How to use credit cards to travel on a budget

Summary

• Choose a travel rewards card that aligns with your travel style to get the most out of your rewards.
• Keep an eye on your purchases to make sure you’re earning points you can use towards travel in the future.
• Your travel rewards card could come in handy to help cover unexpected expenses while you travel and offer benefits like fraud protection and travel insurance.

Taking a break for a vacation can do wonders for your stress level, but the costs associated might not. The good news is a travel credit card, especially one that rewards you with points, can make your trip far more affordable and relaxing. Here are six ways to use travel credit cards to make your next vacation a dream.

1. Choose the right card to maximize benefits

The best credit cards with travel perks reward you for the ways you already like to travel. If you value flexibility, you can choose a travel rewards card that lets you earn points across multiple airlines. A more general traveler might enjoy a card that offers more extensive travel rewards. For example, the U.S. Bank Altitude® Connect Visa Signature® card offers points on prepaid hotels and car rentals booked through the Altitude Rewards Center as well as points on travel, whether you book directly with airlines, hotels, cruises, or trains, giving you more flexibility to earn points.

 

2. Take advantage of welcome offers

If you’re in the market for a new credit card, don’t apply until you’re ready to book your trip. Why? Because new cardholders typically get sign-up incentives and bonuses for spending a certain amount in the first couple of months. These perks could include cash back or a surplus of reward points.

For example, some cards like the U.S. Bank Altitude® Connect Visa Signature® card, allow you to earn bonus points when you meet a certain spending requirement within the first few months of opening. So, if you’re planning a trip, meeting that spending threshold could qualify for rewards you can use to get discounted travel in the future.

 

3. Track spending to earn rewards

Keeping an eye on your spending could help you make the most of your rewards earnings. Beyond the welcome offer, many travel credit cards offer rewards on everyday purchases like gas or dining out. These cards may help save money during your trip or reward you with cash back or points to use toward future family vacations. For example, a U.S. Bank credit card may offer:

• Cash rewards to help offset vacation expenses
• Travel rewards that can be used for flights or hotels
• Retail rewards to put toward new camping gear or sports equipment

Before you commit to a particular card, use a points calculator to understand your earning potential based on your current monthly spending. That way, you can see in dollars what your points might turn into, giving you greater visibility into the impact of using your cards to travel.

4. Use your card to prepare for the unexpected

No matter how much you plan, surprise expenses can still pop up. (Think: last-minute ticket changes, replacement luggage, special souvenirs, or spontaneous adventures.) So, it’s a good idea to have a credit card that you can use for unexpected costs while still earning rewards. You may also want a travel credit card to book any airlines, hotel rooms, or travel company services.

Additionally, many travel rewards credit cards offer benefits such as fraud protection, rental car insurance, and travel insurance. Having these card benefits can help cover emergency costs so you might not have to pay out-of-pocket or blow your travel budget in worst-case scenarios.

5. Keep your payments secure

Before you leave, be sure to call your bank and let them know when and where you plan to travel. Or, if you have a U.S. Bank account, set up travel notifications within the app. This helps guard against unnecessary fraud warnings or even a possible freeze on your account if the bank suspects misuse.

While traveling, it’s important to be on higher alert than usual for credit card thieves. Minimize the time your credit card is out of your wallet with contactless payments. Retailers that accept contactless payments allow consumers to make purchases in seconds with the tap of a card. Or link any U.S. Bank card with Apple Pay, Google Pay, or Samsung Pay for mobile payments on the go.

 

6. Understand all the ways you can redeem points

In addition to using credit card points toward future travel, you may also be able to redeem them for gift cards, a direct deposit into your bank account, or merchandise, depending on the card. Read the fine print or contact your credit card issuer to be sure you’re using points in the way that suits your lifestyle best.

Not only are credit cards great for planning vacations on a budget, but they can also provide invaluable benefits and perks while traveling. Be sure to choose a credit card that rewards you for all the ways you like to travel and compare cards before applying to be sure you’re getting the best terms.

Table of Contents