Everyone deserves a vacation even if it’s not a very long one. While talking about vacations, the first thing we check is our bank balance. Because finances are very important in case you are planning on traveling to a place where you do not know anyone except for yourself. In these cases, emergency funds become necessary. By emergency funds we do not mean your Fixed Deposits and all but your credit cards.
Why take extreme measures when you can cope with all your financial needs for traveling with a credit card? Credit Cards are not just useful for your day-to-day expenses, they also help you get great deals with brands, hotels, and restaurants. These deals can help you save a lot while spending and getting value back in the form of rewards is a pretty attractive deal. The credit card will not only cover your expenses for your vacation but will also help you get the best available prices at hotels and discounts at partnered restaurants.
All you need to do is use your credit card very wisely. You just need to know which rewards credit card will be the best for you.
How does Travel Rewards Credit Cards Work?
There are three major types of travel rewards credit cards in the market which are general travel, hotel, and airline credit card. This means that there are general or bank-affiliated credit cards and co-branded credit cards. This co-branding can be between a hotel and a bank or even between an airline and a bank. There are credit cards are enough to give you an enormous amount of beneficial features.
Just by doing daily shopping, you accumulate reward points and these reward points can further be transferred into air miles which can be used to buy your plane tickets which is one of the major expenses of your travel. You also get discounted prices for your hotel rooms with partnered brands and the same goes with dining.
Things to do before going on vacation
Before you get started there are a few ground rules you need to make clear to get the best out of your travel rewards credit card.
Assess your priorities –
This is very important before financially planning for a vacation. You need to check all your prioritized expenses to find out where you need to allot most of your money. Usually, the major expenses which can occur during a vacation are for traveling, stay, and food. Traveling being the biggest expense will exhaust most of your funds so it is beneficial to buy the ticket from the airline itself in case of a co-branded credit card. Next comes your stay, not but there are many Hotels in which different financial institutions have collaborated to get the customer’s best rates, you can take advantage of that as well. Lastly the food, there are dining discounts that you can get at different places with your travel reward credit card.
Even in case, you are a frequent traveler and a brand-loyal person for both traveling and staying, the best option you have is the co-branded credit card. Finally thinking about your spending habits is also very important. This is important that you are aware of how much and where you are going to spend. Suppose while traveling you spend a lot on food or fun activities or shopping, while you make sure that you have allocated enough funds for every activity.
Know You Limits –
Users experienced in using travel credit cards often hold multiple credit cards which can maximize the value you can get every time you travel. But that might not be the case for everyone, you need to know your limits even before applying for more credit cards. Think about how much you can afford as your annual fees and how many times you will be using your credit card. Make sure that you are aware of the time and effort it is going to take to manage multiple credit cards.
It is better to keep your annual fees to a minimum as possible if you are just starting to build up your financial standing. This can also help you stay organised and you will struggle less while managing the credit cards.
Best Travel Reward Credit Card –
Here is a list of one of the best Travel Rewards credit cards in the market from different financial institutions. You can compare them and check out which credit cards would fit you the best. The cards are as follows –
- Club Vistara SBI Card PRIME
- 6E Rewards XL – IndiGo HDFC Bank Credit Card
- HDFC Bank RuPay IRCTC Credit Card
- MakeMyTrip ICIC Bank Platinum Credit Card
- American Express Platinum Travel Credit Card
All these five credit cards are one of the top most affordable credit cards in the market. The more you spend, the more you get to earn will all these credit cards.
The best experience one can have while traveling depends on how comfortable it was and was it worth the money. To manage both these issues for you, credit cards are the best tools one can bet on. Not just make your travel comfortable and worth it, but you always get to save with discounts and rewards on all your expenses. Before traveling, you need to make a detailed list of your priority expenses and needs and know your limit.
Having more than one credit card might be great but make sure you are only choosing the best for yourself. Use a credit card with a responsible nature so that you can make sure that while traveling you are not making any financial mistakes and also taking care of your credit.