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Five Tips to Avoid a ‘Break the Bank’ Summer Vacation
Special to The Truth
Vacations are good for
you. But they can also be tough on the wallet.
For more than one-third of
Americans, the cost of a vacation will be one of their
largest expenses in the coming year, according to Wells
Fargo’s recent “How America Buys and Borrows” survey.
How can you avoid vacation
sticker shock? One option is sitting in your wallet, as
certain credit cards offer rewards with virtually every
purchase.
Here are five tips for how
you can use your credit card to turn your vacation dreams
into reality.
• Read the terms and
conditions thoroughly and understand how you can earn and
redeem rewards. Some cards offer cash back while others
offer points. Some credit cards allow customers to redeem
for a variety of options, while other cards -- such as those
offered by some airlines and hotels -- connect you to reward
redemptions for their specific product. Know what, if any,
fees or charges occur when redeeming and whether your
rewards ever expire.
• Some consumers track
rewards and redeem them regularly. Others rarely think about
them. If you fall in the second category, check your rewards
balance. You may have earned enough rewards to offset
vacation costs like airfare, hotel stays or gift cards to
merchants you plan on visiting while vacationing.
Alternatively, you may prefer to redeem your rewards as an
account credit and use the cash while traveling.
• The average vacationer
spends just over $1,300 for travel, including food, lodging
and transportation, estimates the U.S. Bureau of Labor
Statistics. By responsibly using your rewards credit card
for vacation costs, rewards can add up. You can redeem them
later -- perhaps, for next year’s vacation!
• Traveling with your
credit card offers a safer way to pay because if a card is
lost or stolen, a quick call to your bank can stop charges
to your account. In addition to rewards programs, many cards
offer little known perks that may help make your travel
smoother. For example, some credit cards offer 24/7
concierge services that can help you plan your trip or even
make dinner reservations.
Your card may also offer
rental car insurance, no-fee currency conversions,
competitive currency conversion rates, and travel
protections like insurance for lost or damage luggage. To
learn more about these benefits, read your credit card
agreement.
• Look for special travel
offers from your rewards program. Also, check to see if your
credit card offers special travel deals that come with
additional rewards from specific retailers. To learn more
about available offers, cardholders can typically check
their rewards program website. To review Wells Fargo’s
available offers, visit www.MyWellsFargoRewards.com and
www.MyWellsFargoRewardsEMM.com.
As you plan vacation, keep
budgeting and money management basics in mind. Be sure to
let your bank know you’re going out of town, and consider
using free tools -- like online banking or your bank’s
mobile app -- to stay on top of your finances. That way
you’ll come home refreshed, with no worries about having
derailed your financial goals.
Courtesy StatePoint |
