While the entire idea of a vacation is to take a break from the daily grind and stresses, credit and finances are still something that need to be actively managed even when on vacation. Poor choices made at that time, will hound you and impact your financial life.
Keep these financial considerations in mind when planning your next trip:
Prepping For Your Trip
Nothing beats being smart when spending money travelling is planning in advance. Air tickets, hotels and rental cars are easier to get deals on when booking in advance. Planning also allows you to compare prices on various sites like Expedia, Priceline, Travelocity thus allowing you to get the best deal. Deal sites like Groupon, Living Social etc also frequently carry good hotel deals.
Tickets for attractions in various cities, restaurants and things to do also show up on the deals sites frequently, so if you plan and book in advance you may get a good deal.
Planning and booking in advance, will also allow you to read customer views on Yelp, Google etc and make sure your stay is pleasurable.
To make your bookings, use a credit card so that your purchases are protected, and you get reward. Just spend within your means so that you are not revolving on your credit card and paying finance charges. If you do end up revolving, think about how and when you will pay so that your credit score does not get impacted. Remember, you will have to come back from vacation and pay these bills!
Websites like freecreditscore.com can help you understand the impact certain credit decisions may have on your overall finances.
Be sure you inform your credit card company in advance that you will be travelling outside the country so that your card does not get declined or is not viewed as suspicious. You may also want to check on the foreign transaction fees and about a phone number that works internationally, should your card be lost or stolen.
Do some home work and find which credit card brands are accepted in your destination country. American Express does have a very limited acceptance so make sure you have a credit card that is widely accepted.
While Traveling
Now, you are all set for that much anticipated travel. You have made the right decisions so far. All you need to do is to continue that trend while travelling!
You will need some cash on your trip but it is hard to keep a track of your spending when it’s cash. Also, cash if lost/stolen cannot be recovered. To make sure you are handling your cash safely, don’t keep all of it in one place. Carry some with you while store a part of it in a safe place. Interesting and funny, but some people store cash in the funniest of places like their socks or in a secret pouch underneath their clothing.
Cash while having its dis-advantages, has certain advantages too. Some vendors offer discounts on cash payments- thus increasing your bargaining power.
Credit cards are great since they allow you to keep a record of your purchases and of course you can earn those reward points!
When using credit card while travelling be very careful with it’s use. Alert your credit card issuer about your travel plans so that they can monitor any fraudulent transactions. Credit card numbers are easily stolen especially in crowded places and in countries which do not restrict full credit card numbers on receipts. Lastly, store your credit card number and the issuer’s information in a safe place so that you can alert the company, if your card gets stolen. You can also store a back-up credit card in a separate place in case you lose your mail credit card. You can also store your financial information on an encrypted USB device somewhere safe.
Don’t carry your SSN or green card or passport when out and about in a new city. Keep them safe in a hotel locker. And don’t use a public Wi-Fi connection - such as the ones found in airports or hotels - to access your online financial accounts. Fraudsters, can use special devices to hack account information from gullible travelers.
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