Should You Use Your Credit Card to Pay for Vacation Expenses?

I hate to admit it, but I am one of those people who uses my credit card for everything, even for a $1.50 cup of coffee. But is it smart to pay for all vacation expenses, from airfare to excursions, with a credit card?

In most cases, the answer is YES.

Using a credit card to pay for your trip is both convenient and beneficial.

Credit cards offer you two big incentives when you use them to book travel: points and protection. Not only can your purchases earn you points or miles toward future travel, but you’ll be better taken care of if your vacation doesn’t go as planned.

Plus, your vacation spending can earn you rewards that can be redeemed against future travel purchases. If you travel often, look into credit cards that offer travel rewards.

If you’re booking a travel expense like an excursion, pay for that with your credit card, too. If necessary, you can dispute a charge by a company that fails to deliver on what you paid for.

Paying for a travel expense with a credit card can protect your purchase. It’s important to read the fine print, because different credit cards offer different amounts of coverage. Look into what your card offers before you book your trip, so you’re not caught off guard while on vacation. You also want to know what the benefits are, such as if you receive a special perk, such as a discount with certain merchants or a freebie that you can collect at boutiques or tourist centers.

If you are leaving the country, alert your credit card company before you so your card isn't flagged for fraud. But don't worry about using your card in another country - it's actually a better way to make payments than using cash.

Using a credit card overseas helps streamline currency exchange rates and allows you to track the rates. But don't use your credit card at an ATM in another country to get extra cash. You'll be hit with sometimes hefty fees that will include a cash advance fee, exchange fee AND an ATM fee.  In this case, use a debit card or better yet, be sure that you have enough cash for cash-only purchases before you leave home and use your credit card for everything else.

Be sure to keep all receipts while you are traveling. We bring a Ziplock bag and dedicate one pocket of a suitcase as the receipt pocket. Once home, remove the Ziplock bag and review the credit card statement to make sure everything matches up.

If you are traveling for work, the credit card statements provide a handy reference for anything that is tax deductible.

So check your card to see what travel incentives it offers, save up some points and turn everyday purchases from gas to groceries into an amazing getaway.