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4 Reasons to Use a Credit Card to Pay for Vacation

4 Reasons to Use a Credit Card to Pay for VacationThere are few events throughout the year quite as exciting as heading out on a vacation. Whether you are traveling with your spouse and your kids, just your significant other, or even all alone, vacations are a great way to step out of the day-to-day routine of life.

With a little planning and saving in advance, you can enjoy a memorable vacation that will immediately have you looking forward to your next travel adventure.

When getting ready for a vacation, there are several different planning tasks required. You have to make an itinerary of some kind, you need to make reservations for things like transportation and lodging, and you need to determine how you will pay for everything. This last point is the topic of this article.

While on the average trip, you are going to spend a significant amount of money, often in a variety of different locations. We recommend considering the use of your credit card for most, if not all, of your purchases. The following four reasons highlight why you might want to use a credit card to pay for vacation.

1. Security

Most credit cards come with a variety of customer benefits in terms of security. Your purchases are likely backed by some kind of guarantee, you should have protection against fraudulent charges, and your bank may even call you if anything looks out of the ordinary.

When spending money in an unfamiliar place somewhere far from home, it is nice to know that your credit card company will be on your side. Of course, you should always check on the specific benefits of your card before you travel just to make sure it offers the features you need.

2. Budgeting

By placing all of your charges during the trip on the same card, you can easily see how much you spent when you return back home. This will be helpful in terms of budgeting for future vacations.

Did you spend more or less than you expected? By how much were you off? Taking even just a few minutes to review the trip when you return home will help you plan out your next trip in even greater detail.

3. Go Cash Free – Or Almost

Many tourist destinations are hotspots for pickpocketing activity, as criminals know that tourists will be carrying plenty of cash that they can try to grab. Don’t give them the opportunity.

If you plan on using your credit card for nearly all of your purchases, you can protect yourself by simply carrying very little cash. It is smart to have a little bit of cash on hand for small expenses where credit cards might not be accepted, but limit how much you carry to reduce exposure to theft.

4. Rewards!

If you are going to spend quite a bit of money on a big vacation, you might as well get a little bit of that money back in the form of rewards on your credit card. Depending on the card you have, you may get cash back based on the size of your purchases, or you may get points which can be redeemed for a variety of things.

 

Do you use a credit card to pay for vacation? Why or why not?

 

Photo courtesy of: 12019

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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