As summer approaches, many people are looking forward to taking some time off from work and taking well-deserved vacations. Whether it’s a quick day trip, an epic road trip, or an overseas adventure, you’ll probably be using your credit card(s) on the go.
Make sure you enjoy your vacation time to the fullest, while also managing your finances wisely. Here are five tips that can help you use your credit cards wisely during your summer adventures!
1. Create a Budget and Stick to It
Before going on your summer vacation, take time to create a budget that outlines how much you can afford to spend on various aspects of your trip. You’ll want to consider things such as transportation, accommodations, food, activities, and even souvenirs. By setting a clear budget, you can avoid overspending and accumulating unnecessary debt on your credit cards.
When using credit cards for vacation expenses, regularly track your spending to ensure that you are staying within your budget. Consider using budgeting apps or setting up alerts on your credit card accounts to monitor your spending and avoid any unwelcome surprises when you return from your trip.
2. Take Advantage of Travel Rewards
If you have a credit card that offers travel rewards, summer vacation is the perfect time to take advantage of these benefits. Many credit cards provide rewards such as cash back, points, or miles for every dollar you spend on travel-related expenses. By using a travel rewards credit card for vacation purchases, you can earn rewards or points that can offset the cost of future trips. Or in other cases, they can at least provide discounts on travel accommodations and activities.
Before using your credit card for travel expenses, review the card’s rewards program details. You’ll better understand how to maximize your rewards earnings. Also, pay special attention to any annual fees or redemption limitations that may apply to your credit card's rewards program.
3. Avoid Foreign Transaction Fees
If you're planning an international vacation trip this summer, be aware of foreign transaction fees that may be charged by your credit card issuer for purchases made in a foreign currency. Such fees can add up quickly and significantly increase the cost of your trip. To avoid paying unnecessary fees, consider using a credit card that waives foreign transaction fees or has minimal fees for international purchases.
Contact your credit card issuer to inquire about their foreign transaction fees and any additional charges that may apply to your card before traveling abroad. You should also check online resources or review your credit card agreement for information on foreign transaction fees to help you make informed decisions about using your credit cards while traveling internationally.
4. Use Credit Cards for Emergency Purposes Only
Credit cards can be a convenient form of payment during your summer vacation. That said, it's essential to use them responsibly and avoid accumulating excessive debt. Consider using your credit cards for emergency purposes only.
Instead of relying solely on credit cards, consider using cash or debit cards for daily purchases to help you stay within your budget and avoid overspending. By reserving your credit cards for emergencies, you can have peace of mind knowing that you have a financial safety net in case unexpected situations arise during your trip.
5. Pay Your Balances in Full and On Time
One of the most crucial tips for using credit cards during summer vacations is to pay your balances in full and on time. By making timely payments on your credit card bills, you can avoid interest charges and maintain a good credit score.
Set up automated payments or reminders to ensure that you don't miss any credit card payments while you're away on vacation. Staying on top of your credit card bills and paying them in full each month is worth it. It enables you to enjoy vacations without worrying about accruing unnecessary debt or damaging your credit score.
Final Thoughts
Using credit cards wisely can help you make the most of your summer trips while also managing your finances responsibly. Budgeting, understanding your card’s terms and fees, and paying your balances on time can all contribute to a more stress-free vacation. Above all, sticking to responsible spending habits while using your credit card is a smart and easy win. For more tips on making summer vacations stress-free, check out this other blog article.
Get a Visa Credit Card that Fits Your Needs
Whether it’s higher credit limits or rewards points you seek, get the credit card you need. At TwinStar, we offer a variety of Visa credit cards that fit different needs. To learn more about our offerings or to apply for a TwinStar Visa card, visit TwinStarCU.com/visa, call 800.235.3115, or visit your local branch.