Writer: Andrea Woroch
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Summer and vacations go hand in hand, but record-high inflation is causing travel costs and gas prices to skyrocket, making it more difficult for families to afford a trip.
Practicing a few basic budgeting hacks, such as reducing monthly bills, limiting discretionary purchases, and cutting back on take-out, can help you boost savings in time for your summer vacation. But don’t overlook the many benefits your credit card offers to help you get away for less.
In fact, credit cards offer several surprising financial perks that can ease your travel experience and take the sting out of rising prices. Check out these 12 ways credit cards can help you save on a summer vacation.
1. Earn Rewards Toward Free or Discounted Travel
You can earn a variety of rewards, from airline miles to travel points to cash back, when using a credit card. These rewards can alleviate the growing financial burden of traveling, especially as prices of airfare and gas skyrocket ahead of summer.
As long as you only use your credit card to pay for purchases you were going to make anyway, you can earn valuable rewards toward free flights and free hotel stays. You can also earn cash back rewards that you can redeem for a statement credit to pay for some of your travel expenses.
To maximize rewards, look for a card that rewards you the most for the types of purchases you frequently make. For example, most of us buy groceries from a supermarket at least every other week, and a rewards card such as the Blue Cash Preferred® Card offers 6% back on grocery purchases.
This strategy will enable you to rack up more miles, points, or cash back to help pay for summer travel fees.
Another example is the Chase Sapphire Preferred® Card, which offers points worth 25% more when redeemed for travel through Chase Ultimate Rewards, helping you pay for more of your summer trip using fewer rewards.
2. Signup Bonuses
Opening a new credit card doesn’t seem like a typical saving strategy, but signup bonuses can significantly reduce travel costs. Some cards offer free cash, points, or airline miles when you meet a spending requirement within the first few months of account opening.
Opening a new card is an easy way to earn extra rewards that can be used to cover travel expenses so less comes out of your own pocket.
Take for example the Capital One Venture Rewards Credit Card which offers new cardholders several thousand miles when they meet the spending requirements after account opening. While the spending threshold on this offer is on the higher side, anyone planning to make a big-ticket purchase anyway can easily earn this bonus and use those miles to cover airfare or hotel stays.
- Earn a one-time bonus of 75,000 miles once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won’t expire for the life of the account and there’s no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app
Before biting at the first signup bonus you come across, spend time comparing offers and search for the deal that offers the most cash back, points, or miles.
3. Cheap Companion Tickets
While companion tickets have become a less popular promotion offered by credit cards, several cards still offer this perk to help travelers save big on airfare.
The Delta SkyMiles® Platinum American Express Card issues a free companion pass every account anniversary.
- Earn 90,000 Bonus Miles after you spend $3,000 in purchases on your new Card in your first 6 months
- Earn 3X miles on Delta purchases and hotels, 2X miles at restaurants (including takeout and delivery) and U.S. supermarkets, all other purchases earn 1 point per $1
- With MQD Headstart, you can receive $2,500 Medallion® Qualification Dollars each Medallion Qualification Year and get closer to elevated Status for next Medallion Year.
- Get your first bag free on Delta flights booked with your card
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your card
- Receive a 20% savings in the form of a statement credit after you use your card on eligible Delta in-flight purchases of food, beverages, and audio headsets.
- $350 Annual Fee
This companion ticket can be used by a friend or family member and is valid for a single companion in economy class on a paid ticket, covering the entire price apart from taxes and government fees.
4. Travel Credits
Using rewards toward flights, hotel stays, and car rentals isn’t the only way your credit card can offset summer travel spending. Some even give you money back for travel purchases or credit toward various travel-related expenses.
Kind of amazing, right?
Here’s a look at some cards that offer annual travel credits worth hundreds of dollars, just for being a cardmember:
- Earn 75,000 bonus Points after spending $6,000 in the first 3 months of account opening.
- Earn 12 Points per $1 spent on Hotels, Car Rentals, and Attractions booked on cititravel.com and 6 Points per $1 spent on Air Travel booked on cititravel.com
- Earn 6 Points per $1 spent at Restaurants including Restaurant Delivery Services on CitiNights℠ purchases, every Friday and Saturday from 6 PM to 6 AM ET. Earn 3 Points per $1 spent any other time
- Earn 1.5 Points per $1 spent on All Other Purchases
- Up to $300 Annual Hotel Benefit: Each calendar year, enjoy up to $300 off a hotel stay of two nights or more when booked through cititravel.com.
