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There are so many different credit cards on the market, it can be hard to decide which one to apply for. If you like to travel and are always daydreaming about your next trip, you may want to consider a travel credit card. These cards can offer travel-related benefits, such as enhanced hotel or airline status, free upgrades, or no charge for baggage. Travel credit cards also earn rewards that you can use to offset the cost of travel.

However, deciding what type of card to get and using your credit cards rewards for travel can be complicated. The same holds true for learning how to maximize your rewards once you do settle on which plastic you want.

Here, some guidance to help you maximize your credit card rewards for travel, including:

•   How to find the best credit card for travel rewards

•   How to use rewards for travel

•   How to get the most out of your travel credit card

Types of Credit Card Rewards for Travel

Credit card rewards come in several types. When it comes to using rewards for travel, consider these options to find what best suits your needs:

•   Airline points and miles cards: With these credit cards, you typically earn miles or points on purchases made with the card. These can be redeemed with the particular airline’s rewards programs. Examples of airline credit cards include the Citi AAdvantage Mastercard and United Explorer Card.

•   Hotel credit cards: With this kind of travel credit card, you typically rack up points that can be used for rewards (such as upgrades or free nights) at a particular hotel chain. For instance, the Marriott Bonvoy Boundless Credit Card, Hilton Honors American Express Card, and IHG Rewards Premier Credit Card are all examples of these co-branded cards.

•   Flexible currency cards: With these cards, you are not locked into a single airline or hotel chain. The points/miles and rewards you earn can be transferred to different programs, via Ultimate Rewards, ThankYou Points, and Membership Rewards.

You might use a conventional rewards credit card that earns cash back and lets you redeem your rewards for cash in the form of a statement credit, bank transfer, or check. You can then apply this toward travel-related expenses. The best rewards credit card for travel will be the one that suits your needs and spending style; the idea is to get one and use it frequently.

Credit cards that earn points typically let you redeem those points for things like travel, cash back, gift cards, and merchandise. The value of points will vary, but generally, a point is worth about $0.01. However, you may get better value when you redeem points for things like travel.

There are many factors to consider when deciding between credit card miles vs. cash back vs. points cards. Cash-back cards often have low or no annual fees, and you can redeem your cash back for any purpose. However, they don’t usually have high-value welcome offers and may not offer as many benefits as other rewards cards. Credit cards that earn points or miles offer travel-related benefits and can help reduce the cost of travel, but they may charge large annual fees, and the value of the points and miles may vary.

Recommended: What Is the Average Credit Card Limit and How Can You Increase It?

5 Steps for Using Rewards for Travel

Here are five easy steps for using your rewards for travel.

1. Set a Travel Goal

First, set a travel goal. Decide where you want to go and when. If you are flexible on dates, you can save money or points. For example, flying a few weeks before Christmas instead of a few days before can save you a lot of money.

Is there a certain hotel or resort you dream of staying in? Do a little research to see what their rates are like. You might see that your target dates are at a time of high demand and cost due to a special event at that moment. You can then move your date a bit to avoid those extra-high prices. Or perhaps you are looking for just a two-night stay at a hotel near Lake Como, Italy, but all the lodging there has three-night minimums in summer. This kind of intel can be very useful as you plan.

Also, once you determine your goal, you can begin to develop a travel budget and start a travel fund to keep your money secure as you save and earn some interest.

2. Figure Out the Miles and Points You Need

Once you know where you want to go and when, you should see which miles and/or points you will need to get there. Scope out which airlines fly to your destination from your home airport (or another nearby), and which airlines they might partner with.

As you research routes that you might take, get a rough idea of how many miles or points the flights might cost. Be aware of blackout dates and other special considerations.

3. Research Airline and Hotel Loyalty Programs

Most hotels and airlines have loyalty programs in which you earn and redeem points and miles with that hotel or airline. Every hotel and airline has its own point system, though some have networks of partners, in which rewards can be used at multiple brands.

Airline partners within the same airline alliance allow you to redeem miles on flights operated by their partners. For example, Star Alliance includes airlines such as Air Canada, TAP Portugal, United Airlines, and many more. If you are looking at a flight, you may want to look up potential partners, as it is sometimes cheaper to book that flight with miles from a different partner.

4. Shop for Credit Cards That Will Help You Meet Your Goal

Once you know which airlines and hotels will work best for your travel goal, you can figure out which credit card rewards can help you reach that travel goal.

