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9 Ways Your Credit Card Can Help You Travel for Dirt Cheap

9 Ways Your Credit Card Can Help You Travel for Dirt Cheap

Let me guess…

You see pictures on Instagram of exotic places. Facebook is littered with updates of your friend’s adventures abroad, and every time you close your eyes you picture yourself on a beach in the Caribbean, or exploring the cobblestone streets of France.

Yes, you want to travel. Unfortunately, however, you can’t afford it. A flight alone costs an entire month’s pay, let alone accommodation, travel insurance, and baggage.

Luckily, travel is becoming more accessible to even those of us who need to pinch pennies. Enter the travel credit card.

Now, you can travel for less (or even for free) with your credit card with these nine benefits.

1. Free Flights with Sign-Up Bonuses

If you’ve ever seen a credit card sign-up bonus that seems too good to be true, it’s probably…not.

Yes, you read that right. As more companies begin to offer credit cards (think Home Depot, WalMart) competition is becoming fierce. Consumers benefit through generous sign-up bonuses. Companies are trying to “out-bonus” each other.

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A sign-up bonus is simply a generous offer that you get upon signing up for a credit card.

For example, a card might give you $500 in cash, or enough points for a free flight. You can get a free flight, accommodations, and sometimes even an all-inclusive vacation with sign-up bonuses.

Look for cards with generous welcome bonuses and first year annual fee waivers (making it truly free) and make sure you can afford the minimum spend requirement to be eligible for the bonus (i.e. spend $500 in 3 months).

2. Free Flights with Companion Tickets

Companion tickets are another way that credit cards are competing with each other, and it makes it oh-so-good for the user.

With credit cards, it’s simple to save up enough points and use a welcome bonus to travel for free for one person, but what if you want to bring a friend?

Well, that’s where the companion ticket comes in. More credit card companies are offering companion tickets, where you book a flight and get a second ticket for super cheap (or free) on the same itinerary. How can you go wrong with that?

3. Free Hotel Stays

Easily one of the most expensive portions of travel is accommodations. Unless you’re willing to stay in run down hostels with roaches scuttling on the floor, you risk spending more on hotels than you did on your flight.

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Unless you use the right credit card, that is. Remember when I said more and more companies are beginning to offer credit cards? That includes hotels, too.

With a sign-up bonus, you can score 5 or more free nights with some hotels. If you are strategic with which cities you use your free stays in, this can cut your costs substantially.

4. Waived Foreign Transaction Fees

If you’ve ever gone on a trip with a non-travel credit card, you’ll know what I mean. It’s painful to get back from your relaxing vacation to see that you were charged hundreds of dollars in foreign transaction fees.

See, many credit cards charge a foreign transaction upwards of 2.5% over and above the exchange rate. But an increasing number of credit cards are now eliminating the fee, making it the cheapest way to spend money out of country.

If you change money at a foreign exchange counter at the airport, hotel or a tourist area, you can get charged in excess of 10% above the exchange rate. Snagging a travel card with waived foreign transaction fees is a budget-conscious move.

5. Free Travel Insurance Coverage

One cost of travel most people forget about is travel insurance. Unfortunately, travel insurance is a necessity but it’s easy to overlook when you’re budgeting for a trip.

However, with the right card you may be able to skip the travel insurance line on your budget.

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Most travel credit cards come with free travel insurance, and sometimes even trip protection insurance, as long as you book your trip with the credit card in question. Check the terms of your card for travel medical, trip cancellation, trip interruption, trip delay, lost baggage, car rental, accidental death, and even purchase protection. These travel insurances can easily be valued at over $500 per year, and will be yours for free with the right card.

Make sure to read insurance certificates to make sure you don’t fall into any “exclusions”.

6. Free Checked Bags

Did you know that hardly any airlines that offer free checked bags anymore?

It’s true, and it’s tragic. Now, you have to spend $25 or more just to bring your luggage on the flight. More people try to travel with just a carry on to avoid the cost, but you don’t want to have to resort to that.

Many airlines now are coming out with credit card rewards that include a free checked bag, saving you that potentially expensive surprise at the airport. (Make sure to find out whether it’s free for any flight or just flights you’ve redeemed points for.)

