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If you’ll be traveling a lot this summer, it may be worth looking into whether it makes sense for you to get a new credit card. Read on to learn why. 

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If you are planning on heading out on vacation this summer, it may be worth looking into whether getting a new credit card first makes sense.

A good travel rewards card could actually help you to reduce the costs of your vacations — as long as you make sure you’re paying off the bill on time and not racking up a balance you’ll have to pay interest on.

Wondering how a credit card could actually help you keep more money in your checking account? Here are four ways your travel rewards card could help you spend less while still enjoying vacations that make wonderful memories.

1. You could earn a sign-up bonus

Signing up for a new credit card often entitles you to a welcome bonus if you meet certain spending requirements. With some cards, the bonus for new cardmembers will provide enough miles that you can actually score a free airline ticket. If you can get a no-cost ticket to your summer vacation destination, this will leave you with a lot more cash in your wallet.

If you won’t be able to meet spending requirements in time to earn enough points to redeem your miles for a trip this summer, you can still save by taking advantage of a sign-up bonus. If you charge your summer travel on a card that gives you $500 cash back as a bonus, say, for spending $3,000 in the first three months of card ownership, then you should more easily be able to meet the spending requirements and can eventually earn that cash back that will defray the total cost of your trip.

2. You can earn bonus travel rewards

If you are planning on traveling often, a new card that gives you bonus rewards for travel could be a huge money-saver. If you are able to earn extra rewards for booking flights, booking hotels, or covering other vacation expenses, these rewards will effectively make your vacation cheaper.

Say your rewards end up giving you a bonus worth 5% of your travel-related purchases. If you spent $4,000 on a vacation and you get 5% of that amount back (either as cash back or in the value of the miles or points you earn), you’d end up with your trip effectively costing you $200 less. That’s a huge benefit.

3. You could enjoy airline perks

Depending on the card you pick, you may be able to get airline lounge access as a cardmember perk. This would allow you to relax in comfort — and also to save on food at the airport, since you could eat in the lounge instead of paying for a costly restaurant meal.

Many airline cards offer other benefits as well, such as free checked bags. If you can save about $30 a bag or more (depending on the airline), this is a meaningful additional savings — especially if you have multiple trips planned that you were planning on checking a bag for.

4. You could save trip insurance costs

Finally, it’s common for travel rewards cards to offer various kinds of insurance, such as rental car coverage, trip cancellation insurance, trip interruption insurance, or lost luggage insurance.

If you would have normally purchased some of these policies and you now don’t have to because of your credit card, you’ve found yet another way to save money. And, if you do end up having to cancel a trip or deal with lost luggage and your card provides insurance you otherwise wouldn’t have had, your card could save you a fortune.

Start looking for travel cards today that offer these perks, so you will be ready to enjoy the savings when your big summer vacation day arrives.

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