Credit cards with rewards can be an example of how families afford to travel. You can earn points and miles every time you swipe or tap and then redeem them for travel expenses, like flights and hotels.

You may want to apply for a credit card with the specific airline or hotel, or one that offers points that are transferable to airline and hotel partners (like Chase Ultimate Rewards or American Express Membership Rewards). Be sure to research which airlines and hotels these rewards programs partner with. You should also compare things like annual fees, welcome offers, earning structures, and benefits like travel insurance. Make sure you understand how credit card travel insurance work; that can be an important perk.

5. Track Your Progress

Once you have signed up for the credit card(s) that will help you meet your travel goal, there are a few things that you will need to track. If your credit card has a welcome bonus after spending a certain amount, you will need to track your progress toward that minimum amount. Some banks track this for you in your account, but others do not. Some other things that you may want to consider tracking include:

•   Spending requirements

•   Spending goals

•   Deadlines

•   Bonus reward categories

•   Points expiration dates

•   Hotel points to help save on hotel costs

•   Frequent flier miles

Recommended: Getting the Most Out of Your Credit Card Rewards

Tips for Maximizing Your Cards

Maximizing your cards is important to get the most rewards that you can. Follow this advice to help squeeze every last drop of value from your cards.

Label Your Cards

If you have multiple credit cards, it can be difficult to remember which one to use for which purchase. You may have one card that earns more on dining, another that earns more on gas, and a third that earns more on groceries. Some credit cards have rotating bonus categories that change throughout the year and may offer a short-term bonus earning opportunity, like extra points on gas purchases for the next few weeks.

If you have trouble remembering which card to use for which purchase, you can try using stickers or tape on the card with words like “gas” or “dining.” This can help you find the right card at the right moment. This strategy can also offer some helpful guidance if you have a partner who is not as invested in maximizing their cards as you are.

Time Large Purchases Strategically

If you know that you will have a large or several large purchases coming up in the near future, you may want to plan your credit card strategy around them. You might apply for a new credit card with a welcome offer shortly before making the large purchase. Some credit cards have welcome offers that require you to spend a certain amount during the first few months. If you would not otherwise spend that amount of money, timing it around the large purchase could help you meet this minimum spend and earn a hefty bonus (say, extra points).

Utilize Shopping and Dining Portals

Shopping and dining portals can give you extra miles, points, or money when you complete an eligible purchase. This involves going through a certain platform when making a purchase so that you can earn extra cash back, points, or miles. In this way, you can stack these portal rewards with other rewards, like the ones that you are earning on purchases on your credit card.

•   Portals can be through an airline, credit card, or independent cash-back company. Some popular airline portals include American Airlines’ AAdvantage eShopping and AAdvantage Dining, Southwest Airlines’ Rapid Rewards Shopping and Rapid Rewards Dining, and Delta Air Lines’ SkyMiles Shopping and SkyMiles Dining, among others.

•   Credit card companies that offer their own online shopping portals include Chase, Capital One, and Barclays. Popular cash-back portals include Rakuten, Mr. Rebates, and Top Cashback.

•   To use a shopping or dining portal, you would sign up for an account with the specific portal program. When you are ready to make a purchase at a retailer, you can go to the portal program’s website first, and click through there to the retailer to complete your purchase. You could also download a browser button for the program, and then click on the button before you complete your purchase.

•   If you want to compare which portal will give you the best return for a retailer, CashbackMonitor.com lets you search by stores or rewards types.

Try Apps

If you find yourself with points and miles in a variety of reward systems (like various airlines, hotels, and credit card companies), you may have a hard time keeping track of it all. Apps, like Travel Freely and MaxRewards, can help you organize your credit cards, rewards, points, and miles. Apps can help you easily see which credit card to use for which purchase, how many rewards you have in various systems, view upcoming annual fees, and more.

The Takeaway

Credit card rewards can help make travel more affordable. Once you have figured out which credit card can enable you to reach your travel goals, learning how to maximize your cards will likely boost the rewards you reap. By labeling your cards, timing large purchases, utilizing shopping and dining portals, and using apps, you may get closer to your dream vacation that much more quickly.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

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Photo credit: iStock/martin-dm

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you like to travel and appreciate the finer things in life, you might dream of a posh vacation. Maybe your fantasy is staying at a sprawling resort by the sea or an urban boutique hotel with a spectacular rooftop bar. Or perhaps you dream of immersive experiences, liking a private cooking class with a local chef or a wine-tasting tour through Napa Valley.

