We all know that owning and using a credit card has many benefits. These benefits include reward points, cashback, surcharge waivers, purchase discounts, increased credit limits, etc. You can book flights at a discount using your travel credit card if you are a frequent flyer. You can even earn more if you utilise a credit card offering the highest reward points.
So if you are considering a vacation and calculating your budget, be mindful that you can reduce your expenses if you use a credit card designed for travel. A travel credit card makes you eligible for flight discounts, air miles points, cashback, hotel reservations, free lounge access, and other perks. So if you are planning a trip, here are five smart ways to save money with a travel credit card.
Five smart ways to save money on your trip using credit cards
Choose a low-interest credit card
If you have vacation plans or constantly travel by air, you can save by getting a low-interest credit card. This type of credit card has the lowest interest rate, and repayment is spread over several months. You can save via zero APR and credit card balance transfer APR.
With a zero APR option, you have an extended repayment period without accruing interest; and with a card balance transfer APR, you can transfer your unpaid credit balance without any charges. The savings can be applied toward your travel needs, reducing travel expenses.
Bill flight tickets to your credit card
It is better to always bill your flight tickets to your credit card because of the rewards that come with the option. The reward points for travelling by air get measured in air miles. The reward can vary with each financial institution or credit card company, but you still get points for each mile. So the more you travel, the more reward points you collect.
You could get other perks like free luggage handling, travel insurance, lounge access, etc. Putting the rewards from your credit card air flights together over a period could be worth your next flight ticket.
Use cards for payments that come with a reward
Besides flight discounts and air mile rewards, your credit card may offer other exciting perks such as reward points, discounts, or privileges for hotel bookings, dining in restaurants, VIP lounges, and safari tours. When you use your credit card for travel payments or purchases – it’s not because you don’t have an alternative form of payment – but because you aim to get the best out of your credit card.
Use travel insurance
Some credit cards offer travel insurance if you pay a higher premium. It is never a loss if you have to subscribe to a higher premium for travel insurance. If you find paying a higher premium very expensive, you can choose the lowest APR or 0% APR credit card. It will enable you to maximise your travel experience while making repayment flexible and convenient.
Travel insurance would make you eligible for a refund if, for some unplanned reason, you can’t get on the flight.
Ensure your rewards are converted to cash and used for payments associated with travel. This way, you are paying with rewards and enjoying savings for using your credit card. Buying your next flight ticket becomes easier with enough air mile points accumulated and converted to cash.
So there you have it; the best way to save money on flight trips is with your credit card. Choose the credit card with the highest reward points for travel. But do not be blindsided by credit card rewards, be sure you have a solid repayment plan before using the cards. Also, ensure the transactions billed to your credit card are worth the debt and the reward points.
Choosing the right credit card can help you get flight discounts and other privileges for your trip. When you pay for your air flights and other travel needs with credit cards, you earn reward points to use for future trips.