How your credit cards can become your best friend on vacation

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Summer has arrived and with it comes the urge to take a break from routine. Ticking things off your bucket list isn’t all fun and games, it also requires some serious financial planning. It’s important to ensure your vacation budget doesn’t cause a strain on your finances. This is when credit cards can come in handy. They add more flexibility to your budget and also help you save cost.

Here are a few hacks you can use to make the right use of your credit cards while on a vacation.

1. Free up your card limit

If you are using credit cards with low available credit limits on vacation, you may not be able to make the most use of them. Especially if you run low on cash or face an emergency, credit cards can become your saviour. So ensure you pay off all the outstanding balances before heading for your big vacation.

2. Use credit cards for large transactions:

Credit cards are also more secure than debit cards in case there’s any dispute or fraudulent activity. When you use a credit card for larger purchases like hotel rooms, flight bookings, etc., you have more control over the transactions. The risk of losing your money to fraud is much lower in the case of credit cards.

However, it’s equally important to maintain a healthy credit utilization ratio to ensure you are not going overboard with your purchases.

3. Don’t max out your credit cards

Maxing out your credit cards can attract extra fees and may create a dent in your credit report which will eventually hurt your credit score. So ensure you actively monitor your card limit.

4. Avoid holiday debt

The vacation hangover can last longer than you can imagine. Therefore it’s important to track your budget and pay off your dues on time. If you are on a longer vacation or in case your bill due date is near the vacation, you can also set up payment reminders using the OneScore app for free. Late payments can damage your credit score and attract unnecessary fees.

Did you find these tips helpful? Stay tuned for more. To regularly track and manage your credit score for free, download OneScore