But then reality kicks in. You look at your actual budget and realize you probably can’t make that fantasy a reality.

Or could you? It just so happens there are a few ways to snag luxury travel for less. Learn more here, including:

•   Which destinations can help you afford luxury travel

•   Tips for traveling posh for less

Average Cost of an Affordable Luxury Vacation

It’s hard to give just one number here, since costs will vary depending on the number of travelers, your destination, and how long you plan to stay. But expect to pay a few thousand dollars.

Recent surveys indicate that the cost strictly for travel (airline tickets, parking, car rental) for a family of four on a four-day domestic trip can easily nudge close to $2,000. And that’s not including lodging or food, let alone expenses for attractions and entertainment, which can easily add another $1,000 to that sum.

So make sure to decide where to keep a travel fund and nurture it, and then work to keep your vacation’s price tag from busting your budget.

Destinations Where You Get More for Less

According to crowd-sourced travel expense site Budget Your Trip, here are a few places where you can get more bang for your buck. The average prices listed below are for two people for a week on a high-end trip. Your cost may vary, but this should give you an idea of destinations where you can travel luxuriously for less than you might think.

•   Thailand $4,675

•   Mexico $4,091

•   Portugal $3,807

•   Slovakia $3,311

•   Costa Rica $3,098

•   Vietnam $2,077

•   Morocco $1,475

Obviously, if you are traveling domestically, you’ll save money by avoiding air travel. If you can drive to a nearby city or resort, you can reallocate dollars to lodging or entertainment.

Recommended: Where to Find Book Now, Pay Later Vacations

7 Tips for Traveling Posh

If you want to travel in luxury on a budget, here are a few tips to keep in mind.

1. Visit Off-Season

It’s generally true that if you want to visit a popular destination at the same time that everyone else wants to go there, you’re likely to pay more. If your summer travel takes you to a popular beach destination, you’ll pay more than if you visit it in the off season. A week of shopping and cafe hopping in Paris may be pricey in July, but what if you went in March or November? You might be able to afford a junior suite at the hotel you’ve been eyeing vs. a standard room. The more flexible that you can be with your travel dates or destination, the more likely you’re able to travel in luxury at a reduced cost.

One way that families afford to travel is by traveling during the off season or shoulder season, which is the bridge between high season, when everyone wants to go, and the low season, where demand is much diminished.

Book a (Semi-) Private Plane

Some ultra-glamorous experiences have a surprisingly manageable price. An example: With the rising cost of airfare, you may be able to fly a semi-private jet for not much more than flying commercial. While booking a private plane will likely cost more than flying with a traditional airline (especially if you usually travel basic economy), the added cost may be worth the trade off for the extra luxury and convenience. Plus, you get bragging rights to drop the phrase “private jet” into your conversation.

With a semi-private flight, 15 to 30 passengers fly on a predetermined route and schedule. Carriers include Aero, Blade, Surf Air, and Set Jet. Typical flights go from California to Mexican getaway destinations, or New York to vacation islands off the Eastern seaboard.

Prices can be similar to first-class flights: $200 and up for a short hop; into four figures for ones that are longer flights. Bonuses include avoiding the draining experience of going through long security lines at major airports, as these carriers often use smaller private terminals.

You may also be able to use credit card rewards to help defray some of the costs.

Book New Hotels

If you’re wondering how to save money on hotels and travel in luxury for less, look into booking a brand new hotel. Sometimes new hotels will offer discounts when they first open. They might not have all the kinks worked out yet, plus they need to start building a clientele.

Just make sure that you stay flexible with your plans, since hotels don’t always open on time — consider booking your stay with a travel credit card that offers trip insurance if your hotel is still under construction.

Recommended: How Does Credit Card Travel Insurance Work?

Skip the Hotel

Another luxury travel tip is to consider alternative forms of lodging. Rather than stay in a chain hotel, you might be able to find an alternate vacation rental that gives you a more elegant and authentic experience at a similar price point.

For instance, instead of booking into a small and expensive Los Angeles hotel room, you might stay in an Airbnb or VRBO apartment in a cool neighborhood. Having, say, a whole one-bedroom to yourself can make for a stay that’s more posh and memorable.

If you are traveling with pets, you may be able to find a place that is more pet-friendly and allows you to skip hotel pet fees.

