Seven ways your credit card can save you money on holiday travel
Card perks such as waived baggage fees, rental car insurance and trip cancellation or interruption insurance can amount to hundreds of dollars in savings.
People rest at LaGuardia airport on the day before Thanksgiving, in New York.
Carlo Allegri/Reuters/File
Paying for your holiday travel with your credit card to get听points, miles and cash-back rewards is a no-brainer. But if you really want to take advantage of all the travel-friendly benefits your card offers, don鈥檛 stop there.
Card perks such as waived baggage fees, rental car insurance and trip cancellation or interruption insurance can amount to hundreds of dollars in savings. That鈥檚 especially nice during such a hectic, costly season: Last year, 5.7 million U.S. travelers booked flights between Dec. 23 and Jan. 4, and the average price for a discounted round-trip airline ticket alone was $186, according to听.
Here are seven key benefits听that could save you money on your holiday trip.
1. Travel statement credit rewards
If you鈥檝e saved up rewards on your general travel credit card, the holiday season might be a good time to cash in, especially if you can redeem your rewards as a travel statement credit.听Use your card to book the airlines or hotels with the lowest rates, and redeem your points against those charges afterward. Each issuer defines travel differently, but generally, airfare and hotel costs are covered.
Cards that let you redeem rewards for travel statement credit:
- : Earn 2 miles per dollar spent on all purchases. A mile is worth 1 cent when redeemed as travel statement credit.
- : Earn 2 miles听per dollar spent. Get a 5% bonus when you redeem rewards for travel statement credit. A point is worth 1 cent when redeemed for travel statement credit.
- : Earn 1.5 points per dollar spent. A point is worth 1 cent when redeemed for travel statement credit.
2. Airline fee credits
Some credit cards offer airline fee credits, which cover costs such as checked baggage fees, airport lounge access, in-flight meals and upgrades. Trim听your holiday travel costs or travel in style for less by redeeming these credits on your trip. Keep in mind that these benefits听may expire at the end of each calendar year.
Cards with airline fee credits:
- : Get up to $100 a year for incidental fees with your selected airline.
- : Get an annual $250 air travel credit.
- : Get an airline allowance of up to $25 with every award travel ticket.
3. Waived checked baggage fees
You know the holiday drill: Travel lightly when you鈥檙e departing, and return with more gifts, souvenirs and leftovers than you know what to do with. Use the benefits on your co-branded credit cards听to save money on these fees. In some cases, you have to book your flight with the card to get this bag credit. Other times, you can get the fees waived听if you include your frequent flyer number on your ticket.
Cards with waived checked baggage fees:
- : First checked bag fee waived for you and up to eight other travelers on your reservation.
- : First checked bag fee waived for you and up to four other travelers听on your reservation.
- : First checked bag fee waived for听the primary cardholder.
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4. Discounts and freebies for your plus-one
Two-for-one deals aren鈥檛 just for Black Friday. Before you book a couple鈥檚 trip over the holidays,听find out if you have a card that lets听you add someone to your hotel or flight reservation听at no extra cost, or at a discount. In some cases, you may have to meet a certain spending threshold to get this benefit.听
Cards with companion benefits:
- : Your second guest stays free because of automatic HHonors Gold status benefits.
- :听Receive a $150 airline credit toward a companion ticket every year.
- : Earn 110,000 qualifying Rapid Rewards points in a year or fly 100 qualifying one-way flights on Southwest, and you earn a companion pass. The pass lets your companion fly free听through the end of听the calendar year during which the status is achieved听and听the next calendar year.
5. Waived foreign transaction fees
If you鈥檙e spending the holidays abroad, bring a card that waives those pesky 1% to 3% foreign transaction fees.听Keep in mind that all Capital One and Discover cards have this feature.
Cards with no foreign transaction fees:
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6. Trip cancellation insurance
Nix the听trip cancellation insurance at checkout if you鈥檙e paying with a听card that already includes it. With this benefit, you can听get a refund on your nonrefundable airfare and other travel costs if you have to cancel your trip for reasons such as illness or severe weather.
Coverage varies by card and issuer, but generally, cards with World MasterCard and Visa Signature benefits听offer this complimentary protection, and听American Express charges extra for such coverage.
Cards with trip cancellation insurance:
- : Get reimbursed for up to $5,000 in nonrefundable travel expenses if your trip is canceled because of sickness, severe weather or other covered events. The card also comes with a trip delay听reimbursement in case of a postponed flight.
- :听Get reimbursed for up to $1,500 a year in nonrefundable travel expenses if your trip is canceled because of covered events.
- : Get reimbursed for up to $1,500 in nonrefundable travel expenses if your trip is canceled or interrupted because of covered events.
7. Primary rental car insurance
If you鈥檙e paying for your rental with a credit card comes that comes with either primary or secondary car rental insurance, you听save around $20 a day by declining听the collision damage waiver (CDW) offered by the rental company.听Most cards offer secondary coverage, which requires you to file a claim with your regular car insurance provider first and could make your insurance rates go up. But with primary insurance, your issuer covers the damages first.
Cards with primary rental insurance:
- 听(for听business)
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The bottom line
During the hustle and bustle of peak travel season,听the most valuable credit card features are flexible rewards and traveler-friendly benefits. Read about your card鈥檚 benefits听to find out听which ones you can take advantage of听this year.
Remember, you don鈥檛 need to overspend to get good deals this holiday season. Sometimes, it鈥檚 just a matter of using the right card at the right time.
Claire Tsosie听is a staff writer at NerdWallet, a personal finance website. Email:听claire@nerdwallet.com. Twitter:听.
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