7. Free Access to Airport Lounges

Have you ever had to spend more than an hour at an airport?

If you have, you probably craved somewhere comfortable to hang your hat while you waited for your flight. That’s why airlines have introduced lounges. Lounges are usually reserved for business class tickets and frequent fliers who achieve elite tiers, and they can cost $75 per visit ($25 per guest).

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However, many travel and airline cards offer a number of guest passes to lounges – some even allow you to bring a guest for free.

8. Cash Back at the Gas Pump

If you’re more of a road tripper than an air traveler, you can still save money to travel through your credit card. You can get up to 5% cash back at the pump with multiple no fee credit cards, that either offer the promo in the first 6 months, or offer it as a rotating category.

This is great for road trips and RVs. You can find great sign-up bonuses for gas on certain credit cards, too.

9. Avoiding Expensive Security Costs

Many cities are prone to security issues – even the most desirable destinations.

For example, Barcelona is a wonderful city to visit, but there are high security issues with pick pockets and thievery. This is a surprisingly wide-spread problem across not only developing countries, but even first world countries like Spain.

A security issue is one of the most expensive things that can come up on a trip. That’s why travelling with credit cards rather than cash will save you big time.

If your credit card is stolen, you can cancel it right away and you will usually have a level of protection against unauthorized purchases. If cash is stolen, it’s lost forever.

Credit cards are sent from the travel Gods to help people save money on their trips.

And if you’re not American, don’t worry. It used to be that only Americans could benefit from travel rewards, but now Canadians have great travel credit card options, too.

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Marc Felgar

Marc Felgar is an aging, health & senior care expert focused on improving the lives of mature adults.

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Published on November 11, 2020

10 Best Ways to Save Money Faster and Smarter

10 Best Ways to Save Money Faster and Smarter

People love to talk about budgeting, reducing spending. and investing. But unfortunately, talk is cheap, and poor money management is expensive. It’s easy to talk about the best way to save money, but putting it into practice is a different thing.

What people need to talk about is the practical and efficient ways you can quickly save money to accomplish your goals. After all, they don’t teach this stuff in school.

Here are the 10 best ways to save money faster and smarter.

1. Cancel All Your Subscriptions

Yes, all of them.

Okay, you can keep your wifi and trash. But other than that, cancel all your monthly subscriptions for one month. You will survive, I promise. Better yet, you will realize you won’t miss all of them.

Now that you have had 30 days to examine what you really missed and what you never thought twice about, you can add some of them back in. The others? you never have to think about them again.

This is something you can and should do with every part of your life. If it’s clutter, cancel it. Being able to step back and see what is cluttering your life and what is excelling your forward helps improve your quality of life and financial standing.

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2. Automate Savings From Your Paycheck

Many of us are so excited about getting a new job that we rush through the paperwork during the hiring process. Good news for you, I have had lots of jobs so I have seen it a million times.

There is an option for a portion of your paycheck to go directly into a secondary savings account. This is by far the most effective way to save money every month. We tend to spend most of what we have. So, if we take it off the top first, then it’s less likely to be spent. Just head over to HR and ask. It will only take two minutes.

3. Cancel the Happy Hours for the Rest of the Pandemic

We are in the middle of a global pandemic, which means that there is no better time to buy some drinks from the local store and stop shelling out $5 a drink at the local cocktail bar. When we look back at our bank statements, we are always shocked that fast food and alcohol can add up so quickly. You can easily save a couple of hundred dollars just by taking this step.

A great exercise is to print out your last bank statement and highlight all the areas of alcohol and fast food. The amount may surprise you and make you think twice about that old fashion.

4. Online Grocery Shopping

Some people think online shopping increases the amount they spend. For the most part, I would agree—except for this category.

Online grocery shopping is now a no-brainer, though. Whenever you walk through a grocery store, two things always happen: you always grab impulse items, and you never know the total of your cart until you checkout. This means that we always spend more than we originally planned.

With online shopping, you can see your total as you add items to your cart. You are way less inclined to make those impulse purchases and because of that, I would venture to say that you could even pay to have them delivered to your door and still save money each month by choosing online grocery shopping.

