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- Benefits Of Using Credit Cards
Setting off on a journey? Think again about carrying around cash!
Not only using cash and debit cards can make you an easy target for scammers, but you might not be able to benefit from any type of protection against fraudulent or unauthorized transactions.
That’s where using your credit card as your chosen payment method during your trip abroad can help.
Here are just some of the unmissable benefits of this choice!
Benefits Of Using Credit Cards
Qualifying Purchases Can Help You Accrue Rewards
If you have a travel credit card, you should not miss out on the opportunity to accrue rewards, points, or air miles as you spend. And, in some cases, you’ll even be able to earn back up to 2% of the value of the purchase!
Depending on how your credit card issuer defines “travel”, you’ll be able to take advantage of reward programs when making travel purchases, including hotels, accommodation, timeshares, and car rentals. Consider starting to use your credit card from the planning phase of your trip – at least for qualifying purchases!
You’ll Be Able To Benefit From Discounts, Cash Back, and Free Perks
Aside from being able to earn points while planning your vacation, you’ll also have the chance to use the discounts, perks, and cash-back options that you have been accumulating over time.
For example, if you are a frequent flier, the chances are that you have enough air miles to enjoy a free or discounted airline ticket to a dream destination. Or, you might be able to enjoy perks such as free upgrades and access to luxury airport lounges.
Once you are at your trip destination, you’ll still be able to use your credit card to offset some of your travel expenses with cash-back offers.
Credit Cards Can Guarantee You Better Exchange Rates
Regardless of what destination you have chosen for your vacation or business trip, there is something you’ll have to deal with: conversion rates. In some cases, a cash-based society will require you to adapt quickly to how financial transactions are carried out. However, generally, it is a good idea to have a few local banknotes with you for emergencies.
But when withdrawing cash, you might have to face unfavorable exchange rates and withdrawal fees, which can be as high as 2.5-3% when using your debit card. However, when using your credit card, you’ll be able to reduce this expense and take advantage of the exchange rate offered by Visa, MasterCard, or Amex (depending on your credit card issuer).
Pro tip – When withdrawing money from an ATM or paying by credit card, be aware of a common pitfall: Dynamic Currency Conversion (DCC). To avoid wasting money on unfavorable exchange rates dictated by a local bank, make sure to charge your charge on the local currency and let your own bank handle the conversion.
The Best Credit Cards Don’t Have Foreign Transaction Fees
While some cash-based societies might require you to carry some cash on you, most countries and merchants will allow you to pay by card. However, if you are looking to use your credit card as your main payment method when traveling, it is important to check that your issue does not charge foreign transaction fees.
Consider finding a premium investment credit card that won’t accidentally eat into your travel budget!
Paying By Credit Card Can Protect Your From Fraud And Unauthorized Payments
Scams exist everywhere, but you are more likely to fall victim to one when visiting unfamiliar places or regions. That is why it is crucial to stay financially and digitally safe while traveling.
Using your credit card instead of cash or debit cards to complete financial transactions can help you safeguard your personal and banking details. What’s more, most reputable credit card issues will provide fraud protection and liability coverage, so that you can always recoup the money in the event of unauthorized or fraudulent activity.
Pro tip – Do you travel often? Don’t forget that some ad hoc credit cards also provide travel and car rental insurance!