My 11 day trip to Japan this year including direct flights, hotels, food, fun, and transportation will only cost $1,500. Let me explain how I use credit cards to travel.
Credit cards can be a great way to save money and earn rewards on travel. Here are some tips on how to use credit cards to travel:
Choose the right travel credit card. There are many different travel credit cards available, with different rewards programs and benefits. Choose a card that offers the rewards that are most valuable to you, such as points or miles that can be redeemed for flights, hotels, and other travel expenses. For my trip to Japan, I relied on the Capital One Venture, American Airlines Adviator, Chase Sapphire, and the American Express Platinum.
Pay off your balance in full each month. To avoid paying interest, pay off your credit card balance in full each month. If you can’t pay off your balance in full, try to pay as much as possible each month to minimize the amount of interest you pay. This is very important because maintaining a good or even excellent credit score allows you to qualify for higher bonus incentive credit cards.
Take advantage of travel rewards programs. Most travel credit cards offer rewards programs that allow you to earn points or miles on your purchases. These points or miles can then be redeemed for travel expenses. Be sure to sign up for your card’s rewards program and start earning points or miles as soon as possible. These miles, if redeemed correctly, can even take you round trip from California to Japan!
Use your travel credit card for all of your travel expenses. To maximize your rewards, use your travel credit card for all of your travel expenses, including flights, hotels, rental cars, and dining. Some travel credit cards offer bonus points or miles for certain types of travel expenses, such as flights or hotels. Certain Travel Credit Cards provide 5x points per $1 spent on travel expenses like flights, hotels, etc.
Be aware of foreign transaction fees. When using your credit card abroad, you may be charged a foreign transaction fee. This fee is typically a percentage of the purchase price. To avoid paying foreign transaction fees, choose a credit card that doesn’t charge them.
Take advantage of travel benefits. Many travel credit cards offer travel benefits, such as airport lounge access, travel insurance, and baggage insurance. Be sure to familiarize yourself with the travel benefits offered by your card and take advantage of them when possible. My go-to for airport lounge access is the American Express Platinum.
Here are some additional tips for using credit cards to travel:
- Use your credit card to book your flights and hotels. This will give you the most flexibility when making changes to your travel plans.
- Use your credit card to pay for rental cars and other travel expenses. This will help you earn points or miles and protect yourself from fraud.
- Be sure to keep a copy of your credit card statement when you travel. This will help you track your spending and make sure that you’re not being charged any unauthorized fees.
- Notify your credit card issuer before you travel. This will help prevent your card from being blocked when you use it abroad.
By following these tips, you can use credit cards to travel and save money and earn rewards at the same time.
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