balance
If you’re carrying a balance on your travel card, then you’re seriously negating the benefits that you get from the card, according to Penny Hoarder.
Travel rewards cards can have higher interest rates to balance out the travel benefit you get. The key to making this work so that you get to travel, hotel, and car rewards is to pay off your balance each month. In other words, treat your credit card like it’s a debit card.
Additionally, if you have a large outstanding balance on the cards you use when you travel, you have less money to spend on your trip. There are plenty of reasons to keep that balance paid down, that’s for sure.
2. Not Getting Travel Protection
Did you know that travel cards offer travel protection? According to The Points Guy, they do. These travel protections include benefits, like reimbursement for lost or delayed luggage. Some benefits kick in if you have to stay overnight at a location unexpectedly or even if you must go back home due to a medical emergency. Some cards even hook you up with travel insurance.
While most trips go relatively smoothly, it’s the ones that don’t that wind up costing you. Opting for a travel card that has these and other benefits ensures that when Murphy strikes, you’ll be ready. This counts as one of the primary reasons why Second City Advisors recommend shopping around for a good travel credit card.
3. Not Using It
Travel rewards cards offer some amazing benefits IF you use them. However, many people use cash when they travel instead of using their rewards card. This is a huge mistake. The more you use your card, the more credit card bonuses you get.
The same goes for using your card at home. If you already budget for what you’re spending your money on and if you already pay off your balance at the end of the month, then there is no reason to not use your card. It’ll rack up frequent flyer miles, hotel points, and other niceties that you can redeem once you’re on vacation.
You can even be savvy when you’re out with others. For example, if you and a group of friends go out, then have them pay you in cash. You can then pay the dinner bill with your card. Just be sure to use the cash they gave you to pay for dinner to pay off your card.
Conclusion
Most people plan on using their credit cards when they travel. Indeed, most travel rewards cards come with huge benefits, like insurance, frequent flyer miles, and other bonuses. The mistake that travelers make the most often is not taking advantage of all the rewards offered by their credit card companies, both when they’re on the road and at home