How Your Credit Cards Can Become Your Best Friend on Vacation?

Let’s start ticketing things off our bucket list this holiday season, and jet off on a few adventures to break free from the monotony of our everyday lives! To do so the first thing that's on all of our minds is ‘Money’. It's essential to ensure that your vacation expenses don't dampen the excitement of your trip. This is where credit cards truly shine! They inject extra flexibility into your budget and can even uncover hidden savings. Here are some exhilarating hacks to unlock the full potential of your credit cards while you're on 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 savior. 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.

As we dive into new experiences and create cherished memories, let's remember that smart financial management adds an extra sparkle to our adventures. With these hacks and a bit of planning, our holiday escapades will not just be exhilarating but also financially savvy!

Edited by: Ananya Gupta