Travel credit cards are fantastic tools for earning rewards and saving money while exploring the world. However, you need to use them smartly to make the most of them. This post will provide practical tips on using your travel credit card like a pro, helping you earn maximum rewards, save on fees, and keep your finances in order.
Understand Your Travel Credit Card Benefits
Here are some tips for the travel credit card which will help you to use it like a pro:
- Look for Sign-up Bonuses
When you first apply for a travel credit card, many offer generous sign-up incentives. You must spend a particular amount within a set time, usually the first three months, to qualify for these benefits. To fulfil the criterion and receive those extra points or miles, schedule significant expenditures (such as airline tickets or hotel stays) within this time.
- Keep an Eye on Annual Fees
Although many travel credit cards have an annual charge, the benefits frequently surpass the expense if used sensibly. Determine if the travel credits, perks, and prizes the card offers outweigh the cost. You might want to think twice before upgrading to a no-fee card if you aren’t making the most of the benefits.
- Utilize Relaxation on Foreign Transaction Fees
When traveling abroad, foreign transaction fees can add up quickly. Fortunately, many travel credit cards waive these fees, typically ranging from 1% to 3% of each international purchase. By using a travel card that offers this benefit, you can enjoy stress-free spending without worrying about additional charges on foreign transactions. Before your trip, ensure your card has this feature to maximize savings while you explore new destinations.
- Relax with Lounge Benefits
Take advantage of any free airport lounge access your travel credit card offers. Lounges offer complimentary food, Wi-Fi, comfy places to unwind, and occasionally even showers. As a result, long layovers may become less stressful and more enjoyable.
- Pay Your Balance Promptly
Managing your account wisely is key to avoiding debt and interest charges, which can negate the savings from using travel card rewards.
Set payment reminders and/or enrol in autopay to pay your monthly statement balance in full and on time. Carrying debt month-to-month accrues costly interest fees that offset rewards savings over time. If you cannot pay in full, at minimum, make on-time payments to avoid late fees or penalty rate hikes.
- Evaluate the redemption options
The flexibility and potential values when redeeming points and miles differ widely across travel cards. Study the options – cash back, statement credits, airline transfers, hotel points, etc. Look at redemption values from third-party award travel blogs to understand the relative worth of each program.
- Keep Backup Payment Options
While your travel credit card should be your go-to for most purchases, it’s wise to carry a backup payment method. Some places might not accept your card, and in the rare case of a card getting lost or stolen, you’ll need an alternative to cover your expenses.
- Enable Fraud Alerts
When you travel, your spending patterns may trigger fraud alerts, leading to temporary card holds. To avoid this, inform your card issuer about your travel plans beforehand. Additionally, fraud alerts can be enabled so you can be notified immediately of any suspicious activity.
- Higher Reward Rate on Travel & Hotel Bookings
Some travel credit cards offer elevated reward rates specifically for travel-related expenses such as airfare, hotels, or car rentals. Cards may provide 3X or 5X points on these categories, allowing you to earn rewards faster. Evaluate your spending patterns and choose a card that aligns with your travel and hotel booking needs to maximize your points or miles accumulation.
- Don’t let points expire
Before points or miles expire, check your account policies and make sure to use them. If you don’t have an immediate travel redemption in mind, redeem for gift cards or statement credits. Throwing away unused, expired points negates their value.
- Use Travel Insurance Benefits
Travel credit cards come with built-in travel insurance benefits, such as trip cancellation, baggage loss, or rental car coverage. Familiarise yourself with these perks before your trip, and always use your travel card for bookings to activate the coverage. This can save you a lot of money in case of unforeseen travel disruptions.
Conclusion
Travel credit cards can be powerful tools to earn rewards, save money, and enhance your travel experience. By understanding your card’s benefits, maximising rewards, and using it responsibly, you can become a pro at managing your travel credit card. Whether earning free flights or enjoying airport lounge access, the right strategies will help you travel smarter and more affordable.
By following these tips, you can ensure you’re getting the most out of your travel credit card while keeping your finances in check.
