The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
If you haven’t started to plan your summer vacation yet, this is a great time to take account of any credit card rewards points you might’ve accrued and how you can apply them to your trip. Those points, miles and cash back can add up to some major cost savings.
And if you don’t have any rewards credit cards, now may be a good time to consider getting one. Some of these cards even offer sign-up bonuses big enough to pay for airfare or hotel accommodations. That, on top of the rewards you’ll earn for using your card to pay for your trip, can add up to some pretty nice deals now and for future vacations.
Keep in mind, a rewards credit card is generally best suited to those who don’t carry a balance — otherwise, all your points, miles or cash back can get lost to interest. And you generally need a good credit score to qualify for the better cards on the market, so it’s worth checking your credit before applying for any new plastic. Otherwise, you risk dinging your score because of a hard inquiry only to be rejected for the card. (You can view two of your credit scores, updated each month, for free on Credit.com.)
With these caveats in mind, here are five tricks you can use to make your credit cards really work for you this summer.
Family vacations are the perfect time to redeem the rewards you’ve accumulated on your credit card, or customer loyalty accounts for air travel and lodging. If you’re using some of the best rewards cards around, the points can really add up. Given enough points, you could score free nights in your hotel or even free air travel.
It’s a good idea to check on any travel insurance benefits offered by your cards. Some credit cards now come with lost and delayed baggage insurance, trip delay and trip cancellation coverage, and travel accident insurance.
For example, the card may allow for reimbursement if a trip is canceled due to the illness or death of a cardholder or family member traveling with the cardholder. Some policies can also cover you in the event of delay or cancellation due to severe weather, jury duty or for a change in military orders.
Which credit card you use to pay for your travels can make a big difference in the rewards you earn, so it’s worth your while to do a bit of research before booking your vacation.
Some cards offer double points for travel purchases, while others will give you triple points for flights booked directly with the airlines.
Another factor to consider is foreign transaction fees, which are 3% on most credit cards. There are now many cards offered that do not charge this fee, so if you have one, you’ll want to use it for purchases on your international trip.
There are lots of opportunities to earn rewards from several different sources at the same time, so being on the lookout for these opportunities can really pay off. Many issuers partner with airlines or hotels, for instance, so you may be able to pool credit card rewards with points you earn through a carrier’s or chain’s loyalty program(s). You may also be able to earn bonus rewards by making certain travel-related purchases through your issuer’s online shopping portal or rewards redemption site.
Car rental representatives generally want you to purchase the additional insurance that they sell, but there’s a chance you don’t need it. Many people who pay for their rental car with a credit card are already covered. Be sure to check with your credit card issuer to see if your card offers this kind of policy, often called a collision damage waiver. In addition, be sure to find out what is excluded, such as certain types of trucks and luxury cars, and vehicles rented in some countries.
Image: Christopher Futcher
April 9, 2024
Credit Cards
October 21, 2020
Credit Cards
August 3, 2020
Credit Cards