Use a Travel Agent

If you prefer elegant travel, consider using a travel agent that specializes in luxury travel. Many travel agents have access to special deals or know of ways to travel in luxury on a budget. It’s possible to come out ahead even after paying the agent their commission.

Redeem Your Rewards

Another way to travel in luxury for less is to consider using your credit card miles or credit card cash back to travel. As one example, many airlines allow you to redeem miles for business class flights, often at very reasonable rates. Or if you don’t have enough miles for a free ticket, you could buy an economy class ticket and use your rewards to bump up to business class.

Either way, when you arrive at your destination relaxed and rested after using your miles to fly business class at a fraction of the cash cost, you’ll definitely feel like you’ve traveled in style.

You may also get other bonuses. Some hotel rewards programs will offer a free night when you book three, free breakfast, and other perks for being a member. Working those freebies and discounts can really pay off.

Also, you may have points from renting a car from the same agency every time. That can give you an affordable set of wheels for the weekend so you and your bff can stay at a posh spa together.

Plan a High-Low Trip

Another way to travel posh is to prioritize what’s important to you and allocate more of your travel budget there. For instance, if you want to go to London for the theater and high tea, you can fly economy and stay in a basic hotel so you can enjoy those luxurious experiences.

Or if it’s your dream to spend a week somewhere near Cancun or Tulum and snorkel every day, make that snorkel time your top priority, budget for it, and then find a small, relaxed hotel versus one of the mega-resorts to save on your lodging bill.

The Takeaway

A luxury trip doesn’t always have to break the bank. Instead, set a budget and decide beforehand what types of lodging, experiences, and activities are most important to you. If you have the money set aside for it, don’t be afraid to splurge on something that is meaningful to you. Often those types of experiences can make memories that stay with you forever. Remember, not every aspect of a trip needs to be five-star in order for you to savor a posh getaway.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

SoFi Travel can take you farther.

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Photo credit: iStock/Astronaut Images

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.

Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

¹See Rewards Details at SoFi.com/card/rewards.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.



Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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For some travelers, shopping for souvenirs is a vacation highlight. Whether along a street of indie boutiques in a big city or at a craft market by the beach, hunting for items that you won’t find back home can be a thrill. What’s more, every time you use or wear your purchases — or spot a friend with something you gifted them — can trigger happy memories of the place you explored.

Unfortunately, it’s all too easy to come home with overpriced trinkets that you quickly tire of or even regret. Being more thoughtful about the types of souvenirs you bring home from your vacation can make your trip more memorable and save you some money. While the “best” souvenirs will depend on your own specific likes, interests, and budget, these tips can help you shop smarter.

How Much Should You Spend on Souvenirs?

Just as with any other part of your finances, you will want to have a budget for your travel souvenirs. Without one, you’re likely to end up spending more than you intend.

But how much to spend on souvenirs? The exact amount depends on what’s important to you.

•   One strategy is to decide beforehand what kind of souvenirs you want to bring back from your trip. Let’s say you’re heading to California and are excited to visit a certain clothing shop you’ve been following on social media. You may want to designate the cost of a typical, say, shirt or pair of pants in your budget.

•   If you’ve already maxed out your budget on plane tickets and a boutique hotel, however, you may want to allocate just $20 or so for a little something to remind you of your trip. (Note: Don’t fool yourself with book now, pay later travel plans; you definitely need to account for those charges you will owe and not overspend when traveling.)

•   Another thing to keep in mind is budgeting for children’s souvenirs. One way that families can afford to travel is by keeping the overall souvenir budget low. Souvenirs may be even more meaningful for kids than parents, so one strategy is to give each child a set budget beforehand if they are old enough to do basic math. That way, instead of having them constantly asking for souvenirs during their trip, they know that they have a specific budget and can plan accordingly.

What Are the Most Popular Souvenirs?

Here is a list of some of the most popular souvenirs that travelers bring home from their vacation. While they tend to be mass-produced (and have no real connection to the location where you buy them), they also make inexpensive gifts for friends and coworkers:

•   Fridge magnets

•   Shot glasses

•   Christmas ornaments

•   Postcards

•   T-shirts or other clothing

•   Photo frames

If you’re looking for ways to stretch your souvenir budget a little further, consider using credit card rewards as a way to help pay for these small gifts.

Meaningful Souvenirs You Won’t Regret

Because there’s such a wide variety among travel souvenirs, you want to make sure to get ones that will be meaningful. While the exact definition of “meaningful” will vary for each person, here are a few items to consider:

•   Postcards: These can be a great option, especially if you write a meaningful memory on it and mail it to yourself. You can frame it when you get home. Another plus: Postcards are super lightweight and easily packed.

