airbnb travel credit balance

How To Easily Check Your Airbnb Travel Credit

• Last updated May 11, 2024
• Difficulty Beginner

• Category Travel

If you're an avid traveler, you've most likely heard of Airbnb and the many perks it offers. One of these perks is the travel credit feature, which allows you to earn credit towards your future stays. However, just like any other reward program, it's important to stay on top of your credit balance. In this guide, we'll show you just how easy it is to check your Airbnb travel credit and ensure you never miss out on any savings.

What You'll Learn

Introduction to airbnb travel credit, steps to check your available airbnb travel credit, troubleshooting common issues when checking airbnb travel credit, tips for maximizing and utilizing your airbnb travel credit.

Airbnb offers a variety of travel credits to its users, which can be a great way to save money on your next trip. Travel credits can be earned through various promotions, referrals, and Airbnb experiences. In this article, we will discuss what Airbnb travel credits are, how they work, and how you can check your travel credit balance.

Airbnb travel credits are a form of virtual currency that can be used to cover the cost of accommodations and experiences booked through the Airbnb platform. These credits are stored in your Airbnb account and can be applied towards the total cost of your bookings, reducing the amount you need to pay out of pocket.

When you receive travel credits, they are automatically added to your Airbnb account. These credits will be used to cover the cost of any eligible bookings you make on the platform. Travel credits can only be used towards the base price of a booking and cannot be applied towards fees or taxes.

How to Check Your Airbnb Travel Credit Balance

To check your Airbnb travel credit balance, follow these simple steps:

• Sign in to your Airbnb account: Visit the Airbnb website or open the Airbnb app on your mobile device, and sign in using your credentials.
• Go to your account page: Once you are signed in, navigate to your account page by clicking on your profile picture or the dropdown menu located in the top right corner of the page.
• Access your travel credits: On your account page, you will see a section titled "Travel Credit." Click on this section to access your travel credit balance.
• View your travel credit balance: In the travel credit section, you will see your current travel credit balance displayed. This balance will show you the total amount of travel credits that you have available to use towards future bookings.
• Get more details: If you want to view a detailed breakdown of your travel credits, you can click on "Travel Credit Details." This will provide you with more information about how your travel credits were earned, when they expire, and any associated terms and conditions.

Tips for Using Airbnb Travel Credits Wisely

• Keep track of expiration dates: Travel credits have an expiration date, so it's important to be aware of when they will expire. Make sure to use your credits before they expire to avoid losing them.
• Combine travel credits with other promotions: Airbnb often runs promotions and discounts, so try to combine your travel credits with these promotions to maximize your savings.
• Refer friends to earn more travel credits: Airbnb has a referral program that allows you to earn travel credits by referring friends to sign up and make their first booking. Take advantage of this program to accumulate more travel credits.
• Use travel credits for more expensive bookings: Since travel credits cannot be applied towards fees or taxes, it's best to use them for larger bookings. This way, you can maximize the amount of the booking that is covered by your travel credits.

Airbnb travel credits are a valuable resource that can help you save money on your next trip. By following these simple steps, you can easily check your travel credit balance and make the most out of your credits. Remember to keep track of expiration dates and combine your travel credits with other promotions to maximize your savings. Happy travels!

Exploring Greece: A Complete Guide to Traveling with a Cyprus Visa

You may want to see also

If you've received travel credit from Airbnb and want to check how much is available for your next booking, you can easily do so by following a few simple steps. Here's a step-by-step guide on how to check your available Airbnb travel credit:

• Open your preferred web browser and go to the Airbnb website. If you haven't already, sign in to your Airbnb account using your email address and password.
• Once you're signed in, click on your profile picture or the silhouette icon in the top right corner of the screen. This will open a drop-down menu.
• From the drop-down menu, select "Account" to access your account settings.
• In the account settings page, you'll find a sidebar on the left side of the screen. Scroll down until you see the "Payments & payouts" section. Click on it to expand the section.
• Within the "Payments & payouts" section, you'll see a menu on the left. Click on "Travel credit" to view your available travel credit balance.
• On the travel credit page, you'll find the total amount of travel credit you have available. This includes any promotional credits, referral credits, or gift cards that you may have received.
• If you want to see a detailed breakdown of your travel credit, click on the "View credit details" button. This will display a summary of your credits, including the source of each credit and the expiration date, if applicable.
• To use your travel credit for a booking, go back to the Airbnb homepage and start searching for accommodations. When you find a listing you want to book, proceed to the booking page.
• On the booking page, you'll see a box titled "Apply coupon or travel credit." Here, you can enter the amount of credit you want to apply to your booking. You can choose to use your full available credit or only a portion of it.
• After entering the desired amount, click on the "Apply" button. The total price of your booking will be adjusted based on the credit applied, and you can proceed to complete the booking process.

By following these steps, you can easily check how much Airbnb travel credit you have available and use it towards your next booking. It's a convenient way to save money on your accommodations and enjoy a more affordable travel experience.

The Ultimate Guide to Checking Your Southwest Travel Funds

Airbnb offers travel credits to its users as a form of compensation or promotions. These credits can be used towards the cost of bookings on the platform, helping travelers save some money. However, there may be instances where users face difficulties in checking their Airbnb travel credit. In this article, we will troubleshoot common issues that users encounter and provide step-by-step instructions to resolve them.

• Check the Airbnb app or website: The first step is to log in to your Airbnb account and check the app or website for your travel credit balance. On the app, navigate to the "Profile" tab and look for the "Travel Credit" option. On the website, click on your profile picture and select "Travel Credit" from the dropdown menu. Here, you should be able to see the amount of travel credits you have available.
• Ensure the travel credits are still valid: Travel credits on Airbnb usually come with an expiration date. If you're unable to see your travel credit balance, it's possible that the credits may have expired. To check the validity of your credits, navigate to the "Travel Credit" section mentioned above and look for any expiration dates associated with your travel credits. If they have expired, unfortunately, they cannot be used anymore.
• Check for any restrictions on the use of travel credits: In some cases, travel credits may come with certain restrictions or limitations. For example, they may only be applicable to certain types of bookings or have a minimum booking amount requirement. To ensure you can use your travel credits, review any terms and conditions that may be associated with them. These can typically be found in the emails or notifications that initially informed you about the travel credits.
• Verify if the travel credits were actually applied: If you have a valid travel credit balance but it's not being reflected during the booking process, it's important to verify if the credits were indeed applied. During the checkout process, there is usually a section that displays the payment breakdown, including any discounts applied. Review this section carefully to confirm if your travel credits have been deducted from the total amount.
• Contact Airbnb customer support: If you've tried the above steps and are still unable to check or use your travel credits, it's recommended to reach out to Airbnb's customer support team for assistance. They have access to your account details and can help resolve any issues or inconsistencies you may be facing. Contact options can be found on the Airbnb website or app, usually under the "Help" or "Support" section.

