4 Advantages of Using a Credit Card for your Dream Vacation - Kotak Bank

26 FEBRUARY, 2020

Nothing beats the feeling of finally taking the much-awaited exotic vacation. Dream trips are not only awe-inspiring, but can be highly transformative too. They bring you joy and memories to cherish for a lifetime. However, there is no denying that going on a dream adventure can be an expensive affair. You may have saved-up for a long time, missed those shopping sprees or even considered a personal loan. Saving-up and getting a loan are good options, but you should also spend smart.

When used wisely, a credit card can leave you with several benefits while enjoying your dream vacation.

Here are the top 4 advantages of using a credit card:

Enjoy convenience – Irrespective of where you plan your dream vacation, it is unsafe to travel with a pocketful of cash. The small plastic piece of your credit card will let you pay wherever and whenever you need. You do not have to worry about having enough cash in your wallet or misplacing it while you are around the place. Additionally, it is better suited when making big payments such as that for flights and hotels.

Better exchange rates – When on your trip, you can be boggled by the exchange rates and commissions charged by local merchants. You do not want to find out later that you have been charged a much higher rate. Using a credit card for your trip-spends will ensure that you avail of the current rates as provided by the card issuer.

Sign-up bonuses – There are numerous credit cards that you can pick from and each comes with competitive sign-up bonuses. From providing miles and points that helps you to save on your travel to making payments at various retail stops and dine-in partners.

Rewards and cashback – Depending on your credit card type, you can access exceptional rewards while making foreign spends. Card issuers usually have tie-ups with hotels, restaurants and airlines and this allows you to enjoy cashback and discounts. There are several loyalty programs as well that get you rewards when you make credit-card payments at the same vendor. However, you may have to spend a minimum amount to activate the available points.

The trick lies in using your credit card spends wisely. It carries a host of benefits but can also lead you to lose track of your spends. Thus, you should be cautious or you could end up in debt trap after a beautiful dream holiday.

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