In the first part of our guide to credit card foreign travel, we revealed the importance of using plastic abroad and what features every card should have. Now that you’re armed with the right card, it’s essential to know how to use what you have to maximize savings, protect your credit and prepare you for the unexpected.
To start, you can use your credit card to your trip’s advantage before you ever set foot on international soil by tapping into your existing rewards.
“Checking for rewards availability as far ahead as possible will ultimately help maximize the benefits being offered by the credit card rewards program,” says Orit Keren, CEO of OKT Corporate Travel Management.
Redeeming rewards points can ultimately shape your trip, determining where you stay or which dates you’ll fly. And the willingness to yield to this kind of travel flexibility may translate to some serious cash savings.
Here are two expert tips to channel rewards into your next overseas trip:
Know the power of transfer points.
While some rewards points may seem like they’re designated for a specific category, issuers are often flexible when it comes to redemption.
“A lot of hotel rewards programs can actually transfer points or redeem them for things like miles,” says Goldman. “Just be careful that you don’t end up with a poor value. If the points translate to a 1 to 1 relationship, it’s probably a good value. But some transfers are not good; you may end up with less than you started with.”
Websites like Points allow you to take rewards swapping to another level, where you can exchange your existing program rewards and apply them to another of your loyalty programs. So if you’ve already purchased your tickets, this may allow you to use the points you earned on that transaction and apply it to your hotel stay.
Consider working the card application system to your advantage.
Kepnes suggest one trick to multiply your incentive bonus, which can be used toward the cost of your exotic trip.
“One thing to remember is that with most travel companies if they offer a Visa, MasterCard, or business version of their card, those are all treated as different cards,” he says. “If they offer a sign up bonus, it’s three times the bonus, three times quicker you get to your free trip.”
There may be a slight drop in your credit score when these applications are submitted, but Kepnes says this is temporary. And with proper budgeting and keeping your debt to credit ratio in check, you may continue to work this trick to your advantage.
“If you have no major purchases in the next 6 months, you aren’t doing any harm to your credit,” he adds. “I simply sign up for all the credit cards at the same time so all the dings hit and go away at once.”
Kepnes says he’s never been denied a card this way. So if you do careful research into cards that you know fall into your credit score range while balancing your rewards needs, you may be able to benefit from this same application trick.
Credit Card Travel Checklist
Before you pack your bags, there are a few can’t-miss steps to prep your wallet.
First, contact your card issuer or bank and let them know your plans at least 10 to 14 days in advance. While this may seem more like something a teen would inform a parent, it serves a real purpose in thwarting fraud.
“The most important thing is to let your credit card company know in advance which countries you are traveling to in order to ensure that your credit card does not get flagged and payment is denied,” Keren says.
Next, devise your money backup plans. You should have a way to safely carry all of the contact information of your credit card so you can contact the issuer in the event of loss or theft.
Goldman says knowing the last four digits of the card number and having the customer service phone number on the back of the card can suffice. Whether you use software to store the information on your phone or you keep it with your luggage, he says to find a way that works best for you and that you’re most comfortable with.
Additionally, keeping an extra credit card handy in your hotel room safe can help ensure you have a payment method at all times.
Last, it’s important to understand the minor limitations of many U.S.-issued credit cards. In many parts of Europe and Asia, chip credit cards have been implemented, rendering the traditional magnetic swipe card incompatible for some transactions.
While experts note that using a chip card is not essential for foreign excursions, it can be inconvenient in circumstances of automated payment that don’t allow the manual input of a card number.
“While most larger merchants, hotels, or hostels, will take a swipe card, the real problem you run into is with public transportation,” says Kepnes. “All ticket booths in Europe only take chip cards so if you don’t have exact change, you won’t be getting a ticket. In other regions of the world, I’ve never found not having a chip card to be a problem.”
Between credit card comparison shopping and number crunching rewards points, it may seem like using plastic for global adventures takes a lot of work. But when considering the potential for consumer protection and savings, credit cards have all the makings of an ideal travel companion.