Use Credit Cards to Save Money While Traveling -

Using credit cards while traveling is a pocket-friendly as well as a convenient technique. You can earn points, miles and cash back rewards. However, these are the basic benefits of using a credit card overseas.

If you wish to make the utmost advantage of all the travel benefits that a credit card can offer, you must know which doors to knock on. Here are a few unbelievably amazing benefits that could help you save a lot more on your vacation.

Finding the Perfect Card

Credit cards are the best pocket-companions during travel. Traveling with cash can be quite risky, and the advent of credit cards has made it safer for people on a trip. Whether you choose to shop, go out for dinner, or buy flight tickets - credit cards are the best mode of payment. Certain credit cards also offer excellent travel offers and services.

However, the biggest bitterness sets in when the credit cards levy exorbitant charges for foreign transactions. What should you do when you have to fund an overseas trip - should you pay such high charges or should you look for alternatives?

Well, cheaper travel options are abundant. You just need to browse your options and find the right credit card to suit your purpose, which can be a tedious task. However, you ought to be aware that you can save a considerable amount of reserves if you just research enough to find the suitable card.

Most credit cards in the US and UK charge low foreign transaction fees, sometimes even as low as 0%. Unfortunately, we Indians are not that lucky. All Indian credit cards charge at least 2% foreign transaction charges, and these are the premium travel cards that are difficult to get.

Ordinary credit cards that most Indians easily qualify for might charge an insanely high fee. Do not be myopic while sorting through available credit cards; devote some quality time and search extensively for the best credit card deal.

These are the criteria that you must check before deciding on selecting a credit card for travel:

• If you are a frequent overseas traveler, the first prerequisite for your apt credit card should be a decently low currency conversion charge and foreign exchange rate.
  
  
• Look for cards offering reward points that can be converted for Air-miles or direct Air-miles that can be redeemed while purchasing flight tickets.
  
  
• Check for cards that give you free access to Airport Lounges.
  
  
• Credit cards levy a markup fee of 3% to 5% on foreign transactions. This essentially means that if you spend Rs.1 lakh on your foreign trip using a credit card with a 5% markup fee, you will end up paying an extra Rs.5000 to the issuer. Hence, you should look for a card that has low markup charges.
  
  
• A few credit cards levy a fee on swiping the card for purchases. Avoid those. You will find many cards that do not charge this absurd fee.
  
  
• Most credit cards charge varying rates for cash withdrawals through ATMs. Find the card that charges the least.

Best Credit Cards for Overseas Travel - Credit Cards for Travelling

Ready to set off on an overseas adventure? Before you pack up your suitcases, make sure that your wallet is packed well for the trip. Your well-wishers at mymoneykarma don't want you to fall in trouble and hence urge you to keep the following in mind while prepping for your trip.

Your Credit Card Should Be Suitable for Overseas Travel

You might have a great card with innumerable benefits, but it doesn't mean that it is fit for traveling abroad. Before setting off, make sure that your credit card has EMV compatibility and doesn't charge you for foreign transactions.

If your credit card has a small embedded golden square, be sure that it is EMV-enabled. These chip-enabled cards are more secure than the erstwhile popular magnetic stripe cards. The EMV chip cards work on a superior technology than the erstwhile magstripe cards and it is more difficult to hack into your account information through chip transactions than the ones through the magnetic ones. Travelers are prone to becoming victims of fraudsters. With the advent of these chip cards, the world has breathed a sigh of relief as it promises more security from credit card frauds.

Most Indian credit cards typically charge a fee on every foreign transaction. It could be as expensive as 5% of your total purchase per transaction. You would end up paying a lot of money for purchases. Instead, look for a credit card that doesn't levy the foreign transaction fee. You could actually save a lot this way. Consider getting a forex card as well.

You Should Carry Multiple Cards

Now that you have a credit card with EMV chip as well as no foreign transaction fee, do you think you are completely prepared to fly off? I don't think so. You need at least another card for backup. Are you wondering why? Well, be prepared for emergencies. Think of the worst - what if your card is lost or stolen? Expecting a replacement card immediately would be impractical. You would be inevitably stranded at a foreign location without any access to funds. It is better to be safe than sorry. Get yourself that backup card asap.

