4 Surprising Ways Your Credit Card Can Help You Save Money on Your Travel Expenses

Whether it's shopping, dining, or paying bills, it’s undeniable that credit cards have revolutionized the world of commerce. These plastic cards enable consumers to go cashless, creating safer, faster, and more efficient transactions. Credit cards have also given us new avenues to enhance our shopping experience, allowing us to purchase things from local and international online sellers with ease.

Even though a credit card increases your purchasing power, however, some Filipinos can be hesitant to get one. Some prime concerns include going over-budget and paying tons of hidden fees. But what if we told you that your credit card can actually be a powerful ally in saving money on some of your expenses?

Indeed, credit cards come with a range of benefits that let you enjoy your purchases while keeping your budget intact. When covering your travel expenses, for example, your credit card can enhance your overall experiences through the following perks:

Various Travel Rewards

Credit cards that offer travel rewards programs can help you A LOT on your travel expenses through points, which you can earn whenever you use your credit card to make payments, purchase from partner brands and establishments, or pay your bills. You can then use these points to cover the cost of your hotel stays or convert them to airline miles for your future flights. There are also credit cards that come with fuel vouchers, give rebates on travel-related purchases, and have dual currency billing.

Another way you can maximize a credit card for travel is by submitting a new credit card application. Some card issuers also offer big sign-up bonuses that allow you to earn a significant number of reward points immediately. When you have more points, you’ll be able to access your card’s best travel rewards. There are also plenty of credit cards that have partnerships with local and international hotel chains, allowing you to save on your accommodation bookings.

Travel-Focused Perks

Credit cards tailored for travelers often come with a range of benefits and perks designed to enhance your travel experiences while providing cost savings. For example, certain credit cards offer complimentary airport lounge access, allowing you to relax, enjoy refreshments, and access business facilities before your flight, regardless of your airline or ticket class. You can also get access to discounted car rentals, exclusive travel packages, and even travel portals or concierge services that can assist you in finding the best deals and arranging your travel itineraries.

Aside from the above-mentioned hotel partnerships, many travel credit cards also have partner airlines, so you can get discounts on your flight tickets and avoid paying costly luggage fees. Additionally, travel-focused credit cards may provide you with travel insurance coverage, trip cancellation/interruption insurance, lost baggage reimbursement, and emergency medical coverage. With the right credit card, you can enjoy your travels with peace of mind even through unexpected situations.

Companion Passes

If you’re planning to get an airline credit card, one of the biggest perks you can enjoy is a companion pass or ticket. This allows you to take a travel companion along without paying for the price of their ticket (do note that you still have to pay a few fees and taxes). However, qualifying for this reward can be challenging because airline credit cards have a high spending requirement to qualify for such benefits. That being said, there are still many perks that you can enjoy using an airline credit card. Research your options so you can get one that suits your needs and lifestyle.

Waived Foreign Transaction Fees and Low Currency Conversion Charges

When traveling internationally, you need to watch out for foreign transaction fees and currency conversion charges on your credit card. These are usually 1% to 3% of the purchase amount and although they might seem harmless, they can quickly add up when you make frequent credit card purchases abroad. Fortunately, there are travel credit cards that waive these fees, allowing you to shop and dine abroad with no worries.

Quick Credit Card Tips

To get the most out of your credit card’s travel perks while ensuring that you’re using it wisely, here are some things you can do:

Notify Your Credit Card Issuer

Before embarking on your trip, inform your credit card issuer about your travel plans. This simple step will allow the company to make a note on your account and expect transactions from different locations, so your purchases don’t get flagged as suspicious.

Monitor Your Account Regularly

Check your transactions frequently through online banking or mobile apps to ensure all charges are legitimate. Regularly monitoring your account can help you detect and address any issues promptly, so you can travel and shop with peace of mind.

Manage Your Credit Card’s International Spending Limit

One way to ensure that you stick to your budget while traveling is to manage your credit card’s international spending limit. By lowering your card’s limit, you can guarantee that you will only be able to spend a specific amount during your trip. To set your card’s international spending limit, you can access your account by visiting your credit card issuer’s website or mobile app and configure the card’s settings from there. You can also contact your card’s customer service and have them lower the limit for you.

Whether you’re going on a holiday or a business trip, taking advantage of your credit card’s travel rewards and perks is an excellent way to enhance your travel experience. Not only will you gain exclusive access to great rewards, but you also get to save some cash. Just remember to read the fine print and use your card responsibly.