In conclusion, checking Airbnb travel credits can sometimes be a bit tricky, but by following the troubleshooting steps outlined in this article, you should be able to resolve common issues. Remember to always check for expiration dates, restrictions, and ensure that the credits have been applied correctly during the booking process. If all else fails, don't hesitate to reach out to Airbnb's customer support team for further assistance.

How Traveling Can Transform Your Taste Buds

Airbnb has become a popular platform for travelers to find unique and affordable accommodations all over the world. One of the many perks of using Airbnb is the opportunity to earn travel credits that can be used for future bookings. But how do you check your Airbnb travel credit and ensure that you are making the most of it? In this article, we will provide you with some tips and tricks for maximizing and utilizing your Airbnb travel credit effectively.

Check your credit balance regularly

Before making any booking, it is important to check your Airbnb travel credit balance to know how much you have available. To do this, simply log into your Airbnb account and go to your profile. Under the "payments & payouts" section, you will find information about your travel credit balance. This will help you plan your trips accordingly and make the most of your credits.

Use your travel credit before it expires

Airbnb travel credits usually come with an expiration date, so it is important to use them before they expire. Keep track of the validity period of your credits and make sure to book your accommodations within that time frame. Using your credits before they expire will prevent any loss of value and allow you to enjoy the benefits they offer.

Combine your travel credits

If you have multiple travel credits from different sources, you can often combine them to increase your booking value. For example, if you have travel credits from both Airbnb referrals and Airbnb gift cards, you can usually use them together to pay for a single booking. Before making a reservation, check if Airbnb allows you to combine different types of travel credits and take advantage of this opportunity to maximize your savings.

Book in advance

Airbnb travel credits can be used for any future booking, so it is advisable to plan your trips in advance. By booking your accommodations in advance, you can secure the best deals and availability. Additionally, some hosts offer discounts for guests who book early, which can further enhance your savings. Utilizing your travel credits for early bookings can help you get the best value for your money.

Consider longer stays

When using your Airbnb travel credits, it is worth considering longer stays. Many hosts offer discounted rates for guests who book for a week or more. By staying for a longer duration, you can save more money and also have more time to explore your destination. Look for hosts who offer weekly or monthly discounts and take advantage of these opportunities to stretch your travel credits.

Share your referral code

Airbnb allows you to earn travel credits by referring friends and family to the platform. By sharing your referral code with others, you can earn travel credits for every person who signs up and completes a booking. This is a great way to increase your travel credit balance without spending a dime. So, spread the word about Airbnb and encourage people to sign up using your referral code.

By following these tips, you can maximize and effectively utilize your Airbnb travel credits. Always check your credit balance, use them before they expire, combine them if possible, book in advance, consider longer stays, and share your referral code to earn more credits. Enjoy your travels and take advantage of the benefits that Airbnb has to offer. Happy booking!

Tips for Traveling to China: What You Need to Know

Frequently asked questions.

• Olivia Jacobs Author

• Duke Trotter Author Editor Reviewer Traveller

It is awesome. Thank you for your feedback!

We are sorry. Plesae let us know what went wrong?

We will update our content. Thank you for your feedback!

Leave a comment

Travel photos, related posts.

A Step-by-Step Guide to Obtaining a Travel Visa for Brazil

• May 03, 2024

The Ultimate Guide on How to Travel from Boston Airport to Bradley Airport

• May 16, 2024

The Majestic Pacific: Journeying Across the Vast Ocean from California to China

• May 09, 2024

Understanding Traveler's Visas: Everything You Need to Know

• May 07, 2024

Exploring the Cost of Supreme Court Justices' Travels on Taxpayers

• May 12, 2024

Essential Tips for Traveling with Prescriptions in China

Athlete Travel Support Credit Terms and Conditions

IN ADDITION TO THESE ATHLETE TRAVEL SUPPORT CREDIT TERMS AND CONDITIONS (“ATHLETE TRAVEL SUPPORT CREDIT TERMS”), THE AIRBNB TERMS OF SERVICE, PAYMENT TERMS OF SERVICE, AND PRIVACY POLICY APPLY (COLLECTIVELY THE “AIRBNB TERMS”). CAPITALIZED TERMS NOT DEFINED IN THESE ATHLETE TRAVEL SUPPORT PARTNERSHIP CREDIT TERMS HAVE THE MEANINGS GIVEN IN THE AIRBNB TERMS.

“Athlete Travel Support Credit” is promotional credit awarded pursuant to the Athlete Travel Grant . Athlete Travel Support Credit: (i) can be applied to stays bookings on the Airbnb platform in association with training, medical, or competition-related travel; (ii) expires 12 months from the date of issuance; (iii) is non-refundable and non-transferable, and may not be used to book on behalf of third-parties; (iv) cannot be applied to previous bookings; and (v) is not cash, currency, a stored value product or a gift card product. You may not purchase or sell Athlete Travel Support Credit and Airbnb does not sell Athlete Travel Support Credit. Airbnb reserves the right to cancel any bookings that violate these Airbnb Terms, and void any associated Athlete Travel Support Credit.

How it works

Athlete Travel Support Credit may be applied during checkout and will reduce the cost of that booking by the applied amount. You are not required to apply Athlete Travel Support Credit to your next booking and may elect to apply it to a later booking. If less than the total available balance of your Athlete Travel Support Credit is applied to a booking, the balance will remain in your Airbnb account until used or expiration, whichever occurs first.

If you apply Athlete Travel Support Credit to a booking and the booking is cancelled, you will be refunded based on the Host’s cancellation policy and/or other applicable Airbnb policies. Applicable refund amounts related to (i) Athlete Travel Support Credit you used for the cancelled booking will be refunded for future use, and (ii) the amount paid with your Payment Method (e.g., your credit or debit card) will be refunded to that Payment Method.

If for any reason you believe that there is a discrepancy regarding your Athlete Travel Support Credit, please contact us. Airbnb may require you to submit additional information in order to make a determination regarding your Athlete Travel Support Credit.

Miscellaneous

You understand and agree that you are solely responsible for determining for your jurisdiction (i) the applicable tax reporting requirements, and (ii) the taxes that should be paid in connection with Athlete Travel Support Credit. Where applicable, Airbnb may be required to account for VAT on any services for which Athlete Travel Support Credit are redeemed. In no event will Airbnb be liable for any special, incidental, punitive, exemplary or consequential damages of any kind even if we have been informed in advance of the possibility of such damages. In no event will Airbnb’s aggregate liability to you in connection with Athlete Travel Support Credit exceed the amount of the Athlete Travel Support Credit.

