Traveling is a dream for many, but hefty expenses can prevent them from visiting ideal destinations. But, did you know that your credit card can be a great option for you to help save money on your next trip? In this detailed guide, we will discuss different ways your credit card will save money so you can enjoy an incredible traveling experience without breaking the bank.
Ways to Save Money on Traveling with Credit Cards
Take Advantage of Sign-Up Bonuses
When applying for a new credit card, check the credit card provider for sign-up bonuses they offer. Credit card companies often provide attractive bonuses to new cardholders who meet specific spending requirements within the initial months of opening an account.
To leverage sign-up bonuses effectively, plan significant purchases or expenses around the time of acquiring the card. However, remember to stay within your budget and avoid unnecessary spending just to meet the bonus requirements. Responsible financial management is crucial even when aiming for lucrative sign-up rewards.
Travel Insurance Coverage
Traveling involves some inherent risks, and unexpected events may disrupt your plans. Here’s where your credit card’s travel insurance coverage can rescue you. Many premium credit cards offer complimentary travel insurance, which may include:
Trip Cancellation Insurance: Reimburses non-refundable travel expenses if you have to cancel your trip due to covered reasons, such as illness or severe weather.
Baggage Delay Coverage: Provides compensation for essential items and clothing in case your baggage is delayed by the airline.
Travel Medical Insurance: Covers emergency medical expenses while traveling abroad, giving you peace of mind during your journeys.
Rental Car Collision Insurance: Offers coverage for collision damage and theft when you rent a car, potentially saving you money on additional insurance fees.
Be sure to review the terms and coverage limits of your credit card’s insurance policy to understand the extent of protection provided.
Foreign Transaction Fee Waivers
Traditional payment methods such as cash or debit cards can incur foreign transaction fees, adding unnecessary costs to your travels. However, certain credit cards offer the perk of waiving foreign transaction fees, making them an ideal choice for international jetsetters.
You can prevent the extra charges that usually come with currency conversions by using a credit card with no foreign transaction fees. Furthermore, credit cards often provide more favorable exchange rates than currency exchange agents, ensuring you get more value for your money while traveling.
Before flying for your international travel, confirm that your credit card does not charge foreign transaction fees and inform your credit card company of your travel plans to prevent any potential issues.
Access to Airport Lounges
Airports can be hectic and stressful, especially during layovers. But with the right credit card, you may enjoy access to airport lounges that offer a haven of comfort and relaxation. Lounge benefits often include:
- Complimentary Refreshments
- Wi-Fi Access
- Comfortable Seating
- Quiet and Peaceful Environment
Some premium credit cards offer complimentary lounge access, while others may require you to enroll in specific programs or pay a membership fee. Nevertheless, the relaxation and convenience of airport lounges can enhance your overall travel experience.
Cashback on Travel Purchases
If you don’t want to redeem rewards points or miles, consider a credit card that offers cashback on travel purchases. Flightcentre MasterCard is one of the best credit cards that offers cashback benefits and many other features to help you reduce traveling expenses. These cards help you to earn a specific percentage of your spending back as cash rewards, which can then be used to offset your travel expenses.
Cashback credit cards usually come with rewards programs, making them an excellent choice for those who prefer a hassle-free approach to earning rewards. You should use your card for travel expenses, and watch as your cashback accumulates. Many credit cards also offer special promotions and increased cashback rates for specific categories, such as hotels, airlines, or travel agencies.
Price Protection and Purchase Guarantees
Prices usually change when booking flights, accommodation, or other travel-related expenses. However, some credit cards offer price protection benefits. This means if you find a lower price for the same item or service you purchased with your credit card, you can claim a refund for the difference.
By taking advantage of price protection, you can book your travel arrangements, knowing that you will receive the best available price. This benefit can be particularly valuable for expensive purchases, such as international flights or high-end accommodations.
Along with price protection, some credit cards provide purchase guarantees. This means all the eligible purchases are protected against damage or theft for a specific period after purchase. If you accidentally damage a new camera or lose a valuable item while traveling, your credit card’s purchase guarantee may cover the cost of replacement or repair.
Rental Car Insurance Coverage
Renting a car for your adventures can be convenient, but it’s essential to have proper insurance coverage. Some credit cards offer rental car insurance, which can save you money by providing coverage for collision damage and theft.
Before accepting the rental car company’s insurance coverage, check with your credit card issuer to understand the extent of the rental car insurance offered. In many cases, credit card rental car insurance can be just as comprehensive as the insurance sold by rental companies, allowing you to decline additional coverage and save on rental costs.
Remember to read the credit card’s rental car insurance policy carefully and follow any requirements, such as using the credit card to pay for the rental and declining the rental agency’s insurance coverage.
For more information and tips to help you choose the best credit card in NZ, visit our website Credit Cards Compare.
