It’s holiday time, or, more accurately, it’s time to book your holiday, which isn’t quite the same thing but it’s still really exciting. How do you go about it? Should you use your debit card or should you use your credit card, or should you, maybe, pay in cash? OK, paying with cash is crazy-talk, straight up crazy-talk. No one pays for a holiday with cash anymore. So your options are basically two-fold: debit card or credit card. You could book using your debit card but then you’d be missing out on all the splendid advantages you get when booking your holiday with a credit card. What benefits you bellow? Keep it down buddy, there’s no need to shout.
One of the biggest advantages of booking a holiday with your credit card is that you get some extra protection. Now we should mention that this protection is not all-encompassing but under Section 75 of the Consumer Protection Act your credit card company must protect any purchase you make between £100 and £30,000. So if product doesn’t meet your expectations, you could get a refund. For instance, if you buy a TV with your credit card and it turns out it’s actually broke, you should (in most cases anyway) get your money back. In the case of holidays, you could book a flight and the airline suddenly shuts down, again you could be refunded.
This doesn’t cover every single eventually, particularly in the case of consumer negligence but it’s more protection than you get with a debit card and is just one good reason that the credit card is the way to go when it comes to booking holidays.
Pay the deposit
Alternatively, if you don’t want to put the whole cost of your holiday on your card (it’s probably quite a lot and racking up a large bill on your card should never really be encouraged) then you can just pay the deposit with it, which will still give you some protection if the holiday is cancelled and also means you don’t have to worry about repaying your debt over a long period of time.
Find the right credit card
It’s pretty rare these days to find a credit card that doesn’t charge for purchases abroad but there are still a few hanging around. So, if you can find one, it is best to use that to make whatever purchases you’re making on holiday (well when cash isn’t an option) as it should cost you less than using your debit card. However if you don’t find such a card, using your credit card abroad can be quite expensive so make sure you know exactly what you are being charged before you start throwing you card around.
Update: Competition has now closed – the lucky winner was Nicola!
Stand the chance to win a £30 ASOS voucher by revealing your top holiday story! Whether a cheeky lads on tour tale or your first City Break with a special lady, we are all ears! Enter by posting a comment below – we will accept entries until the 10th May 2014. Please ensure you include a valid email address in the designated field below so that we can contact you if you’re the winner! Only one entry per person allowed.