Credit Card Blog

When you’re in the midst of preparing vacation plans, the cost will certainly be at the forefront of your thoughts. It’s best that you not carry a large amount of cash, so set that cash aside and put it towards credit used for vacation expenses. Using a credit card for purchases such as lodging, shopping, eating out and car rental can be a great money saver. Some of the best priced deals are found on the Internet where you can find lodging packages that include discounts on area restaurants, events, and theme parks.

Lodging can be unbelievably inexpensive if you make your reservation online by credit card. Websites such as Expedia.com, CheapHotels.com, and PriceLine.com save considerable amounts of money. By taking advantage of these website offers, you may never pay over $80 for a room.

Car rental is a popular choice for those who use the airlines to reach their destination, and then rent a vehicle there. Once again, making reservations online in advance can not only save money but also ensure you reserve the vehicle you want, rather than getting what’s left over.

Whether you’re flying or driving, you can only take so much food with you on vacation. Remember to use any package discounts you may have received with your lodging reservations. Check in advance for your favorite restaurants in the area to help choose ahead of time where’d you like to eat.

Activities such as theme park passes are items that can be purchased online in advance. Making these purchases in advance also affords you to take advantage of pre-season discounts or special holiday offers. Many attractions offer Family Packages which may include dining, shopping or lodging discounts.

Taking your vacation on credit can take away the worry of cash on hand so you can truly enjoy your time. Lodging, car rental, airfare, food, and entertainment are only a few of the ways to use credit for your vacation expenses.

If you plan to travel overseas, you might be wondering which credit cards you should use. Between high exchange fees and surcharges, some credit cards don’t do much to add to your travel experience. USA Today recently listed their top picks for foreign purchases.

Lowest Foreign Currency Surcharge

Capital One: 0%
American Express: 2.7%
Bank of America: 3%
Citibank: 3%
Diner’s Club: 3%
Wells Fargo: 3%

Capital One came away the clear winner. That covers purchases made in foreign currency, but what about purchases made in US dollars? It appears that Bank of America, Citibank, and Diner’s charge the same amount, even if there is no actual currency exchange. American Express and Well’s Fargo don’t add a surcharge for dollar billing.

In keeping with their 2001 advice for foreign travelers, USA Today still recommends using debit cards for cash and credit cards for large purchases. Since traveler’s checks and currency exchanges lose 5-10% of their value in fees, stick with the plastic when you travel abroad.

For the full list of traveler-friendly credit cards, go to USA Today’s web site.

Travelers who are used to using credit cards to book flights, hotel rooms and rental cars will not flinch when it comes time to make in-flight purchases. United Airlines is imposing the credit card-only transactions on all trans-Atlantic flights as well as those to Brazil and Argentina. Now, there are few flights with this carrier that do accept cash as they already rolled out this same program on domestic flights.

Avoid Debit Cards - Either credit cards or debit cards are allowed for purchases on these flights, but if you are travelling abroad, you need the added protection of credit card services in case of theft of your cards, so taking along debit cards is not a good idea.

Use Travel Rewards Cards - Add to your points and miles totals by making purchases during flights. It’s a great reason to use your card in this way. The

Security Assistance – Using your credit cards on international flights also helps keep your money secure as there are card protection programs in place by most all card issuers.

Using credit cards for travel purposes is probably the best fit for the two entities that can be found. Add to that the travel rewards programs, and you have a marriage made in heaven. Be sure to keep your cards safe and carry a back-up card in a different location in case your primary card gets stolen or lost. Using common sense approaches like these will help your travel be more enjoyable – even when using your card for in-flight purchases.

The practice of lowering credit limits on card holders across the board has affected many customers with good credit. Since then, they have learned to be more aware of their credit limit. Making these tasks a common activity every week before you shop and use your card will help.

Check Your Limit – Make it a point to check your credit limit regularly. Once per week is not too much. If you have Internet access, you can view it when it is convenient. Tie it into another online activity that you already perform on a regular basis, such as checking your email. Or, most card issuers allow you to check your balance and other items via a phone call to their toll free customer service number. Put the number on speed dial and use it often.

Pay Down Your Balance – Work hard to pay down your balance and keep it as low as possible. While this will not keep the creditor from lowering your limit, it will help if they do by making sure that you have enough of a ceiling to absorb such a decrease.

Protect What You Have – Learn to use your credit card wisely and pay more than the monthly minimum which will help protect what you do have and make it easier to manage your balances.

Smart card holders adjust their activities to make sure they are not caught in the tow of card issuers across the board adjustments to accounts. The days of running your credit card accounts on auto-pilot are over.

If you’re a fan of credit card travel or dining rewards programs, you’ll want to become a member of the FlyerTalk forums. It’s an interactive community that lets people share information about rewards programs and travel perks they’ve gotten from various rewards cards.

In the forums, you can read from real people how they’ve been able to maximize their points and miles. Some people discuss credit card retention benefits – where they’ve been able to get extra rewards or points by calling a certain phone number or telling a customer service representative they planned to cancel their credit card account.

Unlike the credit card websites and blogs, this forum is made up of real people who use the various credit cards and participate in the rewards programs. The information you gain from these forums should be without bias or sales agenda, which makes it a little more trustworthy than information you find on a credit card company’s website.