•   Handcrafted items: If you’re saving money on hotels by staying somewhere local, you may have extra money to buy, say, a small carved wooden box from Costa Rica.
Artwork: Continuing with local inspiration, another possibility is local artwork. Just make sure you have a reliable way to get it back home.

•   Foreign currency & coins: When you’re traveling internationally, consider keeping a small amount of foreign currency or coins as a memento of your trip.

•   Something practical: Another option to consider is something practical like a locally printed beach towel or tote bag. Not only will it bring back great memories, it’s also something you can regularly use.

•   Photos: Just don’t let them sit in your hard drive: Print them out to give as gifts or display at home. Consider a local photo frame to show off some of your best shots.

Recommended: Where to Keep a Travel Fund

Souvenirs to Avoid

Here are a few souvenirs that you’ll want to avoid:

•   Shells, coral, wildlife, and animals: While seashells and coral might seem like great souvenirs from a beach vacation, it’s not eco-friendly to remove these items from the local habitat. Many locations even have laws about removing such natural wonders from the beach.

And even though you may encounter many adorable stray dogs or cats while traveling, remind yourself of what a big commitment it can be to own a pet (and then potentially travel with a pet).

•   Coffee mugs: Mugs are generally fragile and not locally made. Plus, how many coffee mugs do you really need?

•   Food and alcohol: While eating and drinking locally can be a great way to get into the vacation spirit, bringing home food or drink runs the risk of your souvenirs getting seized by customs.

•   Things you can buy cheaper at home: Do some research before you buy — if you can buy it cheaper online, it’s probably not a great souvenir.

•   Key rings: This is similar to the coffee mug problem. Sure, they’re cute and widely available, but how many do you need?

Tips for Souvenir Shopping

Here’s some advice to help increase the odds that you souvenir-shop for items you’ll treasure for years to come:

•   Research your destination’s signature products before you leave. If you’re heading to Venice, you might want to bring back a small glass pendant from Murano (the nearby “Glass Island”), where you can watch artisans at work; this has been a local tradition for centuries.

•   Set a souvenir budget and decide before you go what you want to bring back as a souvenir. This can help prevent you from overspending and blowing your budget in the moment.

•   Think small, and look for products that are locally and ethically sourced.

•   Another idea is to pick a theme for your souvenirs (inexpensive bracelets or bumper stickers), or use a travel credit card or cash back rewards credit card for your purchases that can reward you for spending.

Recommended: How Does Credit Card Travel Insurance Work?

The Takeaway

For many people, bringing home souvenirs is one of the best parts of a trip. While the perfect souvenir will be different for each person, there are a few things that you can do to get meaningful mementos without breaking the bank. Make a plan and set your budget beforehand, and look for items that are specific to the area, ethically sourced, and perhaps handmade. Chances are, you don’t need another coffee mug, but a locally crafted item might be just the thing to remind you of your travels.

SoFi Travel is a new service offered exclusively to SoFi members. Earn 2x rewards when booking with your SoFi Mastercard or debit card. Then apply those rewards to your next trip when you book through our travel portal. SoFi makes planning a getaway fast, easy, and convenient — perfect for people on the move.

SoFi, your one-stop shop for travel.

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Photo credit: iStock/ArtMarie

¹See Rewards Details at SoFi.com/card/rewards.

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.

Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


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Sometimes, travel involves more paperwork than just your passport and boarding pass. Travel visas are documents that grant you the privilege to travel to a given country. Depending on where you’re coming from, where you’re headed, and why, you may or may not need a visa to get there — but it’s important to find out whether you do as part of your travel planning.

If you need a visa, you’ll have to apply for one with the country you’re planning to visit. What’s more, the application will likely come with a fee.

To help you figure out the wide world of visa requirements, read on, and learn:

•   What the different types of travel visas are

•   Which travel destinations require a visa

•   How to get a visa

•   How long it takes to get a visa

Types of Travel Visas

While there are dozens of visas available for different purposes, they can be broken down into four categories: tourist, immigrant, student, and work.

•   Tourist visas are for travelers visiting a country for a short time. This is most likely what you’re looking for if you’re planning a vacation. Some countries don’t require United States citizens to apply for this type of visa ahead of time, but there may still be restrictions that apply to your travel.

