Are you a frequent traveller and want to save on budget? Then, travel credit cards are a great choice you can consider. Travel credit cards provide you with special discounts and reward programs to choose from so that you can make the most of your travel without compromising on luxury.
In this article we are going to understand how you can maximise rewards from your credit card and have a luxurious travel experience without exceeding your budget!
In order to maximise your rewards from your travel credit card, you can follow these simple steps:
Travel cards offer you with exclusive benefits and rewards on your travel bookings and more. It is very important that you explore different cards offered by lenders and compare them with your needs. If you are a frequent traveller, you can choose a travel credit card as these cards provide you with exclusive benefits on flights, lounges and hotels.
However, if travelling is not your primary objective and you are interested in everyday spending then you may consider other credit cards which can give you better offers on cash backs and everyday transactions.
You need tokeep a track of the reward points you earn and their date of expiry so that you can utilise them well in time. Though many rewards do not have an expiry and get carried on, some rewards have limited validity and may expire if you fail to redeem them beforehand.
Lenders often partner with various brands and companies to provide you with limited time offers and discounts. To maximise your rewards, you must keep yourself aware of the deals launched by the lender and keep a note of the time period as well. You can align these offers with your purchases and get the most out of it.
Many credit cards offer you the option to use the reward points to pay your credit card bill or redeem them against flight or hotel bookings. Hence, it is important you understand your need and financial situation before redeeming your reward points. If you are planning for a trip anytime soon, then you can redeem your points and save your money on the bookings.
However, if for some reason you are unable to repay the bill or are falling short of funds, then you should use the reward points for repayment and save yourself from debt trap.
What is better than having your credit card spending limit increased. Well, this can be easily achieved if you continue to pay your credit card bills on time and avoid making any defaults. Lenders carefully analyse your spending habits and repayment regularity.
It is advisable to always pay your credit card bill in one go and not in instalments as this will attract high interest rates and may lead you to more debt which you can actually afford to repay. Hence, to keep using your credit card without any hindrance, you should be regular in repayment of your credit card and build a good reputation with the lender.
Reward points can be tempting indeed. However, this can also lead to excessive spending from your credit card which may end up being a nightmare for you. Hence, you should be aware and mindful of your spending habits and not fall into the trap of excessive spending. With moderation and right financial planning you can maximise your travel reward points and avoid getting into a debt trap.
