From seeking last-minute deals while travelling and splurging on lounge access at airports to paying full price for hotels – most dream vacations come bearing a hefty price tag. Well, a credit card can help plummet expenditures to a large extent while also upping the ante on luxury on your getaways.
However, homing down to the right card and knowing how to avail its benefits to the fullest is the key, and that is where we step in. Read on for tips and tricks on how to save money using credit cards and how to pick one that suits your requirements the best.
Easy ways to save money using credit cards on your holiday
Opt for a co-branded credit card
Co-branded credit cards or travel credit cards are a result of a collaboration between banks and travel portals, airlines or hotel/restaurant chains. Along with a cash-back facility, these cards also offer reward points that can be redeemed accordingly.
As per a Financial Express report, Bankbazaar.com CEO Adhil Shetty says, “If you’re using a co-branded travel card, you can get accelerated rewards for travelling with your preferred brand. You can use a combination of cards to maximise your rewards in order to cut down your travel costs. You can maximise your benefits if you know your credit card well.”
Some co-branded credit cards include 6E Rewards XL – Indigo Kotak Bank Credit Card, Axis Bank Vistara Infinite Credit Card and Etihad Guest SBI Premier Credit Card.
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Use reward points and free miles
Many credit card companies offer reward points and miles which can be used to book flights or hotels and mostly this method of payment saves travellers from paying the full tariff. In some cases, miles can also be bought and combined with earned ones to make your bookings more pocket-friendly. Don’t forget to keep a tab on the expiry date though.
Almost all credit cards offer reward points and free miles such as Axis Bank Miles & More Credit Card and InterMiles ICICI Bank Sapphiro Credit Card.
Utilise airport lounges and free baggage facility
Long layovers might be annoying for some but not for those with credit cards that have access to airport lounges. You can enjoy delectable meals at subsidised rates or even take a comfortable short nap while waiting for your connecting flight, or best — watch a movie using the high-speed internet facility.
Additionally, don’t fret about extra baggage while returning after a shopping spree on your trip. You can easily use the waived baggage fee option provided by your card, yes, that is also a perk with some cards.
Different cards provide different types of lounge access — quarter-wise, biannual or annual. Other than domestic and international lounges, some cards provide IRCTC lounge access in India too. For instance, the MakeMyTrip ICICI Bank Platinum Credit Card offers two domestic airport lounge access quarterly if one has spent INR 5,000 (HKD 476) in the previous quarter along with one IRCTC lounge access per quarter; or Axis Bank Vistara Infinite Credit Card which gives eight domestic airport lounge access annually (maximum two per quarter).
Choose cards with no foreign transaction fees
According to Investopedia, a foreign transaction fee “is a charge assessed by a financial institution to a consumer who uses an electronic payment card to make a purchase in a foreign currency. Foreign transaction fees usually apply to card purchases made in foreign countries while travelling, but they can also apply to purchases made online from your home country where the vendor is foreign and processes the transaction in its local currency.”
It is very important to own cards that have zero transaction fees for people going abroad frequently. While various cards have a foreign transaction fee of 1 to 3 percent, many have none, for instance, American Express® Gold Card or Citi Premier® Card.
Go for cards providing free travel insurance
If you have a card that includes travel insurance, you don’t have to pay for it separately and it covers expenses of non-refundable tickets too. This feature is helpful if you have to make last-minute cancellations owing to weather conditions or health.
One of the best examples of such a card is Citibank PremierMiles Credit Card which offers a large sum as air accident cover.
Six of the best credit cards to use for maximum savings
SBI Card ELITE
With an annual as well as renewal fee of INR 4,999 (HKD 475) each, this card is a must-have for all travel lovers. Other than redeemable vouchers worth INR 5,000 (HKD 476) from Yatra, you get complimentary Silver membership to Club Vistara which includes free upgradation apart from other interesting benefits.
The card also provides a Priority Pass Program complimentary membership, six complimentary international airport lounge visits in a year and two complimentary domestic airport lounge access in a quarter. In addition, card users also enjoy the lowest foreign currency markup charge at 1.99 percent.
Other SBI travel cards that can be a good choice include Club Vistara SBI Card PRIME, Air India SBI Platinum Credit Card, Etihad Guest SBI Credit Card and IRCTC SBI Card Premier.