For example, as long as you have a valid U.S. Passport, you can travel to most parts of Europe without applying for a visa beforehand. But you can only stay within the borders of the Schengen Zone for 90 out of 180 consecutive days. The passport stamp you receive on arrival is your visa. (The Schengen Zone encompasses most of the EU countries, some Scandinavian ones, and a few others.)

•   Immigrant visas are for people who are hoping to establish permanent residence in their destination country. Applying for this type of visa can be a lengthy, multi-step process, and getting a visa doesn’t guarantee you’ll be granted citizenship. Still, it’s an important first step toward emigrating to a different country.

•   Student visas are for those studying in a foreign country. To apply for one, you’ll need to prove that you’re enrolled in a legitimate, qualified school in the destination country.

•   Work visas allow their holders to accept employment in a country outside of their citizenship. These visas are usually temporary but can be renewed if the employment continues.

Many visas can be applied for online; these are known as e-visas. Increasingly, many countries are moving toward online visa applications. Exceptions are made for those who can’t apply online due to a disability or other extenuating circumstance.

Recommended: Guide to Saving Money on Hotels

How to Apply for a Travel Visa

If you are planning a trip and realize you need a travel visa, here’s how to spring into action. You’ll want to apply for it with your destination country’s government travel agency. During the application process, you’ll be asked to provide basic identifying information and, if applying online, you may be asked to upload a photo of your passport. The U.S. Department of State is a great resource for up-to-date information on which countries require a visa and how to apply for them.

Seems simple, right? It is, but with a couple important caveats when contemplating how to get a visa.

•   Having a valid passport isn’t always enough to enable travel. Many countries require your passport to have at least six months left before the expiration date at the time of your trip.

•   Applying for a passport in the first place can be a somewhat lengthy process; it may take as long as 11 weeks to get your passport in the mail after you apply. Even expedited processing, which comes with an additional fee, starts at five weeks of lead time. All of which is to say, make sure you have your passport ducks in a row well before you’re getting ready to actually apply for your visa.

Which Countries Require a Visa for U.S. Citizens?

Visa requirements change regularly. A case in point: The United Kingdom, which has long allowed U.S. citizens to travel without a visa, will soon require visitors to go through an online application system.

For the most up-to-date information — and before you lock in flights for a family vacation — check with the U.S. Department of State or your destination country’s travel agency to make sure you have everything set up for success before you head to the airport. At that time, you can also find out how long it will take to receive your visa. For e-visas, it may take just a couple of days.

That said, here are a few popular travel destinations that do require visas for U.S. travelers, along with notes to help you plan.

Country	Application Process	Fee	Duration of Visit
Australia	Apply online with the Australian Department of Home Affairs	AUD20 processing fee	Up to 3 months at a time over 12 months
China	China requires U.S. citizens to apply for a visa ahead of travel. Regular processing takes 4 days, and express service takes 3. You must have at least 6 months of validity on your passport and may need to meet other requirements, such as providing proof of round-trip air travel.	$140	Single, double, and multi-entry visas are available over the course of 6 months, and 12 months or more
India	You can apply for a visa online; processing may take 5 business days or longer	$25-$80, depending on visa duration	Not more than 180 days of any calendar year
Kenya	E-visa required, along with proof of yellow fever vaccination	$51	Visa is valid for three months from the date of issue and may be extended for 90 days
Russia	The U.S. Embassy calls Russia’s visa program “restrictive and complicated,” and it can take up to 20 days to get an exit visa if your visa expires during your visit. Still, it’s possible to apply for a visa ahead of time if you have your heart set on a visit, though the process will take research, time investment, and several steps.	$160	90 days in any 180-day period
United Kingdom	As mentioned above, the U.K. will soon require an Electronic Travel Authorization (ETA) of U.S. travelers. This is different from, but similar to, a visa. Processing will take a few days, but the application only takes a few minutes.	Free	180 days
Vietnam	You must apply for an e-visa online before arrival. Urgent processing is available, but normally processing takes 2 business days.	$17-$65 depending on visa duration	One-month single and multiple entry, and 3-month single and multiple entry visas available

Visa-Free Places for U.S. Passport Holders

To repeat the caveat again: The best way to know for sure if a visa is required is to research your specific destination ahead of time. That said, here are some popular destinations that are currently visa-free for U.S. passport holders. Note: This list is not exhaustive, and time restrictions may still hold.

