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Traveling simply means you want to take a much-needed break from the mundane routine.
A smooth flight, no-fuss spending, complete safety of your money while visiting tourist attractions, and a lot more add up to make a memorable vacay!
But, the main question is, how do you do that?
And, more importantly, are credit cards safer to carry over cash? Should you use cash or your credit card while traveling?
To get the answer to these and a lot more – below is an in-depth explanation of whether using a credit card is worth your peace!
So, let’s dive straight in to read the pros and cons to know the difference!
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There’s no way that the answer to such an important and complex question should be a straight “No” or “Yes.”
Therefore, to make things pretty much clear to you for your peaceful and relaxing vacation, let’s first start with the pros of using a credit card while you are on the road!
Did you know that your secured credit card offers points to be used when you travel around the world?
No? Well, now you know! :p
Not only that, every time you swipe your card when out of the station, it adds up the rewards that can be used later during your daily routine.
Using a credit card for traveling simply means having a key straight to a room where you are always safe!
By this, we mean that you get to benefit from travel insurance in case of any emergency, like sickness, minor injury, or the need to be admitted to the hospital.
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Many companies collaborate with money issuers to gain customers’ trust and provide the best of their services.
This means that every time you use your credit card for booking tickets, shopping, etc., you enjoy the agreed discount between the company and your card issuer.
There’s no place like home. Similarly, you never know what happens at the destination you have been heading to.
However, using a credit card ensures that your hard earned money is safe even though you might not be able to use the card for a few hours in any emergency! Still, it’s better to avoid the airport rip-offs foreigners experience.
Using a credit card means you have made a lot of things easier for you.
From booking tickets to purchasing your favorites – your credit card ensures that you don’t have to count paper notes over and over again!
Moreover, there's less of a chance of losing money. For instance, you might lose your cash while paying for one thing or another. But, the money is literally gone and there's no way of recovering it!
Of course, no such thing with your card.
Exchanging your money at the airport or at a local exchange agency could mean that you have to pay a higher rate than usual.
And doing so means you have spent most of your money on exchange rate fees, etc.
However, your credit card keeps you from any such fraudulent activities!
Having cash during travels could mean you can easily stray away from your effective budget plans and everything in between.
Which can disturb your budget as you use cash and card both for the payments.
In comparison, swiping a credit card makes transactions in real time with notifications, emails, or alerts so you immediately know how much you are spending.
In fact, it’s the best way to remind you not to overstep your financial goals while traveling because doing so can hurt your Equifax credit score back home.
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We all are aware of the fact that where there is an advantage, there is definitely going to be some disadvantage too!
Like, you can’t pick the roses without the thorns!
Therefore, to put it out, here are some cons of using a credit card while traveling to ensure that you enjoy the best getaway time of your life without any unwanted financial surprises after.
Not every country, state, or even city follows the same rule as yours.
So, this could mean that there might be some situations where your card isn’t acceptable and you have to pay in cash, no matter what!
Therefore, always carry some sort of cash money even with your card to avoid such uncomfortable situations.
Just like it took you months to plan a trip to your dream destination, banks and money providers also need to make some special arrangements for you when abroad.
For this, they charge foreign transaction fees or charges to keep up with their regular services.
Even when your card is accepted, some hotels or restaurants choose to deduct the payment as per their standard policy which can be costly for you.
For instance, if the CAD payment is profitable they’ll charge you with it even if you want to pay in USD.
However, you can always negotiate the terms and ask the manager for further assistance. Nothing too extreme to ditch your credit cards!
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Since you have already read the pros and cons of using a credit card for traveling, you might be wondering: so is it a yes or no?
Well, for better money decisions and a relaxing vacation, it is best to use your credit card and not the other way around.
However, for a few situations:
This way you will make the most out of a credit card’s perks without letting your precious money go in vain.
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The more, the merrier, right?
This is why we bring you some insightful and practical tips straight from our experts every time you swipe your credit card in a foreign land.
Lastly, remember to check your monthly credit report to ensure that there wasn’t any scammy transaction while you're on vacation.
There’s no doubt that you are planning a trip just because you want a much-needed break.
But how would you enjoy it if one of the most important things “money” is budging you again and again?
This is why it is important to make the wisest decisions when it comes to your financial peace and prosperity.
So, to help you with that we have made a detailed guide about traveling with a credit card. Read it now to weigh your pros and cons!