Similar to cars, credit cards are something that many adults have that are a lot of responsibility. If you want to keep your credit in good standing and have a positive experience as a credit card holder, you have to make sure you pay your bill on time, keep within your limit, avoid cash advances and more.
Although many people steer clear of getting a credit card because they are afraid of what it will do to their credit and finances if they fail to make payments regularly, should they decide to get a credit card at some point, they will find that there are several perks. They allow you to get the things you want without actually paying for them right away, build your credit and save on travel, which is one of the important benefits to those who like to get out of town whenever they can.
Check out this list of top Travel Credit Cards and discover the one that's perfect for your traveling needs.
Here are five unexpected ways a credit card can save you money on travel.
The great thing about credit cards is that they are safer than carrying around cash. When traveling abroad, not only may you find keeping track of your cash a hassle, but figuring out the exchange rates and how much you owe people for the things you purchase can also bring on confusion and stress. Using your credit card abroad can save you money because you don't have to pay the fees often associated with getting your money exchanged, which means you are getting a better exchange rate. Certain travel credit cards don't even charge foreign transaction fees, so you'll want to look into that as some require an annual fee and others do not. You can still exchange your cash, but it is best to carry around as little as possible.
Those who opt to drive to their destination instead of take a flight often rent cars for their journey. In some cases, this option can be much cheaper, but it can still cost you quite a bit because you will have to factor a number of things in, including how far you are driving, how much money you will spend on gas and insurance. Luckily, credit card companies offer their account holders the opportunity to save when they go to certain agencies they are partnered with a book their car rental. Depending on the time of year, the type of car and where you are traveling to, you may be able to save significantly.
When on vacation, you are going to dine out and enjoy entertainment of some sort, whether it is going to the movie, a live show or theme park. That is the fun part of traveling and exploring a place you haven't been to yet. When booking your travel, look at the special discounts your credit card company is offering for entertainment and dining in the city you are visiting. The combination of planning ahead and taking advantage of the discounts your credit card company offers can keep you from spending money you don't need to while you are actually on vacation.
If you're a frequent traveler, it is likely that you have paid for travel insurance at some point. It is also very likely that you've purchased this insurance through a third party and paid too much for it. Even if you haven't gotten travel insurance before, it may have been something you've considered, but decided against due to its cost. Before you go on your next trip, see if your credit card company offers travel insurance. If it is cheaper, then this is perfect because you get to save money and can put it towards another trip.
Whether you decide to drive your own car or rent one, you will have to pay for gas. Prices will vary from city to city and state to state, so you could be spending more than you want and are willing to in order to reach your destination. Before you hit the road, check your credit cards to see if one or more of them have cash back rewards for gas. Many credit card companies will offer at least 5% cash back. If you spend $100 on gas, you'll get $5 back. This may not seem like a lot, but this $5 back in your pocket that you can save or spend on something else.
What's your favorite credit card for travel rewards and benefits?