- No Foreign Transaction Fees
Additional Disclosure: (The information related to Citi Strata Elite℠ Card has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.)
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
- Earn 175,000 Membership Rewards® points after you use your new card to make $8,000 in purchases in your first 6 months of Card Membership
- Earn 5X Membership Rewards® points for flights booked directly through airlines or American Express Travel, on up to $500,000 on these purchases per calendar year. Also earn 5X Membership Rewards® points on prepaid hotels on AmexTravel.com.
- $600 annual hotel credit, $200 annual airline fee credit, $200 per year Uber cash credit, $300 per year digital entertainment credit, and more.
- Platinum Card Members have unlimited complimentary access to all locations of The Global Lounge Collection®, including 1,550 airport lounges.
- Apply with Confidence: Know if you’re approved for this Card with no credit score impact
- Fee Credit for Global Entry, TSA PreCheck®, CLEAR® Plus Membership
Note that these cards charge large annual fees to help offset the cost of the perks they dish out.
You must pay for qualifying travel purchases with your credit card to earn your travel credits, and some cards may also require you to book your accommodations through the card issuer’s travel portal.
Review your account to understand how you can qualify for these reimbursements so you don’t miss out on the benefit and free money. For example, The Platinum Card® requires you to first enroll in several of its benefits before you make the required purchase to earn the credits.
5. Free Hotel Nights
Snagging a travel credit for a hotel booking is certainly a nice financial perk, but it’s not the only way to save on accommodations. Look for a credit card that offers free hotel stays to stretch your travel dollars even further.
For example, the World of Hyatt Credit Card offers cardholders an extra free night at any Category 1 to 4 Hyatt hotel as long as you hit the spending minimum requirement in a calendar year. Meanwhile, other hotel-branded credit cards offer free night certificates, issued typically on your account anniversary every year.
For example, the IHG® Rewards Premier Credit Card offers a free night certificate every anniversary that can be redeemed at any IHG hotel retailing for up to 40,000 IHG points per night. In some cases, you may be able to upgrade your room or redeem it at a premier property by topping off the certificate with points.
(Non-Monetized. The information related to World of Hyatt Credit Card and IHG® Rewards Club Premier Credit Card was collected by CardRates.com and has not been reviewed or provided by the issuer of this product. Product details may vary. Please see issuer website for current information. Product details may vary. Please see issuer website for current information. CardRates.com does not receive commission for this product/card.)
6. Complimentary Checked Bags
Checking luggage makes traveling through an airport easier because you have less stuff to lug around, but it comes with a hefty fee. In fact, average checked baggage fees range from $30 for the first checked bag to $40 for the second and up to $150 for a third.
Although packing light and traveling with a carry-on is one way to dodge this pesky fee, using a credit card may be a better solution.
That’s because most co-branded airline miles credit cards offer free checked bags for flights reserved on the associated airline as long as you paid for the trip using that card. In some cases, you may even get a free bag for a companion or other travelers on the same itinerary, offering further travel savings.
Several Delta SkyMiles credit cards offer one free checked bag for the cardholder along with up to eight others traveling on the same itinerary. Just be sure to attach your Delta SkyMiles number to your reservation.
7. In-Flight Discounts
Most airlines have done away with complimentary food and snacks these days unless you’re flying first class. And you are going to have to buy a wifi plan if you expect to access the internet during the flight.
The good news is some credit cards help you pay less or avoid these fees altogether.
Take for example the U.S. Bank Altitude® Reserve Visa Infinite® Card, which offers 12 complimentary Gogo® in-flight wifi passes per year, or the United Explorer Card, which will give you an extra 25% back as a statement credit on purchases of food, beverages, and wifi onboard United flights.
(Non-Monetized. The information related to United Explorer Card was collected by CardRates.com and has not been reviewed or provided by the issuer of this product. Product details may vary. Please see issuer website for current information. Product details may vary. Please see issuer website for current information. CardRates.com does not receive commission for this product/card.)
8. Airport Lounge Access
Anyone who has ever been stuck at an airport, whether due to a flight delay or long layover, knows how incredibly uncomfortable and expensive it can get trying to pass time in the terminal before takeoff. That’s where your credit card can come to the rescue.
Some cards offer access to exclusive airline lounges at no charge. These lounges offer more comfortable seating, complimentary wifi, and free food and refreshments.
A few standout examples include the Capital One Venture X Rewards Credit Card, which offers unlimited access to all-inclusive amenities at the Capital One Lounge and at participating Priority Pass™ lounges worldwide.
- Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
- Receive a $300 annual credit for bookings through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options
- Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
- Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
- Earn unlimited 2X miles on all other purchases
- Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
- Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Top rated mobile app
The Citi® / AAdvantage® Executive World Elite Mastercard® provides full membership to Admirals Club lounges and access for up to two guests or immediate family members traveling with you.
- Earn 70,000 American Airlines AAdvantage® bonus miles after making $7,000 in purchases in the first 3 months of account opening
- Complimentary Admirals Club® membership
- No Foreign Transaction Fees on purchases
- Earn 10 AAdvantage® miles for every $1 spent on eligible hotels booked through aadvantagehotels.com and on eligible car rentals booked through aadvantagecars.com
- Earn 4 AAdvantage® miles for every $1 spent on eligible American Airlines purchases
- First checked bag is free on domestic American Airlines itineraries for you and up to 8 companions traveling with you on the same reservation
Additional Disclosure: The information related to Citi® / AAdvantage® Executive World Elite Mastercard® has been collected by CardRates.com and has not been reviewed or provided by the issuer or provider of this product or service.
Though this perk is often found on credit cards that charge an annual fee, it usually pays for itself when you compare the cost to access the lounge without the benefit.
9. Travel Insurance
A surge in travel cancellations over the last couple of years due to health and safety concerns related to the COVID-19 pandemic has caused many Americans to lose money. According to a survey by Forbes Advisor, 50% of Americans surveyed have canceled a trip due to COVID, and 83% of those who canceled lost money as a result.
Whether you’re looking to safeguard your vacation against cancellation, interruption, or simply get added coverage for a rental car, think twice about how you pay for your trip. Your credit card may provide some travel insurance perks at no additional cost.
The Chase Sapphire Credit Cards offer a range of travel insurance coverage, including Trip Cancellation and Interruption Insurance, Auto Rental Collision Damage Waiver, and even Lost Luggage Insurance, to give you peace of mind and protect your budget.
The United Explorer Credit Cards offers similar insurance benefits, plus Baggage Delay Insurance, Trip Delay Reimbursement, and Travel Accident Insurance.
10. No Foreign Transaction Fees
Traveling abroad isn’t cheap and it’s not just airfare, hotel, and sightseeing activities that can bust your budget. Even something as small as foreign transaction fees add up quickly.
Many credit and debit card issuers charge foreign transaction fees for any purchase made in a different currency at a rate of approximately 3% of the total sale.
This may not sound like a lot, but travelers on extended trips should consider looking for a credit card that waives this fee to save more money. For instance, the Capital One Quicksilver Cash Rewards Credit Card promises no foreign transaction fees and no annual fee, so you can enjoy this perk completely for free.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 18.49% – 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
While some credit cards that waive foreign transaction fees charge an annual fee, plenty don’t, so do some research before signing up.
11. Priority Boarding
There’s nothing more irritating than boarding a plane late and missing out on overhead space to store your carry-on bag. While you can pay a fee during booking to board early on many flights, using the right credit card can ensure you avoid long lines and dodge this extra charge.
For instance, the United Explorer Card allows the primary cardmember and companions on the same reservation to board United-operated flights ahead of general boarding.
12. TSA Precheck/CLEAR Reimbursements
Expect more delays at the airport during peak travel seasons such as summer, including long lines to get through security. While getting to the airport with plenty of time to spare before your departure time is one surefire way to ease the stress of traveling, your credit card can come to the rescue too.
In fact, some credit cards offer a reimbursement of the application fee for TSA Precheck for domestic travelers or reimbursement of the application fee for Global Entry for international travelers. Some credit cards will also reimburse the annual fee for CLEAR membership.
These services offer an expedited airport security screening process so you can skip long lines and avoid having to remove shoes, belts, jackets, liquids, and electronics from your carry-on luggage.
Both the Capital One Venture Rewards Credit Card and the Chase Sapphire Reserve®, among several others, offer cardholders a statement credit for Global Entry or TSA PreCheck®. Just make sure to pay the application fee using the associated card and send the receipt for reimbursement, which will be applied as a statement credit through your online account.
The Platinum Card® offers statement credits each year when you use its credit card to pay for your annual CLEAR membership.
Save On Your Next Summer Vacation
As you can see, travel cards have several features that can help you substantially save on your next vacation. Rewards aren’t the only way to earn free travel. If you choose the right card, you can acquire travel insurance, airline perks, annual travel credits, lounge access, free hotel stays, and many other perks that can make your next trip both cheaper and more comfortable. Choose wisely, and safe travels!
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