I do not like to travel. If anyone ever tells you this, don’t believe them.
I’m sure there isn’t a single human being who wouldn’t want to travel. Not even those who say they don’t like to.
Why do we travel? We are in this concrete jungle, working hard 9-5 every day and waiting for the weekend to hang out.
People, instead of working to live, are living to work, and once in a while they aspire to travel to get out of this concrete jungle and the mess called civilization.
But what stops you from travelling is money. When we have many other necessities like rent, monthly EMIs, food, and clothing to meet, no one dares to dream of travelling as it is getting expensive these days.
Well, what if I say we can travel with very little money or for free sometimes?
Yes, with little planning and knowledge of maximizing credit card rewards Credit cards can be a valuable resource to pay for your trip. Let’s see how
Know how to use credit card points for travel.
1. Earn sign-up bonus credits:
A recent survey by Forbes Advisor found that the majority of Americans (around 63%) would rather redeem bonus awards they receive in the form of cash than travel or other rewards.
When you get a credit card, usually you get sign-up credits or a welcome bonus that can be redeemed to pay for your travel expenses and stays, which gives you a higher yield than redeeming the same for cash.
Look for cards that offer good welcome bonus points.
For example, the IHG Rewards Premier Credit Card offers you 140,000 points for spending $3,000 in the first 3 months of account opening.
The Chase Sapphire Preferred Card offers you around 80,000 points for spending $4,000, and the Hilton Honors Aspire Card from American Express offers 150,000 points for spending in the first 3 months of account opening.
Keep in mind that the value of this differs from card to card.
So, it is always better to redeem them at the respective partner brand to get the maximum benefit out of them.
2. Get Travel companies’ co-branded credit cards:
While taking out a new credit card, always choose co-branded credit cards, which offer you rewards like airline miles and hotel points along with more reward points than a normal one.
Credit cards like the IHG Rewards Premier Credit Card will offer you free stays at IHG properties, which are spread all around the world, including 3904 properties in the USA alone.
Cards like British Airways Visa Signature Card offer you a welcome bonus, travel points, and a chance to earn a free companion ticket.
For beginners, cards like the Chase Sapphire Preferred Card are perfect as they offer a mix of the rewards mentioned above with good redemption flexibility.
Several credit cards also offer free travel insurance.
Some of the credit cards mentioned above have high credit scores as eligibility criteria to open an account with them. So, make sure you always maintain a good credit score.
3. Plan well in advance to get the best fares:
We are very lazy when it comes to planning and executing things. But planning well in advance has many advantages when we want to travel.
Cost Savings: By planning your trip well in advance, you can take advantage of many things, like discounts on early bookings, promotional offers, and the best deals on transportation like flights, stays, and activities. Usually, prices tend to increase as the travel date approaches. So, booking well in advance can help you save a lot and also secure the best deals.
Availability of preferred options: By planning well in advance, you can increase the probability of getting the best stays, flights, or specific experiences you desire. In popular tourist destinations, hotels and attractions fill up quickly, especially during the peak seasons. By reserving in advance, you can get your preferred options and avoid disappointment due to limited availability.
Time for research and preparation: Planning in advance gives you enough time to research your travel destination, including its tourist attractions, local customs, transportation options, and necessary travel documents. This helps you make decisions, create a good itinerary, and ensure a smoother travel experience.
The above-mentioned are a few points that enhance your travel experience with a limited budget.
Bonus Tip: Breaking up the trip
Instead of taking direct flights from your place to the destination, breaking the whole journey into pieces would save you a lot, along with the chance to take a short trip in some other country.
Let’s say you are travelling from Los Angeles to Bali, Indonesia. Searching for a flight from LAX (Los Angeles Airport) to DPS (Bali Airport) will result in flights starting at 1150 USD.
However, if you split the journey into two, then it is something like this: From LAX (Los Angeles Airport) to SIN (Singapore Airport), you will pay 830 USD, and from SIN (Singapore Airport) to DPS (Bali Airport) for 83 USD. Summing the two flight fares will be around 920 USD.
Even if you add transit visa charges for stopping in Singapore, it will be around 22 USD. This means you will still save 210 USD, which can be used to stay for at least 2 days in a very good hotel.
To find such Transit destinations, you can use websites like flightconnections.com
Note: The flight fares mentioned in this post are the cheapest available at the time of writing and may not reflect the current prices at the time of reading.
4. Check for free access to airport lounges and food:
Many banks nowadays offer free access to airport lounges and also offer complimentary food.
Do not hesitate to take advantage of it.
But check if your card is eligible for those things before you avail yourself of those services.
5. Always pay with a credit card:
Paying with credit cards not only eliminates the need and risk of carrying large amounts of cash but also gives you many benefits.
It will be easy to track all your expenses if the transactions are made with the card through online banking and keep a check on your spending.
Also, the more you use your credit card, the more you will be rewarded.
6. Avoid transactions like balance transfers:
While we discussed where and how to use credit cards, it is also important to know where you should avoid credit card usage.
Never use your credit card for currency exchange, as they will charge heavy fees on it.
Carry some cash and exchange it for the local currency. Also avoid using your card, where they charge you around 1-3% for transactions.
Finally, one of the main risks of using a credit card is overspending. Keep a check on your spending’s and stick to your plan.
Note: – As different cards offer you different benefits, it is important to sign up for the right card according to your requirements, and taking multiple cards and managing them well will be an added advantage.
But keep in mind that signing up for multiple credit cards might create a hassle of maintenance, and you might end up paying a heavy annual fee for all of them.
While you should maximize the benefits of credit cards, it is also important to understand the potential risks of using multiple of them.
So, use them wisely to enjoy your travel for as little as possible and sometimes for free.