Except where prohibited by law, Airbnb reserves the right to refuse, void, cancel, reject or hold for review any Athlete Travel Support Credit mistakenly applied in an incorrect denomination or applied or procured, directly or indirectly, in connection with fraudulent action, fraudulent claims, compensation abuse or in connection with any violation of these Athlete Travel Support Credit Terms or the Airbnb Terms. Airbnb also reserves the right to remedy, including disqualifying you from participating in the program, if it suspects or determines that you have committed fraud or otherwise violated the Athlete Travel Support Credit Terms or Airbnb Terms.

We can update these terms at any time without prior notice. If we modify these terms, we will post the modification on the Airbnb.com website, applications, or services, which are effective upon posting. Use of any Athlete Travel Support Credit after any modification shall constitute consent to such modification.

The scope, variety, and type of services and products that you may obtain by redeeming Athlete Travel Support Credit can change at any time.

A guide to the best credit cards for Airbnb stays

Home rentals are a popular alternative to hotels, and you may be considering an Airbnb for your next trip. While the topic of the best credit cards for hotel stays gets a lot of attention, it's a different matter for Airbnb stays. That's especially true when you consider that hotel chains have their own credit cards, yet Airbnb does not.

If you've decided to go the Airbnb route, which travel rewards credit card should you use to make the purchase? Let's take a closer look at your best options.

What is Airbnb?

If you're unfamiliar with Airbnb , the site offers a wide variety of lodging options when traveling. In many cases, Airbnb provides privately owned rooms, apartments, houses, boathouses and hotel rooms. They're available for both short- and long-term stays.

While prices are sometimes more affordable than equivalent hotel rooms, it should be noted that Airbnb is not exactly a hotel on a budget. There are tradeoffs: things such as room service, daily housekeeping and other full-service amenities aren't usually found. However, if you are searching for unique accommodations — or want the feeling of being in a home while away from home — Airbnb could be a good option. Groups and those traveling with others also tend to prefer Airbnb, since it's easy to reserve multi-bedroom lodging.

Beyond stays, Airbnb offers experiences. These can include tours, outdoor activities like whale watching, cooking classes or even a great photographer to snap photos for your Instagram during your next vacation.

Airbnb doesn't have a loyalty program, so the best way to make the most of these types of purchases is by using the right credit card.

Related reading: How to find the best Airbnb

Which credit card is best for Airbnb stays and experiences?

American express green card, chase sapphire reserve, chase sapphire preferred card.

• Chase Ink Business Preferred Credit Card

Capital One Venture Rewards Credit Card

Capital one venture x rewards credit card.

You may see some familiar names among the cards listed above. That's because several of the best credit cards for Airbnb are on our list of the best credit cards for travel .

The information for the American Express Green Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Earning rates on the top cards for Airbnb

A closer look at the best credit cards for airbnb.

Airbnb typically codes as "travel" on your credit card statement. This means it will trigger any bonus points or annual credits offered in the travel category . Here's a deep dive into the best cards for Airbnb.

Annual fee: $150 (see rates and fees)

Welcome offer: Earn 40,000 Membership Rewards points after spending $3,000 on purchases in the first six months of card membership

Earning rates: You'll get 3 Membership Rewards points per dollar on restaurant purchases , 3 points per dollar on transit including ride shares, subway swipes, tolls — and most importantly for Airbnb — plus 3 points per dollar on the broad category of travel, which includes things from flights, car rentals, hotels and home shares (yes, including Airbnb). You'll earn 1 point per dollar on all other purchases.

Why we like it: Other cards, including The Platinum Card® from American Express and American Express® Gold Card , have more limited travel categories that don't go beyond the scope of airfare and hotels . While the Platinum card has a higher bonus earning on airfare (5 points per dollar), it only applies to airfare booked directly with airlines or through the American Express Travel Portal (and the bonus earning potential is limited to the first $500,000 of these purchases per calendar year). In the Platinum's case, you'll also get 5 points per dollar spent on prepaid hotels booked through Amex Travel.

The Amex Green is the most flexible of the bunch when it comes to earning 3 Membership Rewards points for every dollar spent on Airbnb. Those 3 points equate to a 6% return based on TPG valuations . If you're flying to get to your Airbnb, you can also take advantage of an up to $189 Clear Plus annual statement credit and a $100 LoungeBuddy annual statement credit . Enrollment required for select benefits.

To learn more, read our full review of the Amex Green card .

Related: The best cards for airport lounge access

Annual fee: $550

Sign-up bonus: Earn 75,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.

Earning rates: Besides getting a $300 annual travel credit (that can be used toward Airbnb), you'll get 3 Ultimate Rewards points per dollar on travel — after using the $300 credit — and 3 points per dollar on dining at restaurants worldwide. Other bonus categories include 10 points per dollar on hotels and car rentals booked through the Chase Ultimate Rewards portal and 5 points per dollar on flights booked in the portal. You can also earn 10 points per dollar on Chase Dining purchases and 1 point per dollar on everything else.

Why we like it: First and foremost, you get to use the card's $300 travel credit toward a broad range of travel purchases , including Airbnb. Earning 3 points per dollar on Airbnb makes this card is useful for earning maximum Ultimate Rewards on your purchases after exhausting your $300 travel credit. Those 3 points equate to a 6% return based on TPG valuations — the same as the Amex Green . Additionally, the 75,000 Ultimate Rewards points sign-up bonus is worth $1,125 based on TPG valuations.

To learn more, read our full review of the Sapphire Reserve .

Apply here: Chase Sapphire Reserve

Related: 4 things to do once you get your Chase Sapphire Reserve

Annual fee: $95

Earning rates: You'll earn 2 Ultimate Rewards points per dollar on travel — which doesn't apply to the card's $50 hotel credit , though you must use this in the Chase travel portal , so Airbnb bookings aren't eligible — and also earn 5 points per dollar on travel purchases in the Chase travel portal. You can also earn 3 points per dollar on dining , select streaming services and online grocery (excluding Target, Walmart and wholesale clubs). Through March 2025, you can also earn 5 points per dollar on Lyft rides . Cardmembers earn 1 point per dollar on everything else.

Why we like it: Firstly, the card has a low annual fee while still possessing strong earning categories. This includes a broad range of travel purchases, such as bonus points on bookings made directly with Chase or Lyft rides, as well as 2 points per dollar with Airbnb. Those 2 points provide a 4% return based on TPG valuations . Additionally, the 75,000 Ultimate Rewards points sign-up bonus is worth $1,538 based on TPG valuations.

To learn more, read our full review of the Sapphire Preferred .

