Ever since the reopening of international borders and the rebound of tourism worldwide, many airlines, short-term vacation rentals, hotels and shopping hubs have continuously encouraged people to travel with various promotions. Doing so has increasingly allowed us to afford travelling to many places as it is not considered as luxurious as a decade ago. The same goes for the use of credit cards.
Since everyone has different purposes when they travel and unique preferences, they can pick a credit card, if eligible, to make travelling safer and more convenient.
Below are some of the credit cards that are often subscribed to by travellers:
When it comes to credit cards, there is still a high barrier of belief that one can fall into high debt for using it. That is of course, if you decide to dig your own grave. So how can credit cards be utilised wisely?
- Pay your bills BEFORE the due date and more than the minimum payment amount so that you won’t have to deal with a hefty sum of interest rate and enhance your customer profile with the bank.
- Regular and on-time payments help you build a good credit score on your CCRIS, which in turn allows you a better chance of future loan approval.
- Once you have chosen the card that suits your needs the most, try to only use the card for the opted benefits. For example, if you sign up for a credit card that accumulates the most points for airlines and hotels, utilise those benefits as much as possible.
- Avoid using a credit card for any cash advance as the interest rate is exceptionally high compared to other bank loans.
- Credit cards are more secure than keeping stacks of cash when you travel. Every spending can be tracked and you can report any fraudulent use to the bank.
Realistically, we need to be a good payment master in order to maintain a good track record with any financial institutions. If you think having a credit card can make your travel safer and more convenient, it is no harm in consulting financial professionals to help you make the best decision.
Get as much advice and tips before you commit to any long-term financial decision. Remember to always be prudent, stay on top of your finances and be a responsible borrower!
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