WHERE TO NEXT

It sounds too good to be true, right? But I recently flew from Australia to London for only $300, and you can do the same with smart credit card use!

I know what you’re thinking…Credit Cards are bad and get you into debt. Well in some sense, you are not wrong. However, if you are a smart and safe spender, credit cards can actually be used to help fund your travel and take a lot of the costs off your plate with their numerous perks!

Credit card perks go far beyond just earning points; they offer a host of benefits that can save you money and elevate your travel experience. Whether you’re looking to fly for less or just make your trip more enjoyable, here’s how you can use credit card benefits to fund your next adventure.

The Power of Rewards Points and Miles

The secret to scoring a $300 flight lies in maximizing rewards points and miles with Frequent Flyer programs. And no, you do not have to be a ‘Frequent Flyer’ in order to join any Frequent Flyer programs. I don’t mean paying for a membership either. A lot of credit cards and even program partners often come with a free or discounted membership to these programs!

Here’s how points = flights:

Sign-Up Bonuses:

I started by applying for a travel credit card that offered a huge sign-up bonus. After spending a required amount within the first few months, I earned 50,000 points. Many people will continuously do this as a trick to get bonus points. Sign up, spend the required amount, get the points, cancel, sign up to a new one, repeat the process. Of course these sign up bonuses can be difficult to achieve if you are not a big spender, but they are not the only ways to earn points!

Strategic Spending:

The easiest way to earn points is to use your card! That’s it, simply just spend. I made sure to use my credit card for everyday expenses that I would have made regardless of a credit card. Things like groceries, dining out, clothes shopping, anything really that I would spend on, especially where I could earn extra points in these categories. Sometimes there will be offers running to earn bonus points per $1 spent with frequent flyer partner programs! I am also a member of a points collecting Facebook Group which helped alert me when offers that were relevant to me were running. Taking advantage of these helped me rack up more points faster without increasing my overall spending.

Transferring Points:

Finally, how I spent the points to get that $300. Instead of booking through the credit card’s travel portal, I transferred my points to a partner airline’s frequent flyer program. This gave me more value for my points and reduced the out of pocket cash I had to pay for the flight. Now please keep in mind, points will not cover the entirety of the flight. You will not get completely free flights. What you will get, is a reward flight that paying with points, will cover the majority of the costs and leave you only to cover taxes and fees. That’s it! As well as reward economy flights, you can also use this points on reward Business Class and First Class flights. Of course this will still mean spending more points and more out of pocket, however, it won’t even come close to the amount you’d pay out of pocket if you were wanting to book an upper class flight up front.

With this process, in the end, for my flight to London, I paid just $300 (one-way),out of pocket to cover taxes and fees. A little planning and patience can really make a big difference!

Now let’s get into other benefits that come with certain Credit Cards that can help fund your travels! Please keep in mind, not all cards will have these benefits and will often require cards with some form of annual card fee. Please make sure to do your own research when deciding on a credit card!

Travel Insurance

A hidden gem of travel credit cards is the travel insurance they offer, which can save you money and headaches if something goes wrong. and will cover you for things like:

• Trip Cancellation/Interruption Insurance: If my plans changed due to illness or a natural disaster, I would have been reimbursed for any non-refundable travel costs.
• Lost Luggage Coverage: If my checked bag had been lost or delayed, the card would reimburse me for essentials like clothes and toiletries until it was recovered.
• Travel Accident Insurance: In the unlikely event of an accident during my trip, the card’s travel insurance provided coverage for medical emergencies and accidents.

These insurances come as a complimentary bonus for your trips as long as you ensure to use your credit card to pay for the trip. This will already save you money and time by not having to sort out travel insurance which can often be expensive.

Although the travel insurance is complimentary, always make sure to do your research into the insurance provider to ensure it suits your needs for your travels.