You Must Understand Your Card Network

Visa and MasterCards are more or less accepted universally, but there are quite a few other card networks like Discover, Amex, RuPay, etc. that do not work in all countries. Check whether your card network works in the destination country.

Inform The Card Issuer about the Trip

Credit card issuers lookout for fraudulent transactions. Overseas transactions generally come off as potential red flags. Your card could get blocked. Don't let it roll so far. Inform your card issuing company about your upcoming trip - convey the location and duration of travel. You could do this by calling up their customer service department. Some companies provide this facility on their websites.

Carry Some Cash

In spite of carrying multiple credit cards, you might run into unexpected exigencies. Your itinerary might include an obscure location where cards aren't accepted. You should carry some cash for such emergencies. It need not be your primary mode of payment, but it might come to use just in case.

Credit Card or Cash - What is Best while Travelling?

Going on a trip? Well, you might feel a tad bit uncomfortable when you step out of your comfort zone. You might wonder how to secure yourself financially during travels. Should you use your credit cards or stick to the old way of using cash? Your guiding spirits from mymoneykarma can steer you out of that puzzled state of mind with one quick read. Let's help you decide how you should spend your money while traveling.

Get to the Basics

Rather than stating the obvious, we would like you to introspect and answer these questions in your mind:

• Do you tend to overspend when you have access to a lot of money?
• Do you often forget to pay your bills on time?
• Do you go wild and surge into a shopping spree while traveling?
  

If you have answered these questions with a strong and bold "no," then we believe that you are a responsible spender who knows how to keep expenses within limits. You should consider using your credit cards while traveling. Skeptical, right? Read on to understand its dynamics.
Disadvantages of Cash

Cash payments barely promise perks or benefits. If you flash money, you could attract unwanted attention. An outsider with cash is an easy target for thieves. If you lose cash, your money is gone. Need I say more?

Using Credit Cards during Travel - Advantages

What's in a credit card apart from some numbers and letters on plastic! It is safer to use credit cards during travel. If you lose it, you can simply block it and get a replacement; you aren't technically losing your hard-earned money. It keeps that tension out of your head. It also brings along several benefits.

Reward points : If you happen to have a Rewards credit card, it can sweep you off your feet with the amazing benefits. Most travel rewards cards offer bonus points for booking flights and hotels. Many of these cards have tie-ups with hotels and you can avail a discount while booking. Apart from that, the more you spend, the more reward points you earn - you can reap their benefits by redeeming them later.

Facilities : Most credit cards offer perks to members. You can't avail a 'book-now-pay-later' hotel booking or those sassy self-drive rental cars without a credit card. Some credit cards provide protection for lost luggage and insurance for your travel. A lot of credit cards give you free airport lounge access to wait for your flight in luxury. A handful of travel credit cards slacken the rules for you when you cancel a booking or change the dates.

Convenience : A sleek and tiny card fits snugly into your wallet than a thick wad of cash. Moreover, what if you are just strolling on the beach and feel an impulse to frolic in the blue ocean? What if you are going to the pool bar? Cash could get soggy, lost or stolen. Credit cards are extremely convenient and safe as you need not bear liabilities if they are stolen.

Using Credit Cards During Travel - Disadvantages

Remember those three questions that you had answered in your mind? If you had a "yes" for an answer to any of those, you might need to be extra cautious while using credit cards during travel. Remember that these magic cards can be dangerous when misused.

How badly do we want to purchase those much-coveted souvenirs while traveling! Credit cards give access to oodles of available money. Spendthrifts would lose their minds and splurge on shopping. Irresponsible spenders might not only cross their budget limit but also fail to repay the money on time. Payment issues can pull down your credit scores; they can and will bring you a hefty APR, and you could get caught in the notorious debt trap.

However, let's assume that you have planned well and saved up enough for your trip. You will hopefully spend sensibly and have the required money when the due dates arrive.

