Using Low Interest Credit Cards For Vacations

Many of us go on vacations every year. Going on a holidays are a great way to relax and bond with the family without the pressures of work. Many Americans go on vacations during the summer months between April and September and as a nation, we spend billions of dollars on holidays. A survey conducted by Visa USA showed that American Cardholders planned to spend an average $1,654 on their summer vacation, while 'mega vacationers' spend over $5,000 on their summer vacation. (source: http://corporate.visa.com/md/nr/press708.jsp)

Spending Big on Vacations without Cash

Traveling with big wads of cash is not a smart choice. This is especially so when you intend to enjoy the finest of wine and food, travel on first class and checking into 5 star suites. You would not want a bulging wallet sticking out like a sore thumb on the streets of Paris. Credit cards are the next best invention after jet lag pills for vacationing.

Using credit cards is much easier to carry and also keep track. Cards take up less spce and can be kept in your pocket. There are even some credit cards which comes with a neck chain. Nowadays even if you travel to many developing countries, credit cards are widely accepted. You also will not need to ensure that the foreign currency in your wallet is enough for the next meal.

Easy Accounting of the Spouse's Purchases

Unlike cash, credit cards make managing your receipts much easier. When you purchase something, records from that purchase will be sent by your credit card issuer at the end of the month. This can be used as a proof of purchase in many cases, especially when your luggage gets lost in transit. You will always want a backup cos things do go wrong and when it does, you can always fall back on the credit card statement.

Low Interest Credit Cards versus High Rewards Credit Cards

There are many people who only use their credit cards for vacation purposes only. In these cases, many would like to accrue reward points since they will be spending sizable amounts on the air ticket already. Then there are others who prefers a low interest credit card. This is especially so for vacations that stretches beyond a month or two and you are not able to make payments until you get back home. In these instances, a low interest credit card makes better sense.

Many credit cards also allow cash advances from ATM in many countries. If you are venturing into less developed areas outside the cities, getting some cash for the trip would make sense. Then in such instances, a low interest credit card will be better suited to your needs. You can also have a peace of mind when you make that large purchases, knowing that the interest will not accumulate over your head by the time you get back home.

In essence, credit cards can make your holidays easier than ever. You can earn rewards and cash back with purchases you make using your card. And you can avoid high interests with a low interest credit card. Cash may be king in many areas, but when you are traveling light, cash is overly bulky.

Jared L

Getting Cash Back with your Credit Cards

Traditional credit cards, even low interest credit cards, offer rewards like air miles, dining vouchers and even gifts like LCD TV. The types of rewards that credit card issuing banks offers are mind boggling, but more recent, cash rebates are becoming very popular. This is because most people prefers to recieve cash over the usual rewards, which may not always be what they desire.

For a lot of people, the idea of recieving cash is way better than air miles or even LCD TV. Think about it, cash offers you the flexibility of buying anything you desire and not be limited to only what the banks offers. This can also be thought of as another form of discount of the credit card's interest rates.

Higher Fees and APR


Normally, these types of credit cards entail higher fees and APR. You don’t want to carry a high balance on these cards at any time, as it normally ends up very costly. If you can off your balance at the end of the month, then your APR won’t affect you. Paying off your bill will also allow you to take full advantage of the cash rebate reward.

The percentage of cash back will vary, although most normally have 1%, with 5% being applied with certain purchases. For every purchase you make using your cash rebate credit card, you’ll get a small amount of cash back. Using your credit card on a frequent basis will give you a lot of cash back at the end of the year.

Getting Cash Back for Large Purchases

When you make large purchase, you will likely be getting a sizable cash back on your credit card. However you should check your terms and conditions before you use that card. This is because many such cards have a limit on the monthly cash rebates and you may be better off with using a high rewards, low interest credit card. But if your card is one that offers cash rebates without limit, it will definitely help in lowering the price of that large diamond you are dreaming off.

Interest Rates versus Cash Rebates

Remember. The better the cash rebates, the higher the interest rates or APR will be. Interest rates is where the banks make their money. If you make large purchases thinking that the cash rebates will help to offset the interest rates, you would be in for a rude surprise. Never use a cash rebate credit card to help with your cash flow problems, the high interest rates can compound fast.

Always research the rebate credit cards and find out what are the other features and terms. There are many credit cards that actually offers a competitive APR, due to the competition between banks. You should compare all such cards and then decide which is the one for you. If you are the discipline sort who pays your monthly balances on time, a higher cash rebates (even if it comes with a higer interest rates) can be right for you. Just make sure you pay on time.

Jared L