Apply here: Chase Sapphire Preferred

Related: Why the Chase Sapphire Preferred is more than just a starter card

Ink Business Preferred Credit Card

Sign-up bonus: Earn 100,000 Ultimate Rewards points after you spend $8,000 on purchases in the first three months after account opening.

Earning rates: You'll earn 3 Ultimate Rewards points per dollar on the first $150,000 of combined spend on the card each anniversary year in the following categories: shipping purchases; internet, cable and phone services; advertising with social media and search engines and — most importantly for this discussion — on travel.

Why we like it: This is another Chase card that earns a fantastic 3 Ultimate Rewards points on travel, including Airbnb stays. Although the huge 100,000 Ultimate Rewards sign-up bonus is a great perk, it's important to note the card's hefty initial spending requirement. While this isn't a consumer card, getting approved for a business card may be easier than you think.

To learn more, read our full review of the Ink Business Preferred .

Apply here: Ink Business Preferred

Related: The best business credit cards

Annual fee: $95 (see rates and fees )

Sign-up bonus: Earn 75,000 bonus miles after you spend $4,000 on purchases within the first three months of account opening.

Earning rates: You'll earn 2 Capital One miles per dollar spent on almost everything with no annual cap, which means you're getting 3.7 cents' value (factoring in TPG's latest valuation ) every dollar in purchases.

Why we like it: The Venture card is an excellent choice for those who value a straightforward earning rate on all purchases, including vacation rental bookings and anything else you buy. In exchange for a $95 annual fee, this Capital One credit card earns you a flat 2 miles per dollar spent on every purchase you make, and you can even redeem your rewards to cover your Airbnb stay at a rate of 1 cent per mile. If you decide not to use your rewards for Airbnb bookings, you can use them to cover any travel purchases made with your card in the last 90 days or transfer them to its 15+ airline and hotel transfer partners .

Plus, the card currently offers a 75,000-mile bonus offer worth $1,388, according to TPG valuations . Add in the fact that Capital One has made some exciting additions to its program, and it's no surprise that this card is still one of our favorites here at TPG.

To learn more, read our full review of the Venture .

Learn more: Capital One Venture Rewards

Related: Tips and tricks to get maximum value from your Capital One miles

Annual fee: $395 (see rates and fees )

Earning rates: You'll earn 2 Capital One miles per dollar spent on almost everything with no annual cap, which means you're getting 3.7 cents' value (factoring in TPG's latest valuation ) for every dollar in purchases. You can earn at higher rates when booking in the Capital One Travel portal , including 10 miles per dollar on hotel and rental car bookings and 5 miles per dollar on flights.

Why we like it: The Venture X card offers a straightforward 2 miles per dollar spent on all purchases not booked in the travel portal, which includes a pack of gum or your next Airbnb booking. You can also redeem your rewards to cover your Airbnb stay at a rate of 1 cent per mile. If you decide not to use your rewards for Airbnb bookings, you can use them to cover any travel purchases made with your card in the last 90 days or transfer them to its 18 airline and hotel transfer partners . The card also provides numerous perks, such as a $300 annual travel credit for Capital One Travel bookings, reimbursement for your Global Entry or TSA PreCheck fee and rental car elite status.

To learn more, read our full review of the Venture X .

Learn more: Capital One Venture X

Related: 6 things to do when you get the Capital One Venture X

Annual fee: $0, but you must have an Amazon Prime membership

Sign-up bonus: $100 Amazon gift card immediately upon approval.

Earning rates: You'll get 5% back on Amazon and Whole Foods purchases and 2% back at restaurants , gas stations and local transit and commuting (including rideshare). You will earn 1% back on other purchases.

Why we like it: How does the Amazon card make our list of best cards for Airbnb? Two words: Gift cards. Airbnb gift cards are available on Amazon, and you can easily get 3% back this way. First, use this card to buy Airbnb gift cards; then, use those cards to pay for your upcoming stay. You can redeem your 3% back on cash back, gift cards or travel rewards, and it's all worth the same. Note that Airbnb restricts, in fine print, the use of gift cards for long-term stays (28+ days).

To learn more, read our full review of the Amazon Prime Visa .

Apply here: Prime Visa

Related: Best credit cards for Amazon purchases

Maximizing your next Airbnb stay

One of the most important factors in making the most of your everyday spending is choosing the best travel rewards credit card for every purchase. This isn't always an easy task, as some cards earn valuable transferable points while others give bonus points for certain categories of purchases . Deciding what is more important is a personal decision.

For any Airbnb stay, though, see if you can double dip. For instance, you can easily earn bonus points or miles with programs like British Airways Executive Club, Delta SkyMiles or Qantas Frequent Flyer by clicking through their Airbnb shopping portals , regardless of what credit card you use to book.

These cards are all great options for Airbnb, but there are many others out there. For instance, if your local grocery store also sells Airbnb gift cards, you can use a card that earns bonuses at grocery stores to maximize your purchase. The same applies to office supply stores .

Since several credit cards offer annual travel credits , consider these as well. Using these credits can be a way to offset your travel costs when staying at Airbnb, since you can't transfer your points to Airbnb for award bookings.

Bottom line

Airbnb is a great lodging option for trips, as the platform represents a nice alternative to traditional hotels. I've personally stayed in dozens of Airbnbs throughout my travels and usually favor it over a chain hotel.

In addition to the unique properties you can book, there are also some solid credit card options that allow you to earn a decent haul of points or cash back. Just remember to review each listing's cancellation policy and reviews carefully before booking.

See also: 15 tips that will help you score the perfect Airbnb every time

Additional reporting by Ryan Wilcox, Juan Ruiz and Ryan Smith.

Discover the Festival of Sustainability’s community collage!

Discover the community "green" collage, community center, resource center, help center.

• Mark Topic as New
• Mark Topic as Read
• Float this Topic for Current User
• Printer Friendly Page

Where do I find my travel credit balance and their expiration dates?

• Mark as New
• Who Liked this post
• Report Inappropriate Content
• All forum topics
• Previous Topic

• « Previous
• Next »

More from Help

blocked days on the calendar being activated without my doin...

personal income tax , withholding tax in Thailand

Solution to payout methods

How do we add the GST charge in BC, Canada to our guests?

Cancelled due to "doesn’t appear to be legitimate"

Investing in Airbnb through Micro ventures

Explore topics for hosts like you, ask about your listing, advice on your space, support with your bookings, help with your business, community cafe, host circle, explore resource center articles.

