Protection when paying for flights?

TravelPixa

Hello,

I hope I am posting this in the right place!

I am currently planning and saving for a three week holiday in October. My flights are costing me around £500. Everyone I have spoken to says I should book my flights using a credit card because I will get better protection?

I live at home and I have never had a credit card before, I work in a finance environment but I know nothing about personal finance in terms of credit ratings or credit cards.

I have some savings in my ISA, I have an overdraft which I nip into at the end of the month if a direct debit comes out on the wrong day. I applied for a Tesco Clubcard Credit Card (simply because I use clubcard points) but I got rejected.

Am I really better booking my flights with a credit card? If so, why? Which lender am I best going too?

Thanks for any advice in advance!

agrinnall

The reason for paying for a major expense on a credit card is that you get cover for your purchase under Section 75 of the Consumer Credit Act 1974, which makes the credit card provider jointly liable, so if, for instance, the airline goes bust you can recover your money from the credit card company. For full information read this http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases

TravelPixa

Thank you agrinnall. Really appreciate the information.

Off_PeakReturn

So, the added protection of paying with a credit card for flights in case the airline went bust doesn't really apply to established companies such as BA, Virgin or Thomson Airways, surely? Or am I missing something?

OPR

Plxply

Off_PeakReturn wrote: »

So, the added protection of paying with a credit card for flights in case the airline went bust doesn't really apply to established companies such as BA, Virgin or Thomson Airways, surely? Or am I missing something?

OPR

The cover extends much further than that, for any breach of contract you can take a claim up with your credit card company.

scottishblondie

Off_PeakReturn wrote: »

So, the added protection of paying with a credit card for flights in case the airline went bust doesn't really apply to established companies such as BA, Virgin or Thomson Airways, surely? Or am I missing something?

OPR

If you book a flight several months in advance, you never know what might happen! But it doesn't just cover that, as plxply said. I always put large purchases on my CC just in case, as the section 75 protection gives me extra peace of mind.

TravelPixa

Thanks for the information. I've just applied for a credit card from my bank (just switched to Halifax) and I have been rejected again!

I have no idea why I am being rejected. What can I do to improve my credit rating? I have a little bit of savings in an online savings account, I have an ISA (although I am always moving money around in my ISA - naughty I know!), I have an overdraft which I dip into but it's not a monthly occurrence. I have a contract phone which is paid by DD.

I'm sorry if this question has been asked a lot! I'll have a search of this website but I would be grateful for any advice. I'm now worried about paying for my flights unless I can do it on a credit card and prices for the flights are starting to increase - argh!

luci

You need to apply for a sub-prime card such as Capital One Classic or Vanquis and manage it well by paying it off in full every month to build your credit rating.

Then you can try applying for another card in maybe 6 months time if you need one.