Axis Atlas Credit Card
Frequent travellers can choose to go for this one as it offers 5,000 EDGE miles as soon as you make the first transaction within 30 days after the card is issued. It has an annual and renewal fee of INR 5,000 (HKD 476). This one is suitable for those who spend lavishly as it comes with attractive benefits based on the membership you wish to take — Silver, Gold or Platinum Tier. Additionally, on every INR 100 (HKD 9) spent on travel and hotel bookings, you get 5 EDGE miles (I EDGE mile = INR 1 (HKD 0.95) or 2 partner points).
Other than domestic and international lounge access, cardholders can avail of airport concierge services as well as pick-ups for hassle-free travel.
HDFC Bank Diners Club Privilege Credit Card
With an annual and renewal fee of just INR 2,500 (HKD 238), you can get an annual membership of MMT BLACK and more such benefits with this card. Primary and add-on members can get access to over 1000 lounges in India and the world with 12 complimentary airport lounge access annually.
Moreover, one can avail of the SmartBUY feature using reward points for hotel and flight bookings. These points can be converted to miles to make these purchases. You can also get complimentary Ola cabs as well as access to both domestic and international golf courses. What’s more? Enviable discounts at top-notch spas, salons, gyms and other wellness retreats. Although it has a markup fee of 2 percent, it gives a credit liability cover of over nine lakhs.
MakeMyTrip ICICI Bank Signature Credit Card
With no annual fee and only a joining fee of INR 2,500 (HKD 238), you can get hold of an appealing reward structure with 1500 MyCash as a complimentary welcome gift, along with MMT BLACK exclusive membership and an MMT holiday voucher worth INR 2,500 (HKD 238). Also, other than two domestic lounge access, you get access to a railway lounge and one international lounge (under Dreamfolks membership) in a year. And, there is good news for golfers as well, they can avail of two complimentary rounds at some of the finest golf courses in the world per quarter.
Citibank PremierMiles Credit Card
During the first two months after the card is issued, one can get 10,000 miles as a welcome gift after spending INR 1,000 (HKD 95) or more post-joining with a fee of INR 3,000 (HKD 286). With a reward rate of 10 miles for every INR 100 (HKD 9) spent on airlines and 4 miles for every INR 100 (HKD 9) spent on other transactions, this card suits all travel enthusiasts or those frequently travelling for work.
Although this card doesn’t provide international lounge access, it gives six domestic lounge access quarterly for the MasterCard variant and eight domestic ones quarterly for the Visa Signature variant. You can try the Citi PayLite feature to enjoy a Europe tour as well. Its air insurance benefit includes an air accident cover of INR 1 crore (HKD 9,51,934).
American Express Platinum Travel Credit Card
This card gives 10,000 membership reward points with a joining fee of INR 3,500 (HKD 333) and a renewal fee of INR 5,000 (HKD 476). It also offers Taj Expenses e-gift card and Taj Stay voucher as milestone benefits along with complimentary domestic lounge access and Priority Pass membership for access to international lounges. For every INR 100 (HKD 9) spent, it gives two membership reward points.
(Hero and featured image credit: energepic.com/Pexels)
Related: The Best Credit Cards For Airport Lounge Access
The information in this article is accurate as of the date of publication.
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FAQs (Frequently Asked Questions)
Yes, credit cards come with many benefits which help in saving a lot of money, not just while travelling but otherwise too.
Using a credit card is always better to save money. It has many benefits including cash back, reward points and so on.
If you choose your card wisely and make payments on time, you may get benefits including reward points, which can help you save a lot of money.
While apps like CRED analyse the pattern in which you spend and track suspicious activities regarding your credit card, they have their own set of pros and cons. For instance, although they send notifications for due dates, privacy of data is questionable according to experts.
You should not use your credit card when you haven’t cleared your balance, you are unaware of your credit limit, or you suspect foul play while making a payment.
As per ‘Forbes,’ it is absolutely fine to not have a credit card and pay all your bills using debit card and cash but if you go for one, you can get numerous benefits.
Written By
Pyusha Chatterjee
Digital Writer - Growth, TravelA journalist, Pyusha has previously worked with media organisations including The New Indian Express ..Read More