Oh, there is one more thing that isn't related to your spending habits. In spite of carrying multiple credit cards, you might run into unexpected exigencies. You might visit remote locations where cards aren't accepted. In case you are traveling abroad, you must check whether your card network functions in the destination country. Visa and MasterCards are more or less accepted universally, but there are quite a few other card networks like Discover, Amex, RuPay, etc. that do not work in all countries. Moreover, credit card fraud is in vogue these days. You need to be on your guard while you travel.

Credit Card or Cash - What is Best while Travelling?

Going on a trip? Well, you might feel a tad bit uncomfortable when you step out of your comfort zone. You might wonder how to secure yourself financially during travels. Should you use your credit cards or stick to the old way of using cash? Your guiding spirits from mymoneykarma can steer you out of that puzzled state of mind with one quick read. Let's help you decide how you should spend your money while traveling.

Get to the Basics

Rather than stating the obvious, we would like you to introspect and answer these questions in your mind:

• Do you tend to overspend when you have access to a lot of money?
• Do you often forget to pay your bills on time?
• Do you go wild and surge into a shopping spree while traveling?
  

If you have answered these questions with a strong and bold "no," then we believe that you are a responsible spender who knows how to keep expenses within limits. You should consider using your credit cards while traveling. Skeptical, right? Read on to understand its dynamics.
Disadvantages of Cash

Cash payments barely promise perks or benefits. If you flash money, you could attract unwanted attention. An outsider with cash is an easy target for thieves. If you lose cash, your money is gone. Need I say more?
Using Credit Cards during Travel - Advantages

What's in a credit card apart from some numbers and letters on plastic! It is safer to use credit cards during travel. If you lose it, you can simply block it and get a replacement; you aren't technically losing your hard-earned money. It keeps that tension out of your head. It also brings along several benefits.

Reward points : If you happen to have a Rewards credit card, it can sweep you off your feet with the amazing benefits. Most travel rewards cards offer bonus points for booking flights and hotels. Many of these cards have tie-ups with hotels and you can avail a discount while booking. Apart from that, the more you spend, the more reward points you earn - you can reap their benefits by redeeming them later.

Facilities : Most credit cards offer perks to members. You can't avail a 'book-now-pay-later' hotel booking or those sassy self-drive rental cars without a credit card. Some credit cards provide protection for lost luggage and insurance for your travel. A lot of credit cards give you free airport lounge access to wait for your flight in luxury. A handful of travel credit cards slacken the rules for you when you cancel a booking or change the dates.

Convenience : A sleek and tiny card fits snugly into your wallet than a thick wad of cash. Moreover, what if you are just strolling on the beach and feel an impulse to frolic in the blue ocean? What if you are going to the pool bar? Cash could get soggy, lost or stolen. Credit cards are extremely convenient and safe as you need not bear liabilities if they are stolen.
Using Credit Cards During Travel - Disadvantages

Remember those three questions that you had answered in your mind? If you had a "yes" for an answer to any of those, you might need to be extra cautious while using credit cards during travel. Remember that these magic cards can be dangerous when misused.

How badly do we want to purchase those much-coveted souvenirs while traveling! Credit cards give access to oodles of available money. Spendthrifts would lose their minds and splurge on shopping. Irresponsible spenders might not only cross their budget limit but also fail to repay the money on time. Payment issues can pull down your credit scores; they can and will bring you a hefty APR, and you could get caught in the notorious debt trap.

However, let's assume that you have planned well and saved up enough for your trip. You will hopefully spend sensibly and have the required money when the due dates arrive.

Oh, there is one more thing that isn't related to your spending habits. In spite of carrying multiple credit cards, you might run into unexpected exigencies. You might visit remote locations where cards aren't accepted. In case you are traveling abroad, you must check whether your card network functions in the destination country. Visa and MasterCards are more or less accepted universally, but there are quite a few other card networks like Discover, Amex, RuPay, etc. that do not work in all countries. Moreover, credit card fraud is in vogue these days. You need to be on your guard while you travel.

