Summer is the perfect time to plan a vacation, especially if you’ve been working hard all year. But when it comes to booking travel, there are many factors that go into paying for your trip. And if you’re not careful, you’ll end up paying more than expected. Learning how credit cards work can provide you with all the right tools to plan your summer travel.
Understanding how credit cards work can be the best way to plan your summer travel
Learning how credit cards work can be a great way to plan for summer travel. Whether you’re booking flights or renting a car, using credit cards will help you budget and save money on your trip.
Budgeting is easier using credit cards, since credit cards can help provide an accurate picture of how much money you spend on travel expenses. It’s easy to forget what you’re spending money on. Credit card statements keep track of all charges so they’re easily accessible later on.
Credit cards also provide rewards programs that earn points toward free flights, hotel stays, gift cards or other perks such as no foreign transaction fees when traveling abroad. Oftentimes, airlines are directly linked to credit card rewards programs. When purchasing tickets you’ll earn miles and each purchase goes towards earning tier levels.
Find rewards cards that give you cash back, miles, and more.
If you’re a frequent traveler who wants to earn rewards points on your purchases, credit cards are an excellent option. Rewards cards offer a wide variety of options and benefits. Some reward cards offer cash back, others give travel miles, and others provide discounts on travel expenses such as flights or hotels.
If you’re looking for a rewards card that will help you save money while traveling this summer, consider one with no annual fee and low interest rates. Before applying for a credit card, check out how many points or miles each dollar earns you.
Research annual fees, interest rates and other terms before signing up for a new credit card.
Before you sign up for a new credit card, it’s important to research the annual fee and interest rate that comes with the card. Most banks charge annual credit card fees. These fees can range from $20 to nearly $1000 per year, depending on what type of card you have and how much money you’ve spent with them in the past 12 months.
A credit card’s interest rate is another important factor when considering whether or not it’s right for your wallet. The higher this number is (in comparison to other rates), the more money will be taken out of your bank account each month as interest charges if you don’t pay off your balance in full each month.
You get more protections and benefits with a credit card than with a debit card.
If your credit card is stolen or lost while traveling, it’s much easier to replace the funds on a credit card than on a debit card.
Credit cards also offer some additional protections that are helpful when traveling:
- If the airline loses your luggage and its contents, the airline may refund you for the value of your luggage and/or contents within it (clothes, personal items, etc.). Again, paying for your checked luggage (and even buying the luggage itself) with a credit card makes it easy to backtrack how much these items all cost.
- Credit cards provide greater protection if something otherwise goes wrong during an international trip–for example, if someone steals from you or damages property while staying at a hotel. In these situations where local law enforcement isn’t able to help out much (or not at all), having insurance through major banks can be very helpful in getting reimbursed for these expenses.
Credit cards can help you keep track of your spending.
Using your credit cards is a convenient way to keep track of your spending and stay on budget. You can set up alerts that notify you when you reach a certain spending limit. This will help avoid overspending without having to constantly check the balance in your account.
Credit cards also allow users to set up automatic payments for recurring bills such as utilities or rent, which is helpful if you don’t have enough cash on hand in order to pay them all at once. Finally, using credit cards for things like meals out at restaurants or buying souvenirs can help ensure that you won’t run out of money by the end of summer vacation–and then find yourself stuck with no way home!
When you’re planning a summer trip, it’s important to make sure your finances are in order.
As you plan your summer vacation, it’s important to make sure your finances are in order. To help with that, here are some tips:
- Save money for your vacation. You can use cash or an automatic savings account to save up for the trip–and if you use a credit card, pay off the balance in full each month so there aren’t any interest charges on top of what you already spent.
- Set aside funds for unexpected expenses while traveling (like flight delays). It’s also wise to keep some extra cash on hand just in case something unexpected happens during travel.
Next step: plan that dream vacation!
The summer is soon approaching, which means the summer travel season will be in full effect. Whether you’re planning to travel locally or across the globe, utilizing credit cards will undoubtedly allow you to make the most of your money when it comes to your travel budget and expenses.
About the Writer: Alexandra Wilson has been a freelance writer since 2019, covering topics ranging from personal finance to entertainment to travel. She enjoys writing pieces that inspire others. Alexandra is based in New York State.