7 Reasons to Use a Credit Card Instead of a Debit Card When Booking Travel

Credit card vs debit card booking travel

Booking travel is arguably one of the most exciting parts of planning your next vacation – but it can also be the most stressful one! And, if you aren’t careful, you might run into pitfalls such as unsecured transactions, high foreign transaction fees, fraudulent purchases, and unexpected expenses.

Luckily, you can avoid all this and enjoy an even more stress-free travel experience by using your credit card. Here are just some of the reasons to prefer this payment method over cash or debit cards!

Get Credit Card Rewards

Credit Card Rewards

One of the main reasons why you should use your credit card when booking your next vacation is that you’ll be able to accumulate exclusive rewards.

Indeed, if you have a travel credit card, airline tickets, hotel stays, and car rentals are often considered qualifying purchases.

What’s more, leading issuers are leading the way to better reward programs. For example, with a crypto rewards credit card you’ll be able to boost your investment portfolio and tap into the unique capital gain potential that crypto offers – all of this while booking travel!

You Can Take Advantage of Discounts and Perks

As well as gaining rewards, using your credit card to book travel allows you to take advantage of the perks you have already earned.

Depending on your account usage, some of these benefits might be limited to minor discounts on car rental or transportation deals.

However, in some cases, booking travel with your credit card can grant you premium benefits such as exclusive airport lounge access, free night stays, and discounts on vacation packages.

Make sure to review your credit card contract to understand how to take advantage of your credit card deal.

Credit Cards Purchases Offer Protection Against Fraud

When traveling, you might be more exposed to risks such as fraud – and, for more than a reason! After all, you might be using a currency you are not familiar with, completing a high number of transactions, and dealing with local POS and ATMs.

Luckily, when using your credit card instead of debit cards or cash for your travel transactions, you can enjoy the higher level of consumer protection that this payment method offers.

Consider reviewing your contract before your vacation to know exactly what to do to recoup your money without delays in the event of fraud.

Some Credit Cards Issuers Provide Travel Insurance

Alongside payment protection policies, credit cards also offer a degree of travel insurance.

Some of the most common types of coverage included in credit card accounts include:

  • Trip cancellation reimbursements
  • Baggage protection
  • Travel assistance
  • Protection against credit card theft
  • Trip delay insurance
  • Travel accident insurance
  • Perks such as reimbursements and free hotel stays if your trip is delayed or canceled

If you are unsure what protection your credit card offers and what type of travel insurance cover you’ll need to purchase to ensure 360-degree coverage, review your credit card contract or get in touch with your credit card issuer.

Using Your Credit Card Can Help You Build Your Credit

Credit cards advantages

The last thing you’ll want to think about when booking your much-deserved vacation is how to improve your finances. However, if you are rebuilding your credit score or getting your finances in order before asking for a loan, every little help.

Luckily, according to Experian, an international leading Credit Reporting Agency, using your credit card for expenses you can afford is one of the best ways to build your credit score.

Easily Keep Track of Your Budget and Expenses

Whether you are planning a business trip or a family vacation, keeping track of your expenses when booking travel is never easy – especially if you are using more than one payment method.

According to statistics, a staggering 36% of Americans get into debt to keep up with unforeseen or unexpected travel expenses.

You can avoid all this by using your credit card as a single payment method when booking your next trip. This allows you to view all of your transactions in one place, check statements for mistakes, and manage your money through convenient mobile banking apps.

Avoid Hefty Foreign Transaction Fees and Unfavorable Conversion Rates

Woman vacation travel by car

Using your credit card instead of cash or debit cards is a smart choice while booking travel and beyond.

Indeed, credit cards offer convenient conversion rates when paying in the local currency, and they allow you to avoid the foreign transaction fees that many debit cards apply.

Just make sure to have the right card to make your travel easier and more stress-free!

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