In many ways, traveling with a credit card is safer than traveling with cash. No one wants to walk around with a large amount of bills in their wallet plus if the cash is lost or stolen- you are basically out of luck. With zero fraud liability, using your credit card makes perfect sense. But just because you are on vacation doesn’t mean you can afford to be careless with your finances. Watch out for these common mistakes!
1) Forgetting to make a payment.
You may be enjoying a holiday but your obligations aren’t. Make sure you check your due dates and either schedule a payment or make an early one.
2) Using a credit card that charges foreign transaction fees.
If you’re traveling internationally make sure you use a credit card that doesn’t charge foreign transaction fees. At 1% – 3% per transaction, these fees can quickly add up.
3) Throwing away receipts.
Keeping credit card receipts is a good idea whether you are traveling or not. Don’t discard them until well after they have cleared on your credit card statement and you’ve determined they are all accurate. It’s always good to have proof in case there is a dispute.
4) Not informing your credit card company that you will be traveling.
This is especially important when you are going to be outside of the U.S. There’s nothing more aggravating than having a transaction declined because you forgot to notify your credit card issuer that you were traveling. Avoid the hassle by planning ahead.
5) Not using a rewards credit card for purchases.
The odds are you will have airline or hotel transactions while traveling so why not take advantage of your rewards credit card? Large purchases such as these can help you maximize the rewards you earn. Don’t miss out.
6) Charging your entire vacation with no plan to pay it off.
There’s no point in using a credit card to earn rewards if you are going to have a large balance to pay off. Any rewards you may accumulate will probably be negated by the interest charges you incur.
7) Not having an additional (backup) source of funds.
If you are traveling overseas, your credit card might not be accepted everywhere. In fact, most international retailers only accept chip and pin credit cards. Certain vendors (and even some restaurants) accept only cash or local currency. Make sure you have access to cash funds, when and if you need them.
8) Not having customer service numbers with you.
When you let your card issuer know of your travel plans, the customer service representative should provide you with a toll-free number (or one that you can use to call collect from overseas) if any problems arise. Be sure to carry any pertinent numbers with you so you don’t have to frantically search for information if you need to speak with someone.