Every year, I plan a trip to meet my parents in a vacation spot in the US. They live on the Eastern Shore of Maryland and I live in Winter Park, Colorado. We often tire of going to visit each other in the same place so we try to find a new place neither one of us haven’t been to before. It is a vacation for all of us.
My Dad always says, “Cash is King” and travels with a big wad of cash during the trip. One look at his money clip and I say, “ you are so Dave Ramsey, Dad.
While I believe in not getting into credit card debt, I have about three credit cards I always use and I rarely have cash.
If you like to travel and get free perks, Cash is not King when it comes to Travel Rewards.
Some call it Travel …..what is that word? Oh, yes hacking. They call it Travel Hacking. I remember thinking it was such a weird term and I never considered myself a hacker. I’m not really that great with technology but I have been using my credit card rewards for plane tickets before I Phones became popular. These days everyone seems to be a travel hacker, well almost everyone except my Dad.
We always get into a debate about cash vs. a credit card at the dinner table. Well here is my argument on why you should use a credit card instead of cash when you travel. Here are eight great reasons why Cash isn’t King when it comes to travel rewards.
# 1 You are Protected when you travel
If you get picket pocketed and you have cash, it’s gone. You probably aren’t going to get it back. You have to wish them well and figure they needed the money more than you.
The beauty of only having credit cards is that if they are stolen, you just have to call the credit card company and report them stolen.
When traveling to Brazil someone did take my credit card number and use it. When I got home from my trip and looked at the statement several purchases I never made were on it. I called American Express and filed a complaint and the purchases were taken care of. The protection that a credit card can offer when traveling is an added value protection.
Tip – bring more than one credit card and keep one in the hotel safe and one in your wallet so you have a back up if one gets stolen.
#2 Travel Perks of Credit Cards
Credit cards with travel rewards have additional travel perks too. Read your credit card booklet or sign in online to learn about your added travel perks. Things like Trip Cancellation Insurance, Car Rental Insurance, Airline Fee credits, Baggage Insurance, and Airport Lounge Access might be included. I love the $100 Credit Airline Fee perk on the American Express Gold Card all you have to do is select one Airline each calendar year. When you pay for bags on that airline you get a credit on your statement. My Chase Sapphire Preferred card comes with a Trip delay and interruption insurance. Don’t forget to read about your perks you never know when you may need to use them.
#3 Travel Rewards
Bonnie: So is your hotel free tonight?
Dad: No
Bonnie: Well it could be if you used your credit card.
Yes, I am obsessed with finding travel deals using travel rewards points. Companion Pass status on Southwest Airlines is the best thing right up there with gelato at the Trevi Fountain. Oh and let me tell you how many amazing places I’ve seen in the world by using miles for plane tickets. You get travel perks just for your normal day to day spending.
At least my Dad does sign up for the hotel loyalty programs now. I was telling him about free perks like free bottled water and wifi just for being a loyalty member. They even try to stick with the same hotel chain now. At least it is a start.
Travel Tip- When using your rewards, transfer your reward points to a transfer partner. This is where you find better redemptions than just booking travel directly with your credit card company. You may even find a transfer incentive to gain even more rewards points. Currently, Hilton is doubling the points you transfer over from American Express and I’ve been staying at Hilton properties more often because of this reason.
#4 Credit cards are thinner, lighter than cash and less germy
They say money is one of the dirtiest things because it goes through so many hands. Think of all those germs! The one thing I like about carrying credit cards is that my wallet is lighter and thinner. Last year when I traveled to Australia everyone used Tap. I didn’t see anyone even exchanging cash in the Land of Oz. Everyone was tapping away and it is so easy.
#5 The power of multiplying the points of your spend- earning more double and triple points on your dollar
All my friends love the American Express Platinum card but I love the American Express Gold card where we earn 4 X points from dining at US restaurants, and US grocery stores. We also get 3 X points on flights. Another great card is my Chase Sapphire Preferred card which offers 2 X points on all travel and dining expenses. Do you love to shop? Don’t forget to check out Rapid Rewards shopping online if you have a Southwest Rapid Rewards credit card. You can earn more points for airline tickets just by shopping at your favorite stores.
#6 Purchase tracking knowing where your money goes
Do you ever just wonder where your money goes? Exactly! When I have cash it disappears like a magic trick. Where it went, I haven’t a clue. When I use my credit card, I can sign into my account and see where we spend most of our money. You can even set up budget alerts to help stay on a budget. Using credit cards you can track your spending easier.
#7 No Foreign Transaction Fees
The majority of travel credit cards offer no foreign transaction fees. This is a big perk over using bank and debit cards. We take out little amounts of currency and use our credit cards extensively when we travel. It is a nice perk not to see those pesky foreign transaction fees that really add up. When traveling abroad use a credit card that doesn’t charge these fees.
#8 Getting a better Exchange Rate
I’ve never been great at Math. Using credit cards while traveling is a breeze instead of having to figure out the exchange rate because using a credit card you get the best exchange rate. When purchasing always choose the currency of the country you are traveling instead of your home county if there is a choice.
Travel Tip- Get the EX currency App on your phone before you travel and you never have to figure out exchange rates in your head ever again.
My personal favorite travel cards
Southwest Airlines Rapid Rewards
My husband is loyal to Southwest Airlines and it is his first airline choice for business trips. He gains Rapid Rewards flights since he travels a lot. We have the Southwest Rapid Rewards Premier credit card. The reason we like Southwest Airlines is because we can earn Companion Pass Status with a combination of his flights and credit card reward points. When we are short points towards the end of the year we use Rapid Rewards Shopping and book hotels on Rocket Miles to give us the additional points we need to keep our status. Companion Pass status is one of my favorite statuses because I can fly with my husband whenever he travels for the taxes which is about $12.60 round trip for anywhere in the US.
American Express Gold– Rose Gold has got to be my favorite color in the world! American Express offers a metal rose gold card that is classy and stylish. The American Express Gold will have you jet setting around the globe in no time. It was the first card I started travel hacking with. I’ve been able to score flights to South America, Europe, Australia, Thailand, Canada, and French Polynesia by transferring miles to their transfer partners like Air Canada, Air France, Delta, and British Airways.
Chase Sapphire Preferred It was the 50,000 point bonus I was originally after when I got this card and you get 2 X points on all travel and dining. This includes things like train tickets, ferry tickets, hotels, and restaurants. I use this card frequently when abroad and not everyone takes American Express. United Airlines is a travel partner and since I live in Colorado, United offers direct flights abroad to the places I want to go.
Favorite Points Gurus to follow
Traveling using credit card reward points is fun and I like to think of it as perks you get just for spending the money you were going to spend anyway. If you love traveling and want to know about the best travel credit cards and reward redemptions follow these people that travel hack professionally.
I’m sure everyone has heard of Brian Kelly by now. His TPG website offers a wealth of information about traveling. It is the one email account that I actually open the emails because you get the latest and updated travel news.
I used this site extensively to plan my trip to French Polynesia. You know those dreamy over water bungalows you see in magazines? Using the information on this site I was finally able to score one of those pricey bungalows using IHG rewards points. This site even offers a beginners section if you are a newbie. Hey Dad, check this page out, please!
I’ve been an Always 5 Star fan for years now. If you follow her you will see 5 Star hotels all around the world. I met her for tea and we talked about our favorite travel credit cards. She likes the American Express Platinum card for the pop-up events, rewards points, and airport lounges. She focuses on luxury travel and offers tips on how to get upgrades and important travel tips that are good to know.
I’ve always loved getting good deals. The way I see it if you are spending money you may as well get some perks with your credit card spending.
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Happy Travels,
Bonnie
