Think Again About That StayCation, The Right Credit Card Could Make a Vacation Affordable

This article comes from our friends at Card Hub, a website that helps consumers find the best credit cards for their needs.
The weather is hot, the kids are out of school, and for many of us, the air conditioning is broken thanks to summer storms. In other words, it’s the perfect time for a vacation to a nice beach or lake somewhere. The only problem is many of us are still feeling the effects of the financial downturn and are leaning toward a staycation or have already exhausted our summer travel budgets. As it turns out, though, if you have excellent credit, a summer excursion doesn’t have to devastate your bank account, as the right credit card could help you save up to $500.

This might seem too good to be true, but pinch yourself and see – you’re not dreaming. Credit card companies have been offering increasingly lucrative initial rewards bonuses, which give you an infusion of points, miles, or cash back simply for getting a new card and either making one purchase or spending a certain amount during the first few months. The best ones can therefore score you free flights, free hotel nights, extensive savings on gas, or just cash to replenish your savings.

Without further ado, here are the helpful credit card offers to which I have alluded:

• Chase Sapphire Preferred Card – Spending at least $3,000 during the first three months with this card scores you either $500 to spend on travel accommodations or a $400 statement credit. It doesn’t charge an annual fee during the first year either ($95 thereafter).

• Hilton HHonors Surpass Credit Card – The 60,000 bonus points that this card offers – 40,000 after first use and 20,000 after you spend $3,000 –is enough for 1 night at a Waldorf Astoria-type 5-star hotel or as many as 8 nights at the likes of the Hampton Inn. All it costs you is a $75 annual fee.

• British Airways Credit Card – Everyone gets 50,000 bonus miles after the first use of the British Airways Credit Card. Heavy spenders get up to 50,000 more depending on how much they charge during the first year – 25,000 miles if they charge $10,000 and 50,000 miles if they charge $20,000. Spending $30,000 within a year will also get you a voucher for a free companion ticket as well. It’s got a $95 annual fee.

Now, if you’re uncomfortable opening a credit card just for its initial bonus, there are a few cards that offer excellent ongoing rewards in addition to a bit extra upfront, including the following offers:

• PenFed Platinum Rewards – Not only does this card offer a $250 initial bonus, but it also gives you 5 points per dollar spent on gas, 3 points on supermarket purchases, and 1 point on everything else. Pentagon Federal Credit Union membership is required, but it’s open to everyone for a one-time $15 fee.

• Capital One Venture Rewards Card – The Venture Card offers a $100 initial bonus as well as the equivalent of 2% cashback across all purchases, provided that you redeem the miles you earn for a travel-related expense. It doesn’t have an annual fee in the first year and only charges $59 per year after that.

• Blue Cash Preferred from American Express – Though this card has a $75 annual fee, it’s one of the best everyday spending cards on the market, offering 6% cashback at supermarkets, 3% at gas stations and department stores, and 1% on everything else. It also gives you a $150 initial bonus if you spend $1,000 during the first three months, which effectively cancels out the initial fee.

It’s important to note that these cards will really only help folks with excellent credit. This shouldn’t come as too much of a surprise, however, given just how attractively lucrative they are. In fact, issuers are using the obvious appeal of these offers to draw in people with excellent credit to add some much-needed stability to their customer bases. What’s more, if you are planning to travel abroad, make sure to get a credit card with no international fees. All of the aforementioned cards fit the bill, except the Hilton Card and the Blue Cash Amex, which both charge 2.7% for transactions processed outside of the US. Happy travels!