Other Options

While the right credit cards are no doubt your best companions during travel, you might be curious to know about your other options. What if someone doesn't own a credit card? What if someone doesn't qualify for the travel credit cards? What if someone has cards that levy an exorbitant markup fee? What if someone is simply uncomfortable using credit cards?

Well, there are solutions to all these "what ifs." If you don't prefer credit cards, you could try a debit card, a prepaid forex travel card or a traveler's cheque. Let us study these three in detail so that you know which one would work well for you.

Debit Cards

Debit cards might seem very convenient during travel as it assures you direct access to your funds. If you are traveling within India, debit cards can be your travel companions. If your card is connected to a widespread network like Visa or MasterCard, your pocket needs would be smoothly met by a debit card.

Debit cards are definitely safer than cash in case of a pickpocket - you can easily get a replacement card and you do not essentially lose any money. A profligate person can control expenditure and stay within the trip budget by keeping limited funds in the account and using a debit card for all transactions.

If you are traveling to an overseas destination, debit cards give you easier access to local currency, but it might not necessarily be cheap. You need to remember that your debit card contains money in INR, but your INRs won't work in the destination country.

If you use a debit card, you will have to pay currency conversion fees, foreign withdrawal charges as well as foreign transaction charges for each transaction. You would end up spending a lot more for no reason. Using debit cards might not be a smart choice for international travel as it isn't an economic proposition. Most importantly, debit cards are not well-protected against frauds.

Prepaid Travel Cards or Forex Cards

Prepaid travel cards and Forex Cards are the safest ones these days. You can load the card with money from your bank account. You can expect better and cheaper conversion rates, fees and charges. They are very convenient for overseas travelers. These cards are easy to get and generally have better exchange rates which do not fluctuate once the money is loaded on to the card.

You can load multiple currencies into them in case you are traveling to more than one country. You needn't pay additional conversion charges when you swipe these for shopping.

Just like debit cards, you can withdraw cash from ATMs using these cards but you might have to pay a nominal charge for withdrawals. You can use these cards like credit cards at merchant outlets and hotels.

However, there isn't any available credit in these cards - this means that you cannot overspend; simultaneously, you might get stuck if you run out of money since these cards cannot give you credit. Replacing a lost prepaid card is easy and hassle-free.

Traveler's Cheque

These used to be quite popular earlier as they are secure and easily replaceable. They can be bought in any currency and require a countersignature for use. Unlike our plastic cards, these are plain cheques made of paper and can get damaged very easily. If you are traveling abroad with a traveler's cheque, you will have to visit the bank or the issuing company's office during the working hours to exchange the cheque for foreign currency. Traveler's cheques are also quite expensive to buy as you might have to pay high service charges. Moreover, they have become almost obsolete and might not even be accepted everywhere.

Travel Habits - 5 Traveling Habits That are Breaking Your Bank

Habits are not always easy to break. When it comes to making a trip, some travel-planning tendencies of yourself are costing you. If you want to save money during trips, here are 5 mistakes you do not want to make.

No logging in: Maybe you browse casually when looking for tickets and travel plans, but did you know that doing so can work against you? Yes, it can. When you make an account on a travel site and log in, you can get so much more in terms of better prices, offers and packages. Why miss out all of that and lose the opportunity to save money? You save a lot of money just by logging in. See these as a kind of member’s benefit which are available to members only, not to outsiders who are just casually browsing. Take Expedia for example. Just by signing up, you get 10% off on 80,000 hotels and from 10000 activities.

Waiting too long: Maybe you are waiting for the best moment to capitalize on a great travel rate. Well, there are way too many chances of you missing out. One expert says that finding the best time to purchase a flight ticket is not as simple as buying something on a certain date. What is the way out of this? Well, you may want to start researching earlier. If you want to book a flight, start from 3 to 6 months before.

The mistake of being inflexible: Travel experts are always ready to tell you that it is important to book tickets a few months before departure. That can work of course, but it is also important to be flexible. Be open to last-minute deals as well. For example, you want to travel to Paris on the 2nd of June. Normally, you’ll have to do with whatever air ticket price you can get for that day. However, if you are more easygoing, you can surely get the best deals. When you are planning for a vacation or try, try to be flexible. If you come across cheap flights suddenly, don’t let them go.

