Like going to the beach without sunscreen, poor credit card management can burn you — hurting your credit score and leaving you overexposed to debt. You could also simply miss out on some cool perks.
To keep your finances free from harm and optimize your spending, make these eight credit card tips part of your summer routine.
[Read: Best Credit Cards.]
Before You Go
1. Cash In on Your Card Benefits
If you’re booking a trip, spend a bit of time looking through your credit card benefits to see which card is best to use, says Andrea Woroch, money-saving expert and consumer finance writer. “I once booked a summer trip using a cash back card, but then didn’t qualify for free checked bags like I would have with my United MileagePlus Visa credit card,” says Woroch. “The amount I paid for checked bags was more than I earned in rewards with the other card.”
You should also be aware of other benefits you might have that could come in handy later on. For instance, some rewards cards include trip insurance, primary coverage for car rentals, and lost or delayed baggage allowance.
2. Automate Payments Before Leaving
If you’re heading out of town for the type of vacation that’s off the grid, like a tropical island getaway or cruise, get your expenses in order before you go. “One thing I always remind people before they go on vacation is to double-check that auto pay is set up on their credit cards,” says Taylor Kovar, certified financial planner and founder of 11 Financial, a Texas-based investment firm. “It’s easy to lose track of due dates when you’re out of your routine, and a missed payment can ding your credit score and trigger penalty interest rates.”
In fact, just one missed payment can drop your score in a significant way, and it will stay on your credit report for seven years.
3. Look Out for Bonus Rewards and Offers
Credit cards sometimes offer limited-time partner offers and bonus reward opportunities that may allow you to earn extra cash back, points or miles for summer purchases. But they’re easy to miss if you aren’t paying attention to your account and opting into those card promotions, says Woroch. “Set up email alerts in order to get new promos delivered to your inbox or check your account before making a big summer purchase or booking travel so you don’t miss out on the bonus rewards,” she adds.
[Read: Best Rewards Credit Cards.]
4. Reduce Your Borrowing Cost
In a recent U.S. News survey, 1 in 5 American consumers said they were knowingly going into debt to fund their 2025 summer getaways. If you’re among those who are relying on plastic to fund a trip, then at least think about the annual percentage rate, says Woroch. “Paying high interest fees of over 20% can cause you to spend much more for your getaway in the long run, leading to financial stress and debt,” she says. Her tip: Consider applying for a new credit card to take advantage of an introductory 0% APR on new purchases for a year or more.
Another option is to pay off any summer debt quickly by always paying more than the minimum due. You can also transfer the balance to a 0% balance transfer card, with some offering as much as 21 months of no interest.
5. Ditch the Debit Card
Trying not to rely on credit might seem like a smart move, but keep in mind that using a debit card isn’t necessarily the best alternative. For example, Kovar says that using debit cards instead of credit cards for things like hotels or rental cars might mean having less consumer protection should something go awry. Plus, when you pay for a hotel stay or rent a vehicle, the company puts an authorization hold on your funds. So if you’re paying with a debit card, you are tying up some of the money in your bank account. “I’ve seen too many people stuck with big holds or surprise charges they could’ve avoided just by using the right card,” says Kovar.
While You’re Away
6. Watch Out for Foreign Transaction Fees
If you’re planning a trip abroad, make sure you pack a card that doesn’t charge a foreign transaction fee. Many travel cards, especially those with an annual fee, waive this cost. The same is true if you happen to have a Capital One card.
Otherwise, a good number of cash back and general credit cards do charge around 3% of each foreign purchase amount, which can quickly add up.
Bonus tip: If a vendor asks if you want to pay in U.S. dollars or local currency, always go with local currency to avoid a dynamic currency conversion fee.
[Read: Best Credit Cards for Fair Credit.]
7. Keep Tabs on Transactions
Fraudsters don’t go on summer break, so it’s important to stay vigilant, even when you’re in vacation mode. For starters, you’re using your card more when traveling, which exposes you to a greater risk of phishing and scams. Plus, a change in spending habits could make it easier to overlook small fraudulent charges, says Woroch. “Ultimately, you need to pay more attention to your credit card statements and check transactions daily to ensure your account wasn’t compromised,” says Woroch.
To make it simple, consider setting up transaction alerts to get texts or emails every time a purchase is posted to your account.
8. Cash Can Help
Although you may not want to carry around too much cash when you’re traveling, for some road trip purchases, it might be the most cost-effective payment method. For example, many gas stations charge 10 to 15 cents more per gallon for credit card transactions, notes Woroch. “Cash can also help you avoid transaction fees passed on to consumers at small mom-and-pop shops or convenience stores when traveling and buying food,” she adds.
More from U.S. News
Line of Credit vs. Credit Card: How They Compare and When to Use Each
Will Buy Now, Pay Later Replace Credit Cards?
Should You Apply for Multiple Credit Cards at Once?
8 Smart Credit Card Tips for Summer originally appeared on usnews.com
