Save on Travel by Making Wise Credit Card Choices and Eating with the Locals

office pictures may 2012 002Credit cards have become an excellent tool for saving money on travel. Many major credit card providers offer reward cards that provide 30,000 to 50,000 bonus airline miles after you charge as little as $3,000 to $4,000 over the first 3 months of opening the account.  They frequently waive the annual fee for the first year. If you don’t want to continue, and pay the annual fee for subsequent years, cancel the card before the end of the year when the fee is due.  Additionally, many travel cards have a generous rewards program that allows you to earn miles as you make purchases during the year.   Many travel cards also allow you to waive checked baggage fees and provide you with priority seating.

Some cards with an attractive introductory offer include Chase Sapphire Preferred, Capital One Venture Card and Citi/AAdvantage Platinum Select, among others.  A helpful website to compare the benefits and fees for various travel cards is creditcards.com/airline-miles.php.  Before selecting a new credit card make sure you fully read and understand the terms and conditions.  Credit cards opened to accumulate airline miles should only be used by those who pay off their entire balance every month.  This should not be considered by those who carry a balance from month to month.

When travelling overseas you should have at least one card that doesn’t charge foreign transaction fees.  Many credit cards assess a 3% foreign transaction fee on all international charges.  Some companies have begun waiving foreign transaction fees including Capital One Venture Card and Chase Sapphire Preferred, to mention a few.

When travelling abroad, a rewards card without foreign transaction fees is essential but there will be times when cash is required.  Use your ATM card to get foreign currency, it will provide you the best exchange rate.  Avoid exchanging U.S. dollars for foreign currency at exchange bureaus.  ATMs do charge a fee for every transaction so limit the number of transactions by getting as much money as possible each time you make a withdrawal.  Additionally, it’s prudent to carry at least two ATM cards, from different banks, in case there is a security concern and access to your account is blocked.

Once at your destination you can save money and enhance the authenticity of your visit by staying and dining off the beaten path.  Seek out family run hotels and restaurants that are local favorites. You can often save money by booking a Bed and Breakfast or vacation rental.  Booking a room at the last minute can also result in nice accommodations at a reduced price.  To find good restaurants, ask local residents for their recommendations.  Observe who is patronizing a restaurant and select one that is teaming with locals rather than tourists. Once you select a restaurant, stick with the local specialties and order food that is currently in season.