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5. Get a Famzoo Debit Card

This is something my wife and I swear by, and it’s great for the entire family! Famzoo strictly exists to help families and kids budget their money better. Each month, my wife and I have an allotted amount loaded onto our pre-paid Famzoo debit card. This amount has changed every year depending on promotions, kids, stage of life, etc.

The important part is that when you give yourself the freedom to spend a certain amount, you are more likely to only spend the allotted amount. Think of it as a diet. If you are counting calories, you are more likely to stick close to the amount you set. You can also look for some tips online to better stick to your family budget.

6. Purge

This is actually my favorite to do, and it is actually one of the best ways to save money. Raise your hand if you have ever moved. Okay, so everyone.

When we move, we are always amazed at how much junk we have acquired. I have found that about every 6 months, I can find a couple of boxes to sell online of things that we never use. This not only gives you so extra quick cash, but it also keeps your house more tidy and organized.

Now, go clean out that garage!

7. Amazon Subscribe and Save

32! That is how many items I have setup on amazon subscribe and save. Let me explain.

This sounds expensive, I know. But it actually saves us hundreds of dollars per year! We all need toothpaste, shampoo, razors, laundry detergent, toilet paper right? This feature is truly a triple threat. When you have more than 5 items on subscribe and save, you automatically unlock the max savings for every product on your list. This can be up to 20% per item!

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Now, even better is that it ships straight to your door on the exact day you want the item, maybe monthly or maybe you only need it every 4 months. This way, you never have too much or never run out. Either way, it’s totally customizable.

Lastly, there is no contract for any items, which means you can switch brands or items at any given time at no cost. My advice: every single staple item should be on your subscribe and save.

8. Rewards

This may ruffle some feathers, but if you are using your debit card for purchases, you are missing out on free money! We have this notion that credit cards are evil but in reality, they are the same piece of plastic as your debit card.

How you use it can be bad, don’t get me wrong. But if you want my opinion though, ditch the debit card and get a rewards credit card. Use it just like you would your debit card and make sure to pay it off as soon as the statement comes in!

Just to give you an idea of how powerful this can be in terms of money, here are some things that our miles have paid for:

  • 4 nights in Vail with Flight
  • Rental car in Vail (convertible might I add)
  • Flight to Ireland
  • Flight to Hawaii
  • Multiple staycations at very nice Hotels

That’s roughly about 7 thousand dollars in travel expenses so far! Remember that the credit card is just a tool and can be one that benefits you if you use it wisely. Ironically, this can be an effective way to save money.

Pro tip: If you don’t trust yourself carrying around a credit card, then set up all your monthly bills with your credit and leave it in a drawer at home. This way, you rack up miles but don’t get tempted to overspend.

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9. Vacation With Friends

Now, I know travel is hard right now but what a perfect time to go grab an Airbnb in the woods with a couple of friends and detox from the world right now!

Vacationing alone can be pricey and get rather boring quickly, but if you split lodging and set out for a road trip, it can become affordable quickly! For a couple of hundred bucks apiece, you can have one of the most relaxing vacations ever. Don’t forget to pick up your food at the local grocery store to avoid eating out every meal!

10. Make a Budget

When is the last time you updated your budget or made one for that matter? Making a budget is like writing down your goals. If you don’t make a budget, then you will struggle to save.

How can you know if you are spending wisely if you are not tracking everything?

Our advice would be to get a finance app like Mint, Every dollar, or personal capital. All these apps are free and do a tremendous job of tracking spending and budgeting. I still am old-school and have an excel spreadsheet which I do highly recommend.

Work Smarter, Not Harder

The entire goal is to boost your bank account while reducing the effort required. Efficiency is the name of the game, and automation is the key player. Luckily, we live in a world that has more perks than we can ever take advantage of. But if I were to choose a few, it would be the ones above.

Taking on all 10 of these steps may seem a little daunting. You can first try to pick three of your favorite and start there. Saving money doesn’t have to be a chore as long. As we use the tools correctly, it can be quite effortless. And now, you have a great blueprint to get started!

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Featured photo credit: Sharon McCutcheon via unsplash.com

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