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Here’s How You Can Go on a Free Vacation Using Credit Cards

  • Author :
  • TATA AIG Team
  • Published on :
  • 01/11/2023
  • 2 min read

Travelling is something everybody is fond of. We plan our dream vacation and holiday with our loved ones and family but often cancel it due to budget constraints. Even on holidays, we keep ourselves on a very tight budget, which takes the fun out of vacation. But what if we say there is a way to get a free vacation?

While it may seem a lucrative lie, having a free vacation using credit cards is possible. There are various best credit cards for travel with no annual fee that offer discounted bonuses to cut travel expenses. Further, if you are planning a trip, it is best to have travel insurance to protect your finances from unwanted threats.

Let's understand in this blog how to travel for free with credit cards.

How to Travel for Free with Credit Cards?

Credit card companies offer lucrative rewards and bonuses to their consumers for using their credit cards. Here is how you can travel for free using credit cards.

To travel for free with credit cards, you need to apply for the credit cards. Sign up for a credit card with huge welcome offers.

Generally, credit card companies provide credit points on every transaction made through credit cards. These reward points can be used on travelling to access free benefits. Some transactions have flat reward points, while some offer bonus points on specific purchases.

With a credit card, welcome offers and ongoing rewards on every transaction can help you earn points that can be used on flight booking, hotel expenses and more.

Benefits of Using Credit Cards for Travel

There are a plethora of benefits offered by credit card companies to their consumers, which we are going to discuss below:

Air Mile Earnings The first benefit of using a credit card is air mile earning points. Individuals can earn air mile points on every purchase or transaction using a credit card. Once they earn enough air miles points, they can redeem them to book a flight ticket. It benefits individuals who used to travel frequently as they can save flight ticket expenses.

Free Lounge Access A credit card with free airport lounge access is one of the most popular benefits. Frequent travellers used to take advantage of free lounge access benefits offered by credit cards while on their trips. It is the most loved credit card company offering, especially when the flights are delayed. With free lounge access offered by credit cards, travellers can enjoy and relax in the lounge area with unlimited access to food and beverages.

Flights Upgrades Another benefit consumer gets while travelling using credit cards is flight upgrades. Indeed, having premium seats in business class or first class is desirable, but these seats are expensive. However, one can secure upgraded airline seating using credit card benefits and offers.

Lower Forex Rates Several credit cards offer lower forex rates of up to 2% foreign currency markup. It is very helpful for those travelling abroad to make payments. Individuals can save on conversion charges applied to foreign payments using these cards.

Fuel Surcharge Waiver Lastly, if you are travelling by road, fuel expenses are a thing that can put a burden on your pockets. But what if there is a way to save fuel expenses? Credit cards allow these benefits to their consumers to save their fuel expenses by not paying any surcharge fees at gas stations.

Ways of Using Travel for Free with Credit Cards

If utilised correctly, credit cards can be significant assets while planning any international or domestic trip. There are several ways to travel for free with credit cards. Some of them are listed below:

Keep an eye on credit card offers The first way to access travel benefits using credit cards is to keep an eye on offers and rewards offered by the company. You won't know what the credit card company offers until you explore all the options. Various credit card companies have different offers for their consumers. Some companies have a massive welcome reward, while others offer credit points on every transaction via credit card. While planning a vacation, you can use these points to buy plane tickets, hotel tickets, etc.

Use credit cards for purchases The more you use credit cards, the more points you earn that can be utilised on vacation. Credit card companies offer attractive discounts to consumers that help them save a few bucks on purchases, and on top of that, the consumer also gets rewards points. Individuals used to have more than one credit card because of the benefits offered by credit card companies. It is best to collect reward points while making transactions using credit cards, and once you have enough credit card points, use them for hotel bookings, flight seat upgrades, etc.

Sign up for credit card loyalty and miles program Another way to travel for free using credit cards is to sign up for miles and loyalty programs offered by certain airlines and hotel chains. Some airlines and hotel chains have tied up with banks to promote the use of their services. So, while using a credit card for booking a flight from a listed airline, individuals will get loyalty offers such as air miles, flight upgrades, etc. However, users need to sign up for their loyalty programs to avail the benefit.

Complete and timely repayment To avail of all kinds of benefits offered by credit card companies, one thumb rule is to make complete and timely repayment of credit card bills. By repaying credit card bills on time, you ensure a better credit card score that opens the gate for better offers from credit card companies. On the other hand, failing to pay credit card bills on time will incur fines and degrade your offers.

How to Choose the Best Credit Cards for Travel?

There is no denying that having a credit card for travelling is a great asset. With so many options available in the market, choosing the best credit cards for travel with no annual fees or less annual fees can be overwhelming. Here are some points that must be considered when choosing travel credit cards.

Annual Fee The very first thing to look for before taking out a credit card service is their annual fees. No matter how many travel benefits or offers a credit card company has, it is not worth it if they have a high annual fee. The cost of managing a credit card will put an extra burden on your budget if it has a high annual fee. That's why it is best to go with the best credit card with no annual fee or reasonable fees and a handful of benefits to avail of their services.

Sign-up Bonus Another thing to consider while choosing a credit card is the companies' sign-up or welcome bonus. Almost every credit card company offers some welcome rewards and vouchers like flight tickets, bonus air miles, etc that can be beneficial while planning a trip. Always choose a credit card company with a high welcome bonus and reasonable annual fees.

Rewards Another thing many credit card users overlook is the rewards benefits offered by the company. If you don't know what kind of reward your credit card offers, you will hardly take advantage of it. So it is best to learn about all the rewards and how you avail the benefits without burdening your annual budget. It is best to pick a credit card company whose rewards and offers align with your travel requirements.

Lounge Access This is the offering provided by almost every travel credit card company, however some only offer access to domestic lounges. That's why checking if the credit card offers international and domestic lounge access is necessary. Not just this, look for how many visits to the lounge a credit card company offers in a year. If you are a frequent traveller, considering lounge access while taking out credit card services would be beneficial.

Other Benefits Lastly, if you are signing up for credit card services, it is best to check other benefits, such as shopping, dining, movie offers, etc.

Importance of Using Travel Insurance for Vacation

While having all these travel-related benefits with credit cards are essential, having a travel insurance policy is also needed. The travel insurance policy secures the whole trip from any unforeseen circumstances that arise during travel.

Individuals with the best travel policy don't have to worry about financial losses such as flight cancellations, baggage loss, etc. The insurance company will reimburse for all the expenses.

Not just this, a travel insurance policy will cover medical emergencies, hospital stays, and even emergency medical evacuation, ensuring you receive the necessary care without breaking the bank. Further, travel insurance often includes personal liability coverage, protecting you from legal expenses in such situations.

However, with multiple insurance choices, it is best to compare travel insurance plans to get the coverage that fits your travel requirements. Tata AIG offers an affordable international travel insurance policy that starts at ₹40.82 per day, while the domestic travel policy commences at ₹26 per day.


The travel industry is booming, so service providers offer lucrative offers to individuals who love to travel. Travelling should not be a hefty investment if you plan it carefully. With credit card usage, you can save money while planning your trip.


Is it reasonable to use a credit card on vacation?

Many benefits can be achieved using a credit card on vacation which help in saving a lot of money. Depending on your credit card and the type of benefit it offers, you can use it on your vacation.

How do I travel with my credit card?

Travelling with a credit card can be convenient and secure. However, ensure your credit card is valid and has a sufficient credit limit for your trip.

Can I pay for my flight ticket with a credit card?

While booking flight tickets, it is best to use credit cards since there are many discounts and offers such as airline miles points, lounge access, etc one can avail.

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