Airport Lounge Access

Anyone who has endured a long layover knows how draining it can be and how gross you can feel after a long flight. Luckily, some credit cards will offer complimentary airport lounge access, which allows you to relax and refresh in style without needing to upgrade to Business or First Class. Most premium travel cards include memberships like Priority Pass, giving you access to thousands of lounges around the world. While others may only provide you with one or two lounge passes a year.

In the airport lounges, you can enjoy complimentary food, drinks, Wi-Fi, and even a quiet place to rest and freshen up with a shower.

Keep in mind, not all airport lounges offer the same amenities and not all lounges may be available with your provided passes.

No Foreign Transaction Fees

This one has become a must have when choosing a credit card! If you’re traveling internationally, foreign transaction fees can quietly drain your budget fast. These fees typically add 2-3% on every purchase you make abroad which may not seem like that big of a deal, but boy can it add up. Thankfully, many travel credit cards, including mine, waive these fees, so you can swipe your card abroad without worrying about added costs.

This is such an underrated benefit in our opinion, because it means you don’t need to go through the trouble of ordering a multi currency or travel specific card, AND you can still earn points with your everyday spending overseas to help fund your next adventure!

Rental Car Insurance

Although we don’t often rent a car for our trips, it is worth noting that many travel credit cards offer rental car insurance when you pay for the rental car with your card. This benefit can save you the cost of pricey insurance from the rental agency, while still giving you peace of mind on the road.

If you conduct some research of your own, some credit cards can even offer discounts on certain car rental companies.

Other Types of Cards and Accounts That Offer Travel Benefits

While travel credit cards are the most common way to score these points and perks, they are not ideal or achievable for everyone. Not to worry, credit cards are not your only option for travel perks. Some alternatives to credit cards can be :

• Premium Debit Cards: Some banks offer debit cards that come with travel perks, including no foreign transaction fees and airport lounge access, provided you meet certain requirements which can vary based on the card provider.
• Prepaid Travel Cards: These cards let you load money ahead of time and often come with benefits like purchase protection or emergency cash access. Just be sure to read the fine print, as some may have fees for loading or withdrawing funds.
• High-Yield Savings or Checking Accounts: A few financial institutions offer travel perks such as discounts on hotels or flights, and concierge services. However, they do typically require higher account balances or deposits so make sure to do your research and choose what best fits you.

On occasion, some of these cards and account options will even allow you to earn points. Although you will not earn as many points as you would with a credit card, they are definitely an option to look into even as an additional way to receive travel perks.

The Dangers of Credit Card Misuse

I know we’ve spoken highly on credit cards in this post and yes, while credit cards can be a powerful and simple tool for travel, they also come with huge risks if you’re not careful. It is important not to treat a credit card as free money and to always keep on top of your spending. If you decide a credit card is right for you, here are some potential pitfalls to watch out for:

• High Interest Rates: If you carry a balance on your credit card, interest charges can quickly negate any rewards you’ve earned. Always try to pay your balance in full each month to avoid hefty interest fees.
• Overspending: Chasing rewards can sometimes lead to unnecessary purchases, pushing you into debt. Stick to your regular budget and only use your credit card for purchases you can afford to pay off. Be aware of spending on things you do not already have the funds for.
• Impact on Your Credit Score: Using too much of your available credit or missing payments can damage your credit score, making it harder to qualify for future loans or credit cards. Monitor your credit utilization and always pay on time.

By taking full advantage of credit card benefits, you can cut down travel expenses by hundreds of dollars. The key however, is to be smart with your spending, make the most of rewards points, and not to overlook the additional perks like travel insurance and lounge access.

With a little planning, you too can turn everyday expenses into unforgettable travel experiences—just remember to use credit responsibly and avoid the traps of overspending and getting into debt. If credit cards aren’t your thing, consider some of the alternative cards or accounts that offer similar perks.

Please ensure to conduct your own research and not to base your decision entirely off what you have read here. It is important to choose what is appropriate for your personal habits and needs as we will not be held responsible for anyone’s negative credit card misuse.

Spend wisely and Happy Travels!

We hope you too book a bargain adventure!