•   American Samoa

•   Antigua and Barbuda

•   Argentina

•   Aruba

•   Belize

•   Bermuda

•   Brazil

•   Botswana

•   Canada

•   Chile

•   Colombia

•   Costa Rica

•   Curacao

•   Ecuador

•   Europe: Much of Europe allows visa-free entry for up to 90 days

•   Dominican Republic

•   Haiti

•   Honduras

•   Jamaica

•   Japan

•   Mexico

•   Morocco

•   Namibia

•   Nicaragua

•   Panama

•   Peru

•   Puerto Rico

•   Philippines

•   Scandinavia: Sweden, Denmark, Finland, Iceland, and Norway don’t require visas for stays of 90 days or less

•   Singapore

•   Senegal

•   South Africa

•   Thailand

•   Trinidad and Tobago.

Recommended: Where to Keep Your Travel Fund

Tips to Help Your Travel Plans Run Smoothly

Making sure you have the visa you need is only one part of travel planning. While you’re getting organized, here are a few more things to think about:

•   See if your furbaby needs a visa. Those traveling with pets may need to bring certain documentation in order to get their crate past customs. Otherwise, you might be unpleasantly surprised by a lengthy quarantine requirement.

•   Make sure your money is ready to travel, too. For international travel, it’s pretty key to have a travel credit card or cash back rewards credit card that doesn’t charge foreign transaction fees.

•   Get rewarded for air travel. If you usually fly with a specific airline, applying for an airline credit card could help you stack miles — and fly further for less.

•   Find ways to save. No matter how you slice it, international travel is expensive. Fortunately, there are plenty of ways to save on everything from lodging to rental cars — so you don’t eat through your travel fund all in one go.

The Takeaway

U.S. nationals are lucky to have a long list of countries that don’t require a visa for them to visit. However, some countries do (including popular destinations), so it’s important to research requirements. Find out if you need a visa for your trip well before your travel dates so you don’t run into unexpected delays.

SoFi Travel is a new service exclusively for SoFi members. Through a partnership with Expedia, we make it easy to find the lowest rates and book your reservations — for flights, hotel rooms, car rentals, and more — all in one place. Earn 2x rewards when booking with your SoFi Mastercard or debit card. And when you redeem your SoFi rewards for travel, you get a 25% bonus: $100 of reward points are worth $125.

Wherever you’re going, get there with SoFi Travel.

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Photo credit: iStock/minemero

¹See Rewards Details at SoFi.com/card/rewards.

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Eligibility: You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia's website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.

SoFi Member Rewards: All terms applicable to the use of SoFi Member Rewards apply. To learn more please see: https://www.sofi.com/rewards/ and Terms applicable to Member Rewards.

Additional Terms: Changes to your bookings will affect the Rewards balance for the purchase. Any canceled bookings or fraud will cause Rewards to be rescinded. Rewards can be delayed by up to 7 business days after a transaction posts on Members’ SoFi Credit Card ledger. SoFi reserves the right to withhold Rewards points for suspected fraud, misuse, or suspicious activities.
©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender. NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org).

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.



Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This article is not intended to be legal advice. Please consult an attorney for advice.

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When you apply for a credit card, the credit card issuer will ask you for your annual income. They want to be sure you have the means to pay your bills on time. Issuers may ask you to calculate your income in specific ways. For example, they may ask for net income or gross income when filling out an application.

If you’re single and work a salaried job, this may be fairly easy to figure out. However, for many people, income can be complicated and comes from a wide variety of sources. It also might be shared with a spouse.

Here’s a look at what you need to know about what annual income means on a credit card application, and how to know what types of income to include if you have multiple sources.

What Counts as Income?

For the most part, any money that is paid to you directly and that you have reasonable access to counts as income. This includes money you received from an employer or, if you’re self-employed, from clients. It can also come from other sources, such as investments or retirement benefits. Note that income tends to vary by age, and it is not the same as net worth.

The following are some examples of types of income credit card issuers may consider:

•   Salary and wages

•   Commissions

•   Tips

•   Bonuses

•   Income from a spouse or partner

•   Pension benefits

•   Social Security benefits

•   Public assistance

•   Alimony and child support payments that you receive

•   Interest

•   Dividends

You may not have to include alimony or child support payments as income on a credit card application. The reason? Credit card issuers understand that those payments may already be earmarked for the support of an individual.

Recommended: What’s the Difference Between Income and Net Worth?

What Is the Difference Between Gross and Net Income?

When it comes to calculating income, it’s helpful to know what gross income and net income mean.

