For many people, the holidays is often a time to go unwind, to go on a vacation, or visit relatives who reside overseas. Are you a student who lives at a boarding school, far away from your family? If yes, then you are certainly preparing to come home and spend the holidays with your loved ones.
In this article, let’s focus on how you can use your student credit card to your advantage if you’re going on a holiday trip this year:
Get rewarded. Does your student credit card offer travel rewards or cash back incentives? If yes, be sure that you will earn points for every dollar you spent on travel expenses. This is a good time to review the terms and conditions of your issuer. Find out which airlines, hotels, and car rental companies are affiliated with your card as this will enable you to earn more points from your charges.
Enjoy the perks. Most reward credit cards offer free travel insurance and car rental insurance for its holders. Surprisingly, a lot of cardholders are not making use of these privileges at all. However, you can save anywhere from $50 to $100 on these extra costs by not purchasing a separate insurance and make use of the insurance your reward credit card provides instead.
Watch out for currency conversion fees. If you are going to use your student credit card in another country, be sure to check the currency conversion fees. This extra fee can cost you anywhere from 1% up to 3% from the total amount of your charges, depending on the credit card you own.
Check your balance. Shopping while on a trip can be a thrilling experience. No doubt, you’ll want to buy souvenirs from the place and perhaps bring some gifts back to your friends. Using a credit card can be very convenient and you could easily forget that there are also limits to think about. Be sure to check your balance first before going on a trip. Set a limit with your spending.
How much do you plan to charge to your student credit card? Remember, you should not use more than 40% of your credit limit if you want to maintain a good score. By keeping your credit usage minimal, repayment will be a lot easier for you. More importantly, you can prevent your score from dropping.
Be ready to pay your bills. It can be fun to use a student credit card in place of cash. However, keep in mind that although you are swiping plastic, you will be using real money to pay off your charges. Have you thought about repayment? How will you be able to pay off your credit card debt? Can you afford to pay your debt on your own or would you need to ask help from your parents? These are important issues that you should think about before charging a purchase to your student credit card.