Forgetting to bundle benefits and packages: Most people do know about bundling
auto insurance and home insurance, along with cable and internet. Well, there is another bundle as well: hotel and airfare. Nowadays, there are so many sites out there from where you can get flight and hotel stay packages. The benefit of course is that you get deep discounts. Now, there’s no need to book everything in one sitting. You can add things while on the trip itself! You can get as much as 32% savings when you buy in bundles.

Missing out on coupons: Price for the flight or for the hotel is not always the price you have to pay. Shoppers who are savvy enough know that it is important to look for online promo codes and coupons before ordering anything online. These save you a lot of money.

Credit Card or Cash - What is Best while Travelling?

 Get to the Basics

Rather than stating the obvious, we would like you to introspect and answer these questions in your mind:

    Do you tend to overspend when you have access to a lot of money?
    Do you often forget to pay your bills on time?
    Do you go wild and surge into a shopping spree while traveling?

If you have answered these questions with a strong and bold "no," then we believe that you are a responsible spender who knows how to keep expenses within limits. You should consider using your credit cards while traveling. Skeptical, right? Read on to understand its dynamics.
Disadvantages of Cash

Cash payments barely promise perks or benefits. If you flash money, you could attract unwanted attention. An outsider with cash is an easy target for thieves. If you lose cash, your money is gone. Need I say more?
Using Credit Cards during Travel - Advantages

What's in a credit card apart from some numbers and letters on plastic! It is safer to use credit cards during travel. If you lose it, you can simply block it and get a replacement; you aren't technically losing your hard-earned money. It keeps that tension out of your head. It also brings along several benefits.

Reward points : If you happen to have a Rewards credit card, it can sweep you off your feet with the amazing benefits. Most travel rewards cards offer bonus points for booking flights and hotels. Many of these cards have tie-ups with hotels and you can avail a discount while booking. Apart from that, the more you spend, the more reward points you earn - you can reap their benefits by redeeming them later.

Facilities : Most credit cards offer perks to members. You can't avail a 'book-now-pay-later' hotel booking or those sassy self-drive rental cars without a credit card. Some credit cards provide protection for lost luggage and insurance for your travel. A lot of credit cards give you free airport lounge access to wait for your flight in luxury. A handful of travel credit cards slacken the rules for you when you cancel a booking or change the dates.

Convenience : A sleek and tiny card fits snugly into your wallet than a thick wad of cash. Moreover, what if you are just strolling on the beach and feel an impulse to frolic in the blue ocean? What if you are going to the pool bar? Cash could get soggy, lost or stolen. Credit cards are extremely convenient and safe as you need not bear liabilities if they are stolen.
Using Credit Cards During Travel - Disadvantages

Remember those three questions that you had answered in your mind? If you had a "yes" for an answer to any of those, you might need to be extra cautious while using credit cards during travel. Remember that these magic cards can be dangerous when misused.

How badly do we want to purchase those much-coveted souvenirs while traveling! Credit cards give access to oodles of available money. Spendthrifts would lose their minds and splurge on shopping. Irresponsible spenders might not only cross their budget limit but also fail to repay the money on time. Payment issues can pull down your credit scores; they can and will bring you a hefty APR, and you could get caught in the notorious debt trap.

However, let's assume that you have planned well and saved up enough for your trip. You will hopefully spend sensibly and have the required money when the due dates arrive.

Oh, there is one more thing that isn't related to your spending habits. In spite of carrying multiple credit cards, you might run into unexpected exigencies. You might visit remote locations where cards aren't accepted. In case you are traveling abroad, you must check whether your card network functions in the destination country. Visa and MasterCards are more or less accepted universally, but there are quite a few other card networks like Discover, Amex, RuPay, etc. that do not work in all countries. Moreover, credit card fraud is in vogue these days. You need to be on your guard while you travel.