Your gross income is the total amount of money you make before any other deductions are taken from it. Deductions may include things like taxes, 401(k) contributions, and health insurance premiums. Your gross income represents income from all sources.

Your net income, on the other hand, represents how much money you have once all deductions have been made. For individuals, this is their “take-home” pay, which can be considerably smaller than gross income. Credit card issuers may ask for net income as it represents money that you can access and isn’t earmarked for other purposes.

Tools such as spending apps can help you organize and manage the money you earn.

How to Calculate Your Gross Annual Income

Calculating gross income is relatively simple. You’ll need to add up income from all sources. For tax purposes, this will include wages, tips, bonuses, commission, capital gains, dividends, alimony, pension payments, interest, and rental income. You can find your adjusted gross income by subtracting above-the-line tax deductions, such as contributions to 401(k)s and traditional IRAs.

Credit card issuers can look at other income that’s not necessarily taxed, such as life insurance payouts of gifts. So be sure to include that in your calculation for a credit card application.

How to Calculate Your Annual Net Income

Calculate your net income by taking your gross income and subtracting deductions, including taxes, such as income taxes, capital gains tax, and employment taxes. You’ll also need to subtract contributions to retirement accounts and insurance premium payments.

If you receive a paycheck, there may be a line that spells out net income.

Recommended: How to Calculate Your Net Worth and Wealth

What Types of Income Don’t Count on a Credit Card Application?

There are some types of income that you can’t include on a credit card application. Generally, these are forms of income that you don’t have access to. For example, if your wages are being garnished to pay off a debt, you cannot include that amount of the garnished wages as income, as that money belongs to your creditor. Similarly, you can’t include money that goes toward alimony or child support payments or that you need to use to pay off tax debt.

What Happens If I Lie About My Income on a Credit Card Application?

It may be tempting to fudge your income on a credit card application. After all, tacking on a few thousands dollars to your income may be the difference between being approved for a credit card and being rejected. That said, you should never lie about your income on a credit card application. If you do, you’re committing fraud, and it’s a federal offense. So while it may not seem like a big deal to give your income a little boost, if you’re caught, you could face up to 30 years in prison and a fine of up to $1 million.

What Other Information Does a Credit Card Application Require?

In addition to income, you can expect a credit card issuer to ask for the following information on a credit card application:

•   Legal name and a valid U.S. address

•   Housing costs, which help the issuer determine how much debt you can afford to pay back

•   Your Social Security or Individuals Taxpayer Identification Number, which is needed for the credit card issuer to make a hard pull on your credit report to check your credit score

Issuers consider your credit score when they determine whether to extend credit to you. A high credit score shows lenders that you have a history of responsibly managing debts and paying your bills on time. Lower credit scores indicate that a borrower is less likely to make on-time payments, and lenders may be less likely to approve them for a card.

The best way to maintain a healthy credit score is to always pay your bills on time. You can receive a free credit report each year from the three major credit reporting bureaus: Experian, TransUnion, and Equifax. Check your credit report regularly to ensure there are no mistakes that could be dragging down your score. Report mistakes to the credit bureaus immediately.

The Takeaway

Credit card companies look at your annual income to determine how much credit you can afford and to assess their risk in extending you credit. Some may specify how they wish you to calculate your annual income, frequently asking for gross or net income. Gross income is the total amount of money you make before any other deductions are taken from it. Net income represents how much money you have after deductions have been made.

To calculate either figure, you’ll need to gather information about all your income sources. A money tracking app can help you keep tabs on your finances. The SoFi app connects all of your accounts in one dashboard so you can get a bird-eye view of your finances, track income and spending, and monitor your credit score.

Stay up to date on your finances by seeing exactly how your money comes and goes.

FAQ

What does it Mean when a credit card application asks for annual income?

Credit card companies may specify how they want you to report your annual income. They may ask for gross income, which includes all income before taxes and deductions, or net income, which is income after taxes and deductions have been subtracted.

What counts as annual income?

Annual income includes all money that you can say you reasonably have access to. This typically includes salary and wages, commissions, tips, bonuses, income from a spouse or partner, pension benefits, Social Security benefits, public assistance, alimony and child support payments, interest, and dividends.

What doesn’t count as annual income?

You cannot include income that you don’t have access to, such as garnished wages, alimony and child support payments you’re required to make, or money that must be used to pay off tax debt.

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Photo credit: iStock/max-kegfire

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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