Though most younger Filipinos probably associate credit cards with online purchases, older generations may associate them with international travel. Indeed, modern credit cards came into their own during the jet age, providing early jet setters with an easy way to pay for travel, dining, and accommodations across borders. The advantages of credit cards in travel have persisted and, even today, many credit cards are marketed specifically for travelers.
However, the Philippine credit card market has heated up, with more general-use rewards credit cards now proliferating. Some of these cards offer such a breadth of rewards and features that the best rewards credit card for travel may not always be marketed explicitly as a travel card. And as more Filipinos travel, many are becoming hip to using the cards they have available to gain all kinds of perks and privileges.
If you’re going on a trip soon, read on. These tips will help you get the most out of today’s rewards cards like the Landers Cashback Everywhere Credit Card by Maya, especially on international journeys:
1) Look Beyond Cards Advertised for Travel
While it is a good idea to consider cards marketed at travelers, there are plenty of alternative cards that could deliver better or achieve comparative savings. Some cashback credit cards, for instance, will give you back a percentage of your purchase value even for overseas purchases, potentially making them more worth your while. Ultimately, the most important thing is to choose a card that closely aligns with the kind of spending and lifestyle you have.
2) Stick to Recognized Providers
Though credit card acceptance is now at an all-time high, you should still stick to cards backed by globally accepted providers, preferably VISA or MasterCard. Other providers may have a significant presence in certain markets or niches, but these two card providers are, by far, the most widely accepted and recognized the world over. If you plan to only use one or two cards when traveling, you must make sure that at least one of them is backed by these providers to avoid major payment issues.
3) Optimize Your Spending According to Your Card
Most rewards credit cards will only offer rewards for specific spending categories, often with different rates for areas like dining, transportation, travel bookings, and so on. What’s more, many cards will also exclude specific spending categories.
There is a lot of variety between card offers, so it’s important to know what spending categories qualify for certain rates as well as the spending thresholds that have to be met to earn your rewards. In any case, plan your travel-related expenses like flights, accommodations, and meals to hit these categories and thresholds to unlock the rewards due to you.
4) Use Cash Advances Wisely
Cash advances are among the most useful credit card features for travelers, especially if the card is from a major provider (see tip #2). A cash advance can provide you instant access to local currency through local ATMs supported by your provider, making this feature a potential lifesaver when you’re overseas.
Still, it’s worth remembering that cash advances will have higher interest rates and fees compared to regular credit card transactions, barring some kind of special promo. They’re invaluable for getting peace of mind, but they should only be drawn when necessary and repaid as soon as possible.
5) Avoid Paying in Pesos Abroad
In some overseas card transactions, you may be given the option to pay in the local currency or Philippine pesos. When in doubt, it probably makes sense to just select the local currency option since foreign exchange rates offered by credit cards tend to be more favorable to consumers when compared to ATMs or forex booths. On longer trips, this choice has the potential to save you a significant amount of cash that you can use to maximize your rewards.
6) Use Your Card’s Partnerships
Even cards that are not explicitly marketed as “travel cards” may be tied to useful partnerships that you can use to your advantage. Check your card’s airline, hotel, and merchant partnerships to see if you can get additional rewards points, discounts, or access to airport lounges.
These perks may not always seem like much, but a room upgrade or even a couple of hours in an airport lounge can make a positive difference in your mental state when traveling.
7) Monitor and Redeem Rewards Regularly
Even if you aren’t planning on traveling soon, it literally pays to keep an eye on your rewards, especially if they come with an expiry date. Make it a point to check your card provider’s rewards catalog whenever you pay off your card for the best redemption options or to see if you have enough cashback to go towards future flights, upgrades, or hotel stays.
8) Don’t Let the Fees Get to You
Annual membership fees and foreign transaction fees can make a huge impact on the usability of your card for frequent traveling. If you plan to travel, you should pick a credit card with no or minimal foreign transaction fees, as this can lead to significant savings.
Turn Your Rewards Credit Card into Your Best Travel Companion
Though it can be complicated, taking the time to understand your card’s features will help you reap the rewards and make every journey a little bit better. Applying the strategies shared above will transform your rewards credit card from just a payment tool into a gateway to unforgettable travel experiences.
If you don’t have a card yet, do the math first. After all, the best rewards credit card for travel might not always be the one you think.