You can use the community for free by creating an account. They welcome you to read the posts and get comfortable and then begin asking questions or sharing information as soon as you feel ready. While they can’t guarantee the information found on the site is 100% accurate all the time (after all, people are posting it and there is a potential for error), you can find out about some great deals, contests, and offers for reward program benefits by becoming a member.

United Airlines flyers, take note: the era of the “cashless cabin” has arrived. Beginning March 23rd, United will no longer accept cash for onboard purchases. This move has paved the way for other airlines who will soon require plastic for purchases made during flights.

The arrival of a cashless system has been a long time coming. United said that it has tested this system over the past year, and has received a positive response from customers.

This change takes place soon after United announced that it will launch a new credit card with MBNA. United wants customers to use the credit card for onboard purchases so that they can take advantage of competitive interest rates and reward points.

Credit cards are a good finance option for travelers. Unlike cash purchases, credit card transactions offer fraud protection. They also protect consumers from merchants who don’t deliver the goods they promised.

It looks like the idea of a cashless cabin is taking hold; Southwest and Alaska Airlines have announced that they will soon follow suit. If you’re preparing to fly, brings your cards along for safe and convenient purchase power.

When traveling abroad, proper planning is required in order to minimize the fees that can accrue during your journey. Hopping on a plane with just your credit cards in hand is not a very good idea. Not only will you put yourself in a bind because of places that do not accept credit cards, you will pay high fees on top of that. Here’s how you can avoid this and have a less expensive trip at the same time:

Get a Card with No Overseas Transaction Fees. There are a few cards out there which charge no overseas transaction fees. You can apply for one of these cards which will help you finance your trip and thereby avoid expensive fees. These fees can range from 2 to 3 percent to EVERY overseas transaction. Keep this in mind, too: you can get hit with these fees if you are purchasing something overseas from home and the company processes your purchase through a foreign bank.

Take Some Cash. The old advertising slogan “don’t leave home without it” can apply to good old-fashioned cash, too. Some places you encounter in traveling the world may not accept credit cards. And if credit cards are all that you have, you will pay expensive fees in order to get cash from an ATM. So why allow that to happen when you can easily plan better by taking some cash with you.

If you combine the above with penny-pinching activities you will have a much less expensive and more enjoyable trip all around.

An increasing number of airline frequent flier mile programs are becoming more complex and less rewarding.  For instance, changes to Delta’s frequent flier program, SkyMiles, has resulted in an increase in fees charged for various situations and generally making it harder to redeem your miles for free flights.  For example, Delta charges:

• $25 for domestic flight redemption as a “fuel charge” and $50 fuel charges when redeeming your rewards on international flights
• Fees ranging between $50 and $150 for booking within 21 days of desired flight date
• An additional $25 fee if you have to fly any part of your trip on another airline for any reason
• Miles expire sooner

Delta isn’t the only one making it a little harder to use earned rewards.  Citi and the ThankYou points network has made some changes to their rewards program, as well, including:

• a new fixed flight or variable flight option for redemption.  Fixed flight option requires a set number of miles to redeem for flights, but requires a Saturday night stay in a hotel and booking the flight at least 14 days in advance, while the variable flight option requires more points for the same flights, but does not require the Saturday night stay or booking 14 days in advance. 
• Variable flight options through the ThankYou Network are actually run through Expedia.com

It may be easier to use credit cards with rewards redeemable for flights rather than stick with a certain airline’s program.  Capital One offers the No Hassle Miles Rewards card that lets you earn points redeemable for flights on any airline.

As of the end of July, there were only a small handful of major airlines that didn’t accept credit cards for on-board purchases. Now one of them has seen the light! On September 9th, Southwest Airlines will be taking plastic. Passengers won’t have to dig out their dollar bills any longer. They’ll be able to buy their energy drinks and cocktails with credit cards.

Southwest Airlines has joined the movement toward cashless air travel. The company recently posted an announcement on its web site, urging passengers to relax and keep their cash. According to the announcement, Southwest will still provide freebies like soft drinks and snacks. For premium purchases such as beer and wine, a single swipe of the passenger’s credit card will suffice. In fact, it’s required. The airline will no longer accept cash for these onboard purchases, but they will take debit cards and drink coupons in addition to all major credit cards.

Now, if we could just convince Northwest and United Airlines to follow suit…

Jet setters beware: those crystalline waters you dream of are often swimming with predatory scammers. And travelers are their prey of choice.

Why have travel scams become so popular? The payment terms have a lot to do with it. Scammers can offer properties, accommodations, and special activities that require payment in advance. And since anyone can make a professional-looking web site that accepts online payments, many vacationers have parted with their money only to find themselves stranded in paradise.

What can a traveler do to protect themselves? Pay with a credit card. Never use your debit card to purchase travel deals. Debit cards don’t have the same chargeback protection that credit cards do. If you buy with your debit card, your money is simply gone – whether or not the seller delivered the services they agreed to deliver. By using a credit card, you ensure that you won’t have to pay for empty promises.

One word of caution: chargebacks don’t protect you against shoddiness. Even if those 5-star accommodations turn out to be less than stellar, you’re still obligated to pay for them.