Do I need a Credit Card to Travel Abroad

sentientpoet

In my experience (I travel overseas a lot) there are ways around it, but in some places some form of credit card is near essential.

Check your hotel for one - usually they require a deposit against potential additional charges (room service, spa fees etc), and in some cases (ie some hotels in the US) this can only be done by credit card - they block off a proportion of the available credit at up to $150 per night of your stay, even on a pre-paid room. Other hotels will just take the card details, or will accept a debit card, and will not pre-block a proportion so no probs.

For car hire, I've had different results in different countries with different companies, although often if you go for a complete package (ie with a tank of fuel included and full insurance cover so there's a zero excess) you can get the car without leaving a deposit at all. I have also been faced with having to supply a €1000 credit card deposit even though the car was pre-paid by my company (think that was Avis in Italy from memory), and usually a pre-pay 'credit' card won't be accepted. Always worth checking before booking.

OhReally_2

smurkej wrote: »

Hi,

I am visiting Iceland next year and wondered if I need a credit card to travel with. At the moment I do not have one.

I have a Visa Debit card and have paid for the flights with that and was going to pay for everything with it but I have been advised by the old man to get a credit card as a neccessity, I don't think I would be able to get one with my credit rating though.

Is it really necessary that I have one? We are planning car hire and I've already paid for one tour with my Visa Debit card but I'm now reluctant to purchase anything else as I may not be protected if companies go bust etc.

Many thanks for any help.

Why does your old man think it is a necessity to have a credit card to travel abroad?

A passport? Yes
A visa (of the visitors type)? Depends, but I don't think you need one for Iceland.

But I've never been stopped when leaving the country to check I have a credit card.

Enlighten us please.

smurkej

Thanks guys,

The problem I have is that I've read that with a credit card / the halifax clairity card at least, you should not withdraw cash from any ATMs to avoid getting charged for it.

But my Debit card cash withdrawals would be 1.5% min. £2 max £4.50.. so if I wanted to withdraw cash I'd be stuffed either way!

smurkej

OhReally wrote: »

Why does your old man think it is a necessity to have a credit card to travel abroad?

A passport? Yes
A visa (of the visitors type)? Depends, but I don't think you need one for Iceland.

But I've never been stopped when leaving the country to check I have a credit card.

Enlighten us please.

He spoke to me on the phone last night and told me that I must get one because I would be covered in case any of the companies I made purchases through went bust or something happened where I was unable to use the product or service I had purchased.

He says there is no comeback with using a Debit card and that it's as good as using cash... and also mentioned being able to use a credit card incase of an emergency.

My Dad, like a lot of others is very wise and the voice of experience to me, whatever he says has always tended to be right and transpired to be the right thing to do, but I'm questionning it because sometimes I don't think he reads ALL of the facts first - I'm not sure if he knows about charge back on debit cards for instance, which is one of the reasons I created this thread, to find out if I do indeed need a credit card to protect myself and have a stress free Holiday.

Upon further reading today about using debit cards abroad I have discovered that I would be paying

2.99% + £1 1.5% min. £2 max £4.50

if I were to go abroad and just use my visa debit card, which I was planning to, but with the Halifax Clarity credit card I wouldn't incur any of those charges.

Paully232000

smurkej wrote: »

Thanks guys,

The problem I have is that I've read that with a credit card / the halifax clairity card at least, you should not withdraw cash from any ATMs to avoid getting charged for it.

But my Debit card cash withdrawals would be 1.5% min. £2 max £4.50.. so if I wanted to withdraw cash I'd be stuffed either way!

No, the halifax clarity is good for abroad. These are its fees

Loading (exchange rate fee). Europe: 0% | Worldwide: 0%
Cash withdrawals. Fee: FREE |
