Yahoo Finance The Best Cards for Every Type of Summer Vacation
In credit cards, as in life, it is rarely true that one size fits all.
Some folks love miles and points. Others love cash back. Still others wouldn't go near a credit card if they had to. That's all well and good. The more you know about yourself financially -- your likes, dislikes and tendencies -- the more likely you are to make smart choices.
[See: Best Credit Cards.]
Here's the thing, though: Something can be the right choice in one instance and wrong in another. That's certainly the case when it comes to credit cards and vacations. For example, you're probably better off choosing a different credit card for the Great American Summer Road Trip than for your European adventure.
With that in mind, here's a list of the best cards for your summer vacation, whichever type you're planning.
The Great American Road Trip: Chase Freedom Unlimited
Spend $500 and get $150 back. That can be huge when you're taking a family trip. You won't see the savings immediately like you might with a gas card that saves you money at the pump, but once you're back from the trip, it'll be great to know that you'll get that $150 back. That equates to a whole lot of gas, several family meals or even a night or two of hotel stays, depending on your tastes.
The perks aren't just about that one bonus, though. You'll also get 1.5 percent cash back on the rest of your trip expenses without having to search for a specific type of gas station or chasing rotating bonus categories. Plus, there's no annual fee.
Staycation: Citi Double Cash
Staycations are all about keeping things simple. You don't have to mess with airports, hotels, luggage, rental cars and all the other hassles that come with travel. You just want to take it easy. Citi's Double Cash card is your best choice in that case.
It's simple. You get 2 percent cash back on every purchases everywhere. (Actually, you get 1 percent when you buy and 1 percent when you pay. Add it up and it's 2 percent on each purchase unless you don't pay -- in which case you've got bigger problems than just missing out on rewards cash.) There are no rotating categories to chase, and no confusion over how much cash back you get for various types of purchases. Just 2 percent every time so you can enjoy your time off with as little muss and fuss as possible.
[See: 12 Frugal Ways to Save on Vacation.]
Taking Flight (Whether You're Traveling in the U.S. or Going Overseas): Chase Sapphire Preferred
This is a great card for travelers. It comes with a 50,000-point bonus when you spend $3,000 in the first three months. That's one of the biggest bonuses in the market.
The best news, however, is that you can use those miles in many different places. You can transfer them on a 1-to-1 basis to many different airline or hotel loyalty programs. (Those include Southwest Airlines Rapid Rewards, United MileagePlus, British Airways Executive Club, Korean Air SKYPASS, Singapore Airlines KrisFlyer, Virgin Atlantic Flying Club, Hyatt Gold Passport, IHG Rewards Club, Marriott Rewards and The Ritz-Carlton Rewards.) That means that those 50,000 Chase points can turn into 50,000 Southwest miles or 50,000 United miles. That flexibility is a big deal. Also, you get double points on travel and dining at restaurants, so you'll be getting some extra rewards bang for your buck on your trip.
The card also comes with no foreign transaction fees. That's important because international travel is expensive enough without having to tack on an extra 2 to 3 percent just for buying something with your card in a different country. In addition, the card is also chip-enabled and comes with travel protection benefits such as trip cancellation or trip interruption insurance, all of which can help bring you peace of mind when you travel.
[See: 6 Ways to Treat Yourself on a Budget.]
Still, One Size Does Not Fit All
While the above cards can be great choices, they're still not perfect for everyone.
The Loyalist
If you're loyal to a certain airline or hotel chain, you should seriously consider getting the card for your favorite brand. For example, the Hilton HHonors American Express card offers 50,000 Hilton HHonors points when you spend $750 in the first three months, as well as big bonuses -- 7x points -- for spending at Hilton properties. If you're a frequent Hilton customer, that offer shouldn't be ignored.
While it's great to be brand-loyal, don't discount the possibility that multiple cards might work with your favorite brand's rewards program. Southwest Airlines fans, for example, should seriously consider getting both the Southwest Airlines Rapid Rewards Premier Credit Card and the Chase Sapphire Preferred card (Chase points can transfer to Southwest on a 1-to-1 basis) in order to get the most Southwest miles.
The Student or Recent Graduate
Many of the aforementioned cards might not be available to folks who are just getting started with credit -- and if they are, they likely come with a high APR.
That doesn't mean you're out of options, however. The Discover It Secured card can be a good choice for those looking for their first card. You have to put a minimum security deposit of $200 down to get the card, but once you do, you'll be able to earn 2 percent cash at restaurants and gas stations -- a big help on a summer road trip. Plus, at the end of your first year, Discover will double the cash back that you earned that year. While that won't help you with this summer's vacation, it certainly could next summer.
The Bottom Line
There are so many credit card options out there, and choosing the right one can be daunting. But if you give some thought to what you want out of your card and shop around, you can save yourself real money on this summer's big vacation -- and maybe even on next year's, too.
Matt Schulz is the senior industry analyst at CreditCards.com, a site dedicated to helping people make smart decisions about obtaining and using credit. You can follow him on Twitter at @matthewschulz.
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