Your Next Holiday On Your Credit Card
It’s the end of the year, and everyone’s sighing with relief. It’s over! But it might feel like there’s no joy left in the world. The start of a new year is when many people begin planning their annual holiday. Just as it can be hard to resist buying things on a shopping trip, it can be even harder to keep that spending under control during long-term financial planning. Luckily for those looking for an easier way to book their next holiday, credit card companies have come up with a perfect solution.
Why book On Your Credit Card
By using your credit card to pay for your next holiday, you can get a discount on hotels and other accommodation properties. instantly improving your savings and making it easier to plan future trips at lower prices than if you were paying cash. Because hotels have lowered their room rates in the order of how much they charged last year from guests who paid with money, this method is also known as ‘cash-back hotels’ or ‘YMCA hotels’ (which stands for ‘your money back hotels.). The good news is that using your credit card instead of cash or another form of payment won’t need to go through any more steps than usual to access these savings. All you need is a little planning ahead of time and some basic knowledge about how hotel pricing works.
Why Book Your Next Holiday On Your Credit Card?
There are several advantages to booking your next holiday on your credit card. The first is obvious: you get a discount on your hotel room! Depending on your credit card and hotel, you can often get a 10–20% discount on your booking. That can make a big difference at the start of the year or when you want to save money on a luxury item like a holiday. The second advantage of booking your next holiday with your credit card is that there are no extra fees. You won’t be charged a booking, credit card application, or foreign transaction fee. And if you’ve got a card with a hefty annual fee, it could be the perfect way to bring the cost down to something more manageable.
The positives of booking with your Credit Card
– No booking fees – Credit cards often have annual fees, but if you can waive that fee for a single year, it can help bring down the cost of your travel. Plus, as long as you only use the card for travel-related expenses, you will not likely incur any late payment fees. – No foreign transaction fees – If you’re travelling to another country, you’ll often be charged a fee if you use your credit card to buy something overseas. But if you book your holiday with your card and the hotel charges you in USD, the bank will charge you a fee for the conversion. By booking your trip in this way, you avoid this fee. – Better interest rates – Credit cards offer much better rates than cash.
This can help you save even more money on your holiday. And if you put a large amount on your card at once, like £10,000, you can get a lower interest rate for a short period. This can be a great way to reduce the cost of a holiday for a few weeks or months. – Increased spending – Another important consideration is whether booking your next holiday with your credit card will increase your spending. While some research indicates that people who use their credit cards for travel spend more than those who pay with cash, several studies also show the opposite.
It all depends on how you choose to use your card. If you decide to book your trip with your credit card and pay for other luxury items like a new TV or laptop on the same card, you can quickly end up overspending on your travel. But if you book your trip with a separate card, you might end up booking your travel as part of an overall plan to save money on other items.
The negatives of booking with your Credit Card
– You could end up booking more expensive hotels – While booking with your credit card could save you some money, you might pay more if the hotel you book is more expensive than the one you would have booked with cash. You pay for that room using the card’s higher interest rate. – You could end up paying interest on your card – If you end up paying off your card with a large purchase like booking your holiday, you could end up paying interest on that money.
And while this is typically only a problem for large purchases (more than £50,000), it could be an essential consideration in your decision-making. – Not everyone will accept your card – If you try to book your holiday with your credit card and the hotel does not accept it, you could be turned away. That could make it hard to book a hotel room for your trip and cost you some money. – Some card companies have minimum spending requirements – Some credit cards have spending requirements for booking hotels. If you don’t meet those minimums, you may be charged a booking fee or even declined for your booking.
Finding The Best Cash Back Hotel
Even if you have a credit card that can give you some great benefits, booking your next holiday with it might not be worth it if you can’t find the best cash-back hotel. Fortunately, this is where using your credit card can be the best. When you search for hotels using your credit card, it will show you those from the same group or chain as your card, which means they will likely have the exact pricing as the hotels you already use. If you use your credit card to book a stay at a Hilton or Marriott property, you can also use that card to book a stay at a Fairfield hotel within the same group. This method makes it easy to find the best cash-back hotel with a reasonable price and minimal booking fees, like a hotel in the Marriott group that costs $79 per night.
Which Credit Card Should You Use?
There are a few things to consider before you decide which credit card to use for booking your next holiday. Depending on what kind of discounts you usually get from your card, you may save even more money using a card with a higher annual fee. If your regular card gives you 10% off hotels, using a card with a higher annual fee might be worth it if you want to get the most out of the discount. And if you want the best rates and a wide range of hotels, you’ll want to get a card that can give you access to various brands. If you’re trying to find the best cash-back hotel, you can typically use whichever card you want to book your flight and accommodation. That way, you can use whichever card gives you the best rates.
If you plan to book your next holiday on your credit card, you’re in luck! It can save you a lot of money and even give you some perks like free flights and upgrades. But it does come with some downsides, so make sure you consider the advantages and disadvantages before you book.