Credit Card Help Please

gideonkrotosky

Hi All,
I'm confused - please could someone explain to me why it would be advantageous for me to take out a credit card before purchasing flight tickets for a holiday? I've never had a credit card and don't really want the hassle but have been advised that given the current economic climate, companies could go bust at any time therefore credit card companies offer cover. Is there anyway round this with a Nationwide debit card perhaps?

Which credit card would you advise me to get if I am only looking to use this potential credit card for tickets on flights and hotels? Currently, I only use a Nationwide debit card which has been fantastic and really only wanted to take this away with me but am realising that this may not in fact be the best thing to do.

Thanks in advance to all those who respond.

Tim_Parker

Yes credit card companies Do fight to recover cash and they do offer many advantages over debit cards.

I would say they are a good idea but set up a monthly direct debit to clear the balance every month - therefore using it much like your debit card but gets paid every month rather than same day.

That way you get the advantages but not the debt which im guessing your keen to avoid.

Tim_Parker

Which card to pick depends on what you want really, they all have different perks. for example, u can get ones from your local supermarket that probably give you extra reward points or you could get ones that offer free holiday insurance etc. it really depends what your looking for, but make sure it has a reasonable interest free period and not a crazy interest rate

YorkshireBoy

Paying for (currently high risk) items such as flights with a credit card gives you what's called Section 75 Protection under the Consumer Credit Act.

What this means in practice is the supplier of the goods/services and the credit provider (ie your card provider) are jointly and severally liable for ensuring you get your money back if things go wrong. Jointly and severally means if the supplier won't play ball the card provider will pick up the tab.

If you already bank with Nationwide, I'd suggest applying for their card. Like their debit card, it has the same 0% charge on foreign currency commissions.

normanmark

With Nationwide's 0% charge on foreign transactions just ensure you keep it to purchases on the card. As soon as you take the cash out on the credit card you'd be liable for the cash interest rates. In short, do purchases on the card whilst you're abroad and if you want cash use your debit card.

timcrips

Its important to shop around.

You can get

Free travel insurance
Cash back
Air Miles

http://www.creditchoices.co.uk/article.asp?id=credit-card-air-miles&kt=6670


And interest free money, so put the holiday money in an interest bearing account and get some free money!