Safer Puchases with Credit Card even if Prepaid?

TooAshamedToBeNamed

Morning everyone, looking to pick some brains please!

Financially I'm in a rubbish position but getting better (DFW) slowly and I'm trying to be sensible and make better decisions. I have something coming up and want to run my ideas past you all to see if they make sense or not.

The situation, basically a family member is getting married abroad in 14 months time, they have given me lots of notice (I knew end of last year an have been putting a little bit aside as an when I can) My children have never had a proper holiday so I want to do everything I can to make this happen and will make it a full week as the hotel prices arent bad its the flights that shocked me! anyway we need those however long we go so i find the extra days justifiable. However, I had a few concerns.

1 - I cant rely on a last minute deal I need to book with a deposit and pay in instalments, so what if they change the date? (I spoke with the bride to be and have waited until after they have booked and paid for most of their flights and accommodation so this is unlikely)

2 - They aren't the most stable couple, if they call off the wedding I cant afford to just lose out. (I have again spoken about this an besides they expected 'we won't' response it has been made clear if I pay for it we will be going, wedding to attend or not - this was accepted but I doubt they would be so understanding if it actually happened.

3 - and this is my main concern . . . wih everything we hear on the news etc, what if a company I use goes bust or something else?

I discussed this last point with some others who are going and they all just say, put it on the credit card so you're covered . . . I DONT HAVE ONE! and more to the point, don't want one (and a third valid point, wouldn't be accepted for one) I dont want any more debt so my main question is, would a prepaid credit card provide the same cover? also keeping in mind it wouldn't be a full purchase but payments in instalments?

If so, can anyone recommend the best one? or give advice on what to look for? any advice would be appreciated, not just about the card question but the situation in full which is why i added m other concerned an what it was for.

Thanks in advance

Tixy

Would you be able to get a subprime credit card? if you could then you only need to pay a small deposit on the credit card to get full section 75 protection on the whole purchase. This would seem the best solution if you could get one just with a £250 limit or something. Then once you have paid a £50 deposit of whatever just cut up the card.

Most prepaid cards do not have section 75 protection but 1 prepaid card does have something similar that is the cashplus card - details towards the bottom of this page http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases

spinningsheep

Hi TooAshamedToBeNamed, take out a CashPlus Prepaid MasterCard with Creditbuiler. They "loan" you £60 that you never see and pay back over 12 months at £5 a month from the funds you load on the card, this is reported to the CRA's as a loan agreement repaid thus helping your credit score, this also then turns the card into a credit product and you therefore have section 75 protection for any purchases over £100, even if as Tixy says you only paid 50p worth using the card, you're still covered up to the full amount should the retailer go bust. Also they gave me a £100 overdraft on it so makes it like a credit card. Many people knock it on here but this card acted as a stepping stone to me getting an Aqua card with a £600 limit so must have done my credit score some good! Also guarenteed to be accepted.Well worth a look.

chattychappy

spinningsheep wrote: »

Hi TooAshamedToBeNamed, take out a CashPlus Prepaid MasterCard with Creditbuiler. They "loan" you £60 that you never see and pay back over 12 months at £5 a month from the funds you load on the card, this is reported to the CRA's as a loan agreement repaid thus helping your credit score, this also then turns the card into a credit product and you therefore have section 75 protection for any purchases over £100, .

I don't follow that. You don't get S75 protection by virtue of the card being a "credit product". You get it as a result of the transaction being financed an agreement under the CCA1974. If you pre-load a conventional CC (usually against the T+Cs, of course) then S75 doesn't cover purchases until the positive balance has been burnt off.

Tixy

The cashplus prepaid isn't legally section 75 protection, it is described as 'similar' protection to s75.

Definitely preferable to go for a proper credit card if its an option. But if its not then the cashplus could be an alternative.

sharp910sh

TooAshamedToBeNamed wrote: »

Morning everyone, looking to pick some brains please!

Financially I'm in a rubbish position but getting better (DFW) slowly and I'm trying to be sensible and make better decisions. I have something coming up and want to run my ideas past you all to see if they make sense or not.

The situation, basically a family member is getting married abroad in 14 months time, they have given me lots of notice (I knew end of last year an have been putting a little bit aside as an when I can) My children have never had a proper holiday so I want to do everything I can to make this happen and will make it a full week as the hotel prices arent bad its the flights that shocked me! anyway we need those however long we go so i find the extra days justifiable. However, I had a few concerns.

1 - I cant rely on a last minute deal I need to book with a deposit and pay in instalments, so what if they change the date? (I spoke with the bride to be and have waited until after they have booked and paid for most of their flights and accommodation so this is unlikely)

2 - They aren't the most stable couple, if they call off the wedding I cant afford to just lose out. (I have again spoken about this an besides they expected 'we won't' response it has been made clear if I pay for it we will be going, wedding to attend or not - this was accepted but I doubt they would be so understanding if it actually happened.

3 - and this is my main concern . . . wih everything we hear on the news etc, what if a company I use goes bust or something else?

I discussed this last point with some others who are going and they all just say, put it on the credit card so you're covered . . . I DONT HAVE ONE! and more to the point, don't want one (and a third valid point, wouldn't be accepted for one) I dont want any more debt so my main question is, would a prepaid credit card provide the same cover? also keeping in mind it wouldn't be a full purchase but payments in instalments?

If so, can anyone recommend the best one? or give advice on what to look for? any advice would be appreciated, not just about the card question but the situation in full which is why i added m other concerned an what it was for.

Thanks in advance

You are not covered if you decide not to go on holiday, due to the wedding being canceled. Section 75 is not designed for that. You need some insurance.