7 Ways Your Credit Card Could Save You Money on Holiday Travel
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Paying for your holiday getaway with your travel credit card to rake in points and miles is a no-brainer. But if you really want to take advantage of all the travel-friendly benefits your card offers, don't stop there.
Card perks such as waived baggage fees, rental car insurance and trip cancellation or interruption insurance can amount to hundreds of dollars in savings. That's especially nice during such a hectic, costly season: In 2017, 6.4 million people will travel by air between Dec. 23 and Jan. 1, and the average price for a round-trip flight for the top 40 domestic routes will be $165, according to projections by AAA.
Here are seven key benefits that could save you money on your holiday trip.
1. Travel statement credit rewards
If you’ve saved up rewards on your general travel credit card, the holiday season might be a good time to cash in, especially if you can redeem your rewards as a travel statement credit. Use your card to book the airlines or hotels with the lowest rates, and redeem your points against those charges afterward. Each issuer defines travel differently, but generally, airfare and hotel costs are covered.
Cards that let you redeem rewards for travel statement credit:
Capital One Venture Rewards Credit Card: Earn 2 miles per dollar spent on all purchases. A mile is worth 1 cent when redeemed as travel statement credit
Bank of America® Travel Rewards credit card: Earn 1.5 points per dollar spent. A point is worth 1 cent when redeemed for travel statement credit
2. Airline fee credits
Some cards offer airline fee credits, which cover costs such as checked baggage fees, airport lounge access, in-flight meals and upgrades. Trim your holiday travel costs or travel in style for less by redeeming these credits on your trip. Keep in mind that these benefits may expire at the end of each calendar year.
Card with airline fee credit:
The Platinum Card® from American Express: Get up to $200 per calendar year for incidental fees with your selected airline. Terms apply (see rates and fees).
3. Waived checked baggage fees
You know the holiday drill: Travel lightly when you’re departing, and return with more gifts, souvenirs and leftovers than you know what to do with. Use the benefits on your co-branded cards to save money on these fees. In some cases, you have to book your flight with the card to get this bag credit. Other times, you can get the fees waived if you include your frequent flyer number on your ticket.
Card with waived checked baggage fees:
Delta SkyMiles® Gold American Express Card: First checked bag fee waived for you and up to eight other travelers on your reservation (see rates and fees).
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®: First checked bag fee waived for you and up to four other travelers on your reservation.
United℠ Explorer Card: First checked bag fee waived for and a companion on your reservation.
4. Discounts and freebies for your plus-one
Two-for-one deals aren’t just for Black Friday. Before you book a couple's trip over the holidays, find out if you have a card that lets you add someone to your hotel or flight reservation at no extra cost, or at a discount. In some cases, you may have to meet a certain spending threshold to get this benefit.
Card with companion benefits:
Alaska Airlines Visa Signature® credit card: Get a companion fare each account anniversary after you spend $6,000 or more on purchases during the previous 12 months, and pay just $122 ($99 base fare plus taxes and fees from $23) for your companion for Alaska flights when booking on alaskaair.com
Delta SkyMiles® Platinum American Express Card: Get a companion certificate each year after you renew your card. You'll get one main cabin round trip ticket for someone else traveling on the same itinerary as you for domestic travel, plus trips to Mexico, the Caribbean or Central America. You'll only need to cover the cost of taxes and fees, which are capped at $80 for domestic travel and $250 for international travel.
5. No foreign transaction fees
If you’re spending the holidays abroad, bring a card that doesn't charge those pesky 1% to 3% foreign transaction fees. Keep in mind that all Capital One and Discover cards have this feature.
Other cards with no foreign transaction fees:
6. Trip cancellation insurance
Nix the trip cancellation insurance at checkout if you're paying with a card that already includes it. With this benefit, you can get a refund on your nonrefundable airfare and other travel costs if you have to cancel your trip for reasons such as illness or severe weather.
Coverage varies by card and issuer, but generally, cards with World MasterCard and Visa Signature benefits offer this complimentary protection, and American Express charges extra for such coverage.
7. Primary rental car insurance
If you're paying for your rental with a credit card comes that comes with either primary or secondary car rental insurance, you save around $20 a day by declining the collision damage waiver (CDW) offered by the rental company. Most cards offer secondary coverage, which requires you to file a claim with your regular car insurance provider first and could make your insurance rates go up. But with primary insurance, your issuer covers the damages first.
Cards with primary rental insurance:
The bottom line
During the hustle and bustle of peak travel season, the most valuable credit card features are flexible rewards and traveler-friendly benefits. Read about your card's benefits to find out which ones you can take advantage of this year.
Remember, you don't need to overspend to get good deals this holiday season. Sometimes, it's just a matter of using the right card at the right time.
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