The Messages tab is your new inbox

Earnings dashboard: A better look at your bottom line

Know more about your guests with profile upgrades

• Credit Cards
• All Credit Cards
• Find the Credit Card for You
• Best Credit Cards
• Best Rewards Credit Cards
• Best Travel Credit Cards
• Best 0% APR Credit Cards
• Best Balance Transfer Credit Cards
• Best Cash Back Credit Cards
• Best Credit Card Sign-Up Bonuses
• Best Credit Cards to Build Credit
• Best Credit Cards for Online Shopping
• Find the Best Personal Loan for You
• Best Personal Loans
• Best Debt Consolidation Loans
• Best Loans to Refinance Credit Card Debt
• Best Loans with Fast Funding
• Best Small Personal Loans
• Best Large Personal Loans
• Best Personal Loans to Apply Online
• Best Student Loan Refinance
• Best Car Loans
• All Banking
• Find the Savings Account for You
• Best High Yield Savings Accounts
• Best Big Bank Savings Accounts
• Best Big Bank Checking Accounts
• Best No Fee Checking Accounts
• No Overdraft Fee Checking Accounts
• Best Checking Account Bonuses
• Best Money Market Accounts
• Best Credit Unions
• All Mortgages
• Best Mortgages
• Best Mortgages for Small Down Payment
• Best Mortgages for No Down Payment
• Best Mortgages for Average Credit Score
• Best Mortgages No Origination Fee
• Adjustable Rate Mortgages
• Affording a Mortgage
• All Insurance
• Best Life Insurance
• Best Life Insurance for Seniors
• Best Homeowners Insurance
• Best Renters Insurance
• Best Car Insurance
• Best Pet Insurance
• Best Boat Insurance
• Best Motorcycle Insurance
• Best Travel Insurance
• Event Ticket Insurance
• Small Business
• All Small Business
• Best Small Business Savings Accounts
• Best Small Business Checking Accounts
• Best Credit Cards for Small Business
• Best Small Business Loans
• Best Tax Software for Small Business
• Personal Finance
• All Personal Finance
• Best Budgeting Apps
• Best Expense Tracker Apps
• Best Money Transfer Apps
• Best Resale Apps and Sites
• Buy Now Pay Later (BNPL) Apps
• Best Debt Relief
• Credit Monitoring
• All Credit Monitoring
• Best Credit Monitoring Services
• Best Identity Theft Protection
• How to Boost Your Credit Score
• Best Credit Repair Companies
• Filing For Free
• Best Tax Software
• Best Tax Software for Small Businesses
• Tax Refunds
• Tax Brackets
• Taxes By State
• Tax Payment Plans
• Help for Low Credit Scores
• All Help for Low Credit Scores
• Best Credit Cards for Bad Credit
• Best Personal Loans for Bad Credit
• Best Debt Consolidation Loans for Bad Credit
• Personal Loans if You Don't Have Credit
• Best Credit Cards for Building Credit
• Personal Loans for 580 Credit Score Lower
• Personal Loans for 670 Credit Score or Lower
• Best Mortgages for Bad Credit
• Best Hardship Loans
• All Investing
• Best IRA Accounts
• Best Roth IRA Accounts
• Best Investing Apps
• Best Free Stock Trading Platforms
• Best Robo-Advisors
• Index Funds
• Mutual Funds
• Home & Kitchen
• Gift Guides
• Deals & Sales
• Sign up for the CNBC Select Newsletter
• Subscribe to CNBC PRO
• Privacy Policy
• Your Privacy Choices
• Terms Of Service
• CNBC Sitemap

Follow Select

Our top picks of timely offers from our partners

How to use your credit card points to book vacation rentals like Airbnb

Cnbc select offers four tips to redeeming your credit card rewards for a home away from home..

With the coronavirus pandemic continuing to put many Americans' vacations and hotel stays on hold, road trips to a nearby Airbnb are becoming more popular .

Vacation rental marketplaces, like Airbnb, have gained traction as a home away from home for large group sizes, and even more so now as a covid-friendly option.

Airbnbs offer more room to social distance, and guests tend to have their own kitchen and dining areas. In light of the pandemic, Airbnb has also enhanced its cleaning protocols between stays and asks that hosts provide a no-contact check-in whenever possible.

If you're looking for some time off this upcoming holiday season, a vacation rental may be the best choice. And the good news is that all those credit card rewards you've been stockpiling in quarantine this year can help cover the cost of your next stay.

Before diving in, you'll first need to find out how your credit card issuer codes Airbnb transactions. Purchases that fall under the "travel' category most often include timeshares and hotels. But there are also categories like homeshares, homestays and rentals.

Both Chase and Wells Fargo classify Airbnb as travel under the homeshare category, but not all card issuers will.

Here's what falls under the travel category for five major issuers:

• American Express: Hotel stays, timeshare rentals and vacation rentals (American Express® Green Card only); excludes purchases of timeshare properties
• Bank of America: Hotels, motels, resorts, timeshares
• Capital One: Hotel and car rentals booked through Capital One Travel
• Chase: Hotels, motels, timeshares
• Citi: Hotels, timeshares

Learn more: How credit card issuers classify purchases for bonus rewards

Now that you know where you stand, let's take a look at the many ways you can apply your points and miles to cover vacation rentals and Airbnbs.

1. Use your travel credit card wisely

If you have a premium travel rewards credit cards, there's a good likelihood that you can redeem your points on vacation rental purchases.

Note that you usually can't book an Airbnb through your card issuer's online rewards portal, such as the Chase Travel℠ portal or Amex Travel . But you might see an option to book vacation rentals, like lodges, condominiums, and entire homes.

Cardholders of the Chase Sapphire Preferred® Card or Ink Business Preferred® Credit Card can earn 25% more value (1.25 cents per point) when they redeem their points for travel inside the Chase Travel SM , which offers a selection of vacation rental properties. With the Chase Sapphire Reserve® , points are 50% more valuable (1.50 cents per point).

But Chase isn't the only issuer offering this option. Cardholders of the Capital One Venture Rewards Credit Card (see rates and fees ) and Capital One VentureOne Rewards Credit Card earn miles on their purchases that can be redeemed for a 1:1 value to cover travel purchases, including vacation rentals.

2. Look for a travel statement credit

Though most of the best travel credit cards come with annual fees, these costs can usually be offset when you take advantage of the card's annual travel credits.

Both the Chase Sapphire Reserve® and the U.S. Bank Altitude® Reserve Visa Infinite® Card offer travel credits, $300 and up to $325 respectively, that can be applied to a wide variety of travel costs including vacation rentals.

If you have a credit card from one of the above five issuers, see how your card issuer classifies these types of travel purchases.

3. Redeem your credit card rewards for an Airbnb gift card

Many credit card issuers allow you to redeem your rewards on gift card purchases for hotels, rentals, timeshares, including Hotels.com, Four Seasons, Marriott and Hilton.

Chase cardholders, for example, can redeem their points through the CUR portal for a gift card at a select number of merchants, including Airbnb. The minimum redemption amount starts at 2,500 points, or $25.

Read about Chase's limited-time offer on gift cards: Save 10% on gift cards via Chase Ultimate Rewards

You will want to make sure you are redeeming your points for a 1:1 value (where one point or mile is worth 1 cent). At this redemption rate, for example, a $100 Airbnb gift card would cost 10,000 points.

Note that with many credit cards, redeeming your points for a gift card may not be the highest redemption value available. You'll want to weigh this option against others that can get you more value. (For instance, with Chase's limited-time Pay Yourself Back tool, you can get 1.25% to 1.5% more value on other types of purchases.) The Pay Yourself Back benefit ends Dec. 31, 2022.

Keep in mind that Airbnb has its own limitations when it comes to gift cards, such as not being used to pay for long-term stays, payment plans or changes to existing reservations.

4. Cash in on a cash-back card

You don't need a travel credit card to help earn a free stay at a vacation rental like Airbnb.

If you use a standard cash-back credit card , you can redeem your cash back for a statement credit . This helps offset the cost of your bill. So, you can book the vacation rental or Airbnb upfront and then use your credits to pay for some (or all) of the cost.

This is one of the simplest ways to cover the cost of a vacation rental since you are using credit applied to your balance without linking to a specific transaction.

For example, cardholders of the Citi Double Cash® Card (see rates and fees ) can earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24. The easy-to-use rewards program has no limit to how much cash back you can earn. Cardholders can redeem cash back for checks or statement credits once they've earned $25, so once you book your vacation rental or Airbnb, cash in to recoup the money you spent.

Bottom line

Whether you carry a travel credit card or a cash-back credit card, there's a way you can use your earned rewards to book vacation rentals.

While most of the travel credit cards have rewards programs where you can use your points to book lodging, check with yours first to see if vacation rentals fall under that category.

And for those that offer gift card redemption options, see if Airbnb is one of the merchants and what the redemption value would be if you used your points toward purchasing a gift card.

Information about the U.S. Bank Altitude® Reserve Visa Infinite® Card has been collected independently by Select and has not been reviewed or provided by the issuer prior to publication.

• How to use the Chase Sapphire Reserve travel credit Jason Stauffer
• Citi Strata Premier Card replaces Citi Premier: Enjoy travel insurance and other new benefits Jason Stauffer
• These are the best homeowners insurance companies in Florida Liz Knueven

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

3 Ways to Pay for Airbnb With Credit Card Rewards

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

These days, budget travelers don’t need to choose between scraping together enough points and miles for a brand-name hotel room or paying cash for a lower-cost option. Many banks now offer an appealing alternative that’s somewhere in the middle: You can redeem credit card rewards for Airbnb stays, often because of how payment networks code these purchases.

The home-sharing platform offers plenty of affordable lodging options — for example, you can choose to rent a private room in a house, or an apartment — which makes it easy to stretch rewards further. And landing a rental with a kitchen could also save plenty on dining out.

Here’s how you can cover that next Airbnb stay with credit card points.

How to pay for Airbnb with points

1. cash in flexible travel rewards points.

Co-branded hotel credit cards generally limit you to redeeming points within that particular hotel chain, while general travel credit cards offer more flexibility.

Take the Bank of America® Travel Rewards credit card , or any of the cards in Capital One’s lineup of Venture cards (including the Capital One Venture Rewards Credit Card , the Capital One VentureOne Rewards Credit Card and the Capital One Venture X Rewards Credit Card ), for example. These cards allow you to redeem points or miles for credit that can be applied to a broad range of travel purchases made on your card, including Airbnb purchases. That’s because payment networks classify spending at Airbnb in the same way as hotel purchases, confirms Airbnb.

Certain other home-share company purchases are classified as spending on real estate agents, which, unlike hotel spending, typically aren’t considered travel purchases. (Airbnb notes that previously, Airbnb spending was sometimes classified under travel agency purchases, but that’s no longer the case.)

Ian Thomas of Birmingham, Alabama, says he used the miles accrued on his Barclaycard Arrival Plus® World Elite Mastercard® to pay for a one-night Airbnb stay while traveling near Wanaka, New Zealand. He and his wife, Sarah, stayed in a house overlooking Lake Hawea.

With Airbnb, “you get to pick and choose what you want your experience to be like,” says Thomas, co-founder of the travel and lifestyle blog Simply Well Spent. One obstacle: On his card, miles cover travel purchases that cost more than $100, and his inexpensive Airbnb stays don’t always clear that bar. But because one night at the lakefront house cost $119, he was able to use his rewards to cover that stay.

2. Redeem rewards for Airbnb gift cards or cash back

Points and miles aren’t the only way to pay for Airbnb. You can also use cash-back rewards — say, the ones you earned on cards like the Citi Double Cash® Card or the Blue Cash Preferred® Card from American Express — to cover these expenses (or any other expenses, for that matter).

Another option: See if your issuer offers Airbnb gift cards as a redemption option. At the time of this writing, for example, Chase featured Airbnb gift cards in its travel booking portal. In the past, other issuers have also made these cards available. Keep in mind that Airbnb gift cards come with some restrictions. While they can be used to cover new reservations, they can’t be used for stays lasting longer than 28 days, changes to existing reservations or second payments (if you’re paying for a stay in two installments), according to Airbnb’s website.

Just be aware that redeeming rewards for cash back or gift cards (as opposed to booking travel) is sometimes a ho-hum redemption on some cards, especially certain travel cards. If you’re getting less than 1 cent per point or mile, try a different tactic.

But if you have expiring points and don’t have travel plans anytime soon, it can make sense to spend them on gift cards for future Airbnb stays — especially since Airbnb gift card balances do not expire.

3. Take advantage of travel statement credits

Carry a fancy credit card? Your annual travel credit might make your next Airbnb stay more affordable.

Chase Sapphire Reserve®

Such is the case for cardholders of the Chase Sapphire Reserve® , a travel card that carries an annual fee of $550 .

The card comes with a travel statement credit of $300 that renews each account anniversary year. The benefit is applied automatically, and a broad range of travel expenses are eligible, including Airbnb, the issuer confirms.

U.S. Bank Altitude™ Reserve Visa Infinite® Card

Similarly, the U.S. Bank Altitude™ Reserve Visa Infinite® Card — which carries a $400 annual fee — comes with a $325 annual travel credit that can be used for Airbnb stays, as long as the purchases are classified as hotel purchases, U.S. Bank confirms.

This credit is automatically applied to eligible purchases.

It also comes with a sign-up bonus: Earn an enrollment bonus of 50,000 points worth $750 on travel. Just spend $4,500 in the first 90 days of account opening.

If you happen to have unused credit when you book using one of these cards, this perk might just cover your whole stay.

» Learn more: The best Airbnb credit cards

Make your own 'Airbnb credit card'

Though no official co-branded Airbnb credit card is on the market, booking your stays with certain travel rewards cards can help lessen the financial sting (let's be honest, those cleaning fees are a bummer ).

In short: Spending on the cards recommended above can be a smart money move for Airbnb loyalists.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Citibank's application

1%-5% Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.

$200 Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

on Wells Fargo's website

2% Earn unlimited 2% cash rewards on purchases

$200 Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

1x-3x Earn unlimited 3X points on restaurants, travel, gas stations, transit, popular streaming services and phone plans. Plus earn 1X points on other purchases.

20,000 Earn 20,000 bonus points when you spend $1,000 in purchases in the first 3 months - that's a $200 cash redemption value.

Everything You Need to Know about Credit Card Balance Transfer

One of the biggest rules in personal finance regarding credit cards, is to honor your balance entirely, every single month! However, things happen, some circumstances may prevent full payments to be made, and you can find yourself easily pushed into the credit card debt.

Credit card debt is not easy to deal with, the interest fees continue each day that goes, your debt obligations pile up, and your minimum payments hardly touch the principal. The struggle can be real!

If monthly interest changes won’t let you pay off this debt, you might need to consider using a balance transfer credit card, to help you eradicate your debt once and for all.

What is a balance transfer credit card?

Consumers who want to move the amounts owed to a credit card, with a significantly lower promotional interest rate and better benefits, usually make credit card balance transfers. A balance transfer card is an actual credit card that offers a very low introductory interest rate for an already fixed promotional or introductory period (1.99% for example and six months respectively, for example).

Once the transfer is made, you will only be charged for the low interest rate set during the promotional period. After the latter ends, your card’s interest bounces back to its initial levels, that’s the main reason why you need to pay off most of your debt, if not all of it, before that happens. Balance transfer cards can allow you to consolidate other personal loans and lines of credit as well.

The best balance transfer offers available in Canada vary between 0% (which is very rare) and 3.99%. If used correctly, a balance transfer can allow you to save several hundred dollars in interest payments. Find below what those numbers look like for three different credit cards, paid off over 9 months.

As you can see, taking advantage of a low interest 1.99% offered by balance transfer will allow you to put the same amount of money on your debt each month, while saving up over $150 in the process. That’s how powerful a low interest balance transfer credit card can be!

What’s the catch? Transferring a balance requires carrying a monthly balance (even with a 0% interest rate), which still involves making on-time payments of at least the minimum due on the transfer, and for any new purchases. Fail to do so, and you might end up losing the credit card’s introductory Annual Percentage Rates (APR) on your transferred balances as well as the grace period while suffering from surprise interest charges -and probably penalty APR- on your next acquisitions.

You need to study your options and avoid high interest rates while paying down debt. In case you’re not familiar with it, a balance transfer APR is the annual percentage rate or interest rate charged to balance transfers. This is a different rate from the ones traced on to purchases, cash advances, and foreign transactions; your cardholder agreement lists the different APR for the different types of transactions.

As it is recommended, always read the fine print before making a decision! You might need to consider the following parameters before getting a balance transfer credit card:

• The rate of the Balance Transfer : You need to start by knowing the introductory rate offered, the closer to zero the better. Compared to the standard 19.99% APR, anything between 0% to 3.99% can be worthwhile. You might need to be aware if the card issuer charges a balance transfer fee, which is usually between 1% and 3%.
• Promotional Period : The longer the duration of the interest-free period, the better. This way, you will be allowed to pay off your entire balance during the promotional period if you can. However, the regular interest rate rises back to its initial after right after the end of this period.
• Annual Fees and Other Benefits : Does the balance transfer card have an annual fee? Are the benefits worth the cost if it does? For an informed decision, verify if the card offers any kind of rewards, like extended warranty, travel insurance, cash back, purchase protection, etc.

During the pandemic, credit card companies are assisting cardholders experiencing financial distress. Card issuers encourage struggling cardholders to reach out and ask about options such as lowering their interest rate, deferring payments, or avoiding late fees.

How do balance transfers affect my credit score?

Balance transfers can affect the credit score positively as well as negatively! It depends on several factors; someone with already good credit can be eligible for some of the best balance transfer cards available.

In general, if you follow a successful strategy regarding balance transfer and you end up paying off the amounts you owe on time, your credit score won’t be harmed. Paying your balance transfer bill on time every month can also boost credit because payment history is the key to have a positive impact on your credit score, and you will be eliminating the debt you’re carrying around while building a great payment history.

The amount of credit allowance offered by the issuer of the balance transfer card may determine how much a credit score improves, the higher the amount available, the more improvement possible.

At worst, the credit score won’t be highly impacted because the overall effect is neutral. But – there is always a but when it comes to Finance – a balance transfer consolidation strategy can hurt your credit score in some cases.

Find below some examples:

• If you charge on your other cards and increase your debt instead of getting rid of it, your credit utilization ratio will naturally go up, which means your credit score will eventually decrease.
• In case you miss payments because you can’t afford the monthly minimum requirements for one reason or another, or your debt is too big to handle within the period initially set, it will stain the credit history, decreasing your score.
• Your score will also decrease if you request several lines of credit within a six-month period. Be aware of applying for a balance transfer credit card around the same time you requested other loans and credit cards! Don’t forget that credit card applications are not grouped together, and each application counts as an individual one with its own credit check. This is not the same case as mortgages and auto loans applications for example, because they can get grouped together if they’re within a small window of time, so it doesn’t impact your credit score negatively as you work to find the best deal. Do your homework and choose the best option before you apply! To minimize the potential negative effect on your credit score, only apply for one card.
• The length of credit use isn’t a major factor in credit score calculation and evaluation, but it remains a factor! If you decide to terminate your credit card accounts after the balances’ transfer, it can impact the “age” of your credit history and closing older accounts will cause a decrease in your score. You don’t have to close a credit card just because you eliminated the balance, be strategic about using credit, keep your oldest account open and active, and use it to make a purchase occasionally before paying off the balance in full at the end of the month to skip interest charges. The account will remain in good standing without having debt hanging around.

Pros and Cons of Balance transfers

Credit card balance transfers can be helpful for the right person and scenario, but detrimental otherwise.

Take a step back and evaluate the pros and cons before you ask for a credit card balance transfer, depending on your financial situation! Your credit card must suit your lifestyle.

Advantages of balance transfers

Consolidate debt.

With a credit card balance transfer, you are allowed to combine multiple credit card balances by transferring them to the desired card. Putting all of your credit card debt into one balance through a transfer helps you focus on one payment with one due date, and tackle your debt faster by making single, monthly payments toward the same balance.

Handling one debt is easier to manage several ones, and you won’t have to manage multiple payments and due dates in the case of having multiple credit card balances.

Lower Interest Rates

Credit card balance transfers are mainly interesting because they offer the possibility of saving money on interest. What does it mean?

For instance, by consolidating your debt balances into one, you will improve your interest rate thanks to the credit card balance transfer. Many transfers also offer low introductory interest rates that can go all the way down to 0% APR during the first year, which can help you focus more your payments on your principal rather than interest.

If you can, do your best to pay off your debt before the introductory interest rate period lapses, because it will allow you to save on interest charges.

Move your debt to a different credit card

If you feel trapped with your current credit cards, or you are dealing with high interest rates and terms that don’t suit your needs anymore, you can always move your debt to a credit card that has a lower interest rate and more favorable terms (depending on your approved card), even a balance transfer card offering you rewards exists.

Nevertheless, wait until your transferred balance is completely paid off before you take on new credit card debt.

Disadvantages of balance transfers

While credit card balance transfers help individuals save significant amounts of money in many ways, it’s still crucial to identify and stay away from terms and details that may hold you back in the future.

Make sure you already have a clear plan on how you can pay off your debt with a credit card balance transfer, because it may cost you otherwise.

Balance transfer fee

Most good things are anything but free, which is the case for balance transfers!

Balance transfer fees can be charged any time you move one credit card balance to another, and these fees need to be considered before deciding whether you should transfer any balances or not. Consider that added cost before you transfer your balance to make sure you’re still saving money. Often between 3% and 5% of your transfer balance, this fee must be considered and evaluated before deciding to transfer any balances; for example, if you want to transfer a balance of $10,000 to another credit card, and the balance transfer fee is 2%, you will need to pay $200 upfront.

There are, however, some balance transfer cards that may waive this transfer fee if you complete your balance transaction within an already set period.

The low interest rate is for a limited time

While a low, introductory interest rate is an advantage of a credit card balance transfer, it can be a disadvantage because it doesn’t last forever. Balance transfer cards may offer a 0% intro APR, but only for a specific amount of time, anywhere from 6 to 21 months.

That means in case you’re using this card to pay off your debt, you should be aware of the expiration date of the promotional period, and at what level the APR will be after that.

You may not be eligible

To qualify for a credit card balance transfer, you typically need a good credit score. If not, you can still be considered but with a higher interest rate! which can make you question and reconsider the credit card balance transfer option altogether.

Replacing current debt with more debt

If you’re looking for a balance transfer, you must be hoping to get back on track, pay off your debt, and save money on interest. Credit card balance transfer agreements seduce customers with low interest rates and minimal fees in the beginning, but if you haven’t resolved the source and origin of the issue, having another credit card could easily lead to more debt.

Be conscious of the temptation to make more purchases with the new card’s appealing interest rates, and if you have chosen this method as a way to buy more items, you will end up with more debt than before!

Balance transfer fee explained

Intuitively, the term refers to the amount of money charged to transfer existing debt from one financial institution to another, and this fee -usually a percentage of the total amount- is usually charged by credit card companies when balances are moved from one card to another. New customers may be offered no to low balance transfer fees as introductory offers.

As a cardholder, you should know all the fees and costs involved, and you’re the only one responsible for any charges that may occur, balance transfer fees, interests on outstanding balances, late payment fees, over-limit fees, etc.

If you want to initiate a balance transfer transaction, you need to contact the card company to where the balance will be transferred. You will be asked to share the following details:

• the amount transferred
• your card’s account number

As mentioned before, customers often use balance transfers to move high interest debt to cards with lower interest rates, especially when there is an introductory offer involved. However, balance transfer checks can also be used for transfers or other purchases.

For example, a credit card balance of $10,000 at a 15% interest rate results in an annual interest expense of $1,500. If the credit card issuer offers a promotional interest rate of 2% for an introductory period of 12 months, with a balance transfer fee of 1%, and the deal ends up being accepted, the total cost of moving the entire amount will be around $300 (the transfer fee of $100 plus interest payments of $200). This way, $1,200 can be saved over the year.

Steps you need to come out ahead with a Balance Transfer

In order to make the most out of a credit card balance transfer, make sure to consider the following steps:

• Can You Qualify? Check your credit score to ensure you qualify. You risk higher interest rates with a low credit score (less than 560), even if you manage to qualify eventually.
• Review your Finances : assess your current financial situation before deciding to do a balance transfer and ask yourself the following questions: how much credit card debt you need to be transferred? What’s your current interest rate(s) and what will the transfer card interest rate be? How long do you need to pay off the balance?
• Don’t forget to read the Fine Print : Always pay attention to the terms and conditions of your credit card balance transfer agreement, because some transfers –if not all- have hidden fees, lower credit limits and card restrictions, as well as and higher interest rates on new purchases.
• Pay off your debt : You need to have all of your information ready for your application process, including your personal information, bank account information, and the amount of debt you are looking to transfer. Once approved, your old balance will be added to the new credit card (including the balance transfer fee).
• Pay on time : If it hasn’t been stressed enough, make sure you keep track of your history payments and pay on time. Late payments will compromise your low introductory rate.

How to choose the right credit card for a balance transfer?

Before applying for a balance transfer, try to keep an eye on:

• Promotions : If you want to pay your debt off rapidly, search for promotions; the lower the interest rate, the better!
• Promotional period : Verify if the offer in front of you is long enough for you to be able to pay off the balance. Once the promotion ends, the interest rate goes back to normal, and you will need to pay higher interest rates.
• Card issuer : You can’t transfer a balance to a card that’s from your same issuer. Do your research and look for the right one for you.
• Credit limit : The amount you are willing to transfer depends on the card you’re moving your debt to. For some cards in Canada, the maximum amount is the actual card’s credit limit, while it can only be 50% for other cards.
• Credit score : Your credit history will guarantee your qualification for the best balance transfer offers.
• No interest-free grace period : Unless you managed to use a 0% interest rate offer, you will be charged interest right after the balance transfer is posted to your account
• New purchases : The promotional rate agreed upon only applies to the balance you transferred, which means new purchases equal higher rates. Any payments you decide to make will go toward your balance transfer first. This means you will be charged on new purchases, which will keep adding up until you pay off your entire balance transfer

Before applying for a credit card balance transfer, find a plan that will help you pay your debt as soon as possible. Remember these three things; balance transfer fee, interest rate, and annual fee (always aim for the lowest).

To sum up, keep in mind that credit card companies make great offers to new and valued customers, like low-percentage introductory or teaser interest rates, which encourages new consumers to apply for cards, or to existing customers with good history track to transfer balances to them.

You are advised to look carefully at the terms before going through with an offer; the teaser rate and how long it lasts are two important things to consider.

All posts by Milesopedia

Suggested Reading

• Activities & Experiences