Using Cash Back Rewards to Fund a Dream Vacation

TORONTO, ON / ACCESSWIRE / May 6, 2024 / For many people, the possibility of a dream vacation is both alluring and seemingly out of reach. After all, travel can be expensive, and the cost could make it feel almost impossible.

However, there are ways to use cash back rewards to make a dream vacation an affordable reality. Using rewards cards strategically can help to save money and build credit, so cardholders can switch from wishing for their perfect vacation to planning it.

Saving Cash for Travel

Cash back credit cards in Canada work in a fairly straightforward manner. Cardholders have two options:

A flat-rate cash back rewards program where they earn money based on how much they spend on their credit card overall, or

A category-specific cash back rewards card, where they get rewards for purchases in specific categories, such as travel or groceries.

A flat-rate cash back card works best for people who tend to spend in a variety of categories equally or who prefer to receive cash back that they can use however they choose. A category-specific card works best for those who tend to spend more heavily in specific categories and perhaps would like their reward focused on those categories, such as a travel rewards card.

There are some simple ways to maximize cash back rewards. Many cards offer significant welcome bonuses or introductory offers. Waiting for those limited time offers can be worthwhile if they enable points to build up.

Bonus categories can also be used strategically. For example, a foodie who loves trying new restaurants might choose a card with additional rewards for dining out-if their dream vacation is one that revolves around 5-star restaurants, these rewards might make more sense even over a travel-specific card. Knowing specific spending habits can make choosing the best cash back credit card a simple task for anyone.

While it's important not to spend just for the sake of building up rewards, using a cash back rewards card for regular purchases can build up a significant reward balance.

Plan a Dream Vacation with Cash Back

There are many potential expenses that go into a dream vacation. Flights, hotels, car rentals, food and beverages, activities, and keepsakes must all be taken into account when estimating the cost of a trip. Those costs quickly add up.

Combining a cash back credit card with loyalty rewards can make vacations even easier to save for. Some flexible loyalty programs don't have an expiration date for points. Airlines, hotels, car rental companies, and even restaurants can have robust loyalty programs that enable customers to stay in upgraded hotel rooms, get additional nights for free, and even upgrade plane seats at a reduced cost.

Beyond Cash Back: Funding a Dream Vacation

Travellers should also consider other strategies, such as travelling during the off-season. Many companies earn most of their profits during the summer season or other peak travel times throughout the year. Flights, hotels, and other expenses can increase in price significantly during these peak seasons but are often discounted during the off-season. This can lead to much more affordable-and less crowded--vacations.

Understanding budget and financial habits, choosing the right cash back credit card, and spending strategically can turn a traveller's dream vacation into a reality in paradise.

CONTACT:

Sonakshi Murze
Manager
sonakshi.murze@iquanti.com

SOURCE: iQuanti