Consumers recently polled by TD Bank said they most looked forward to spending on travel this year.
But two-thirds said they don’t use their primary credit card to pay for travel expenses.
Paramita Pal, head of U.S. bankcard product management and external acquisition at TD Bank, explains why a cash back rewards credit card you might use every day is also a sensible option when you are on vacation.
Charging Travel Expenses Can Save You Money
It’s easy to spend a lot on travel, and budgeting constraints might deter consumers from putting travel expenses on their card. But that’s leaving money on the table: Every dollar you spend using a cash back rewards credit card earns you money to use later. In the case of a card like the TD Double Up Credit Card, you could earn as much as 2% Cash Back on purchases—including those pricey airline tickets and vacation rentals.
Consumers are looking forward to traveling
again, and they should evaluate whether using a travel credit card is the most financially savvy way to spend. These cards can offer high earn rates on travel purchases, and typically don't come with a foreign transaction fee for those traveling abroad. However, many carry annual fees and have higher interest rates than their cash back counterparts. For consumers who are occasional travelers, putting travel expenses on their primary cash back card—which offers rewards on much broader categories—can be a better choice.”
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Paramita Pal
TD Bank
63%
A majority of American credit card holders own a cash back card, the most popular type of rewards credit card.
TD Bank Survey