Tap and (let’s) go: 37% of credit card holders got their most recent card to travel
As more Australians start to jet off on holiday, a significant number are planning to leverage their credit card for the trip, according to new research by Finder.
A nationally representative survey of 581 Australians with a credit card revealed more than 1 in 3 (37%) got their most recent credit card for reward points or flight purposes.
According to Finder's Consumer Sentiment Tracker, Australians are itching to start travelling again, with more than 1 in 2 respondents (55%) planning a holiday in the next 12 months.
While 1 in 3 (34%) Aussies are planning a holiday within the country, a further 11% are planning to travel both domestically and abroad and 10% are planning to travel overseas only.
Amy Bradney-George, credit card expert at Finder, said there were many benefits to using a rewards credit card, as long as they're met with some caution.
"When used wisely, rewards credit cards are the easiest way to get bank rewards, frequent flyer points or cashback as you spend.
"The crucial thing is to pick a rewards card that best meets your individual needs and how you spend money – that's why it's so important to carefully compare different options."
Finder's research shows men (42%) were more likely than women (30%) to say they got their credit card for reward points or flights.
Bradney-George said credit cards gave a level of both financial security and flexibility while travelling.
"Most credit cards offer 24/7 security services that you can use when you're travelling.
"Some let you put a temporary lock on the account if you've lost your card and want to look for it – which is handy when you're overseas," she said.
When it comes to picking a credit card to help pay for your next flight, Bradney-George says there are a number of things to consider.
"Rewards credit cards often come with extra perks like travel insurance, purchase insurance, airport lounge passes, concierge services and lifestyle and entertainment offers, so be sure to check for these valuable extras before signing up.
"The most obvious perk of these cards is that you earn rewards of your choice, for money you were going to spend anyway.
"That means you can do all your Christmas shopping on your card and use that spending towards frequent flyer points.
"However, make sure you only spend what you can afford to pay off so that you don't end up with interest charges that take value away from the points you've earned," Bradney-George said.
|What are the top reasons you got your most recent credit card?|
|Make a big purchase||20%|
|To establish my credit||20%|
|Pay off debt/do a balance transfer||7%|
|Manage a drop in income||5%|
|Source: Finder survey of 581 respondents with a credit card, September 2021|
|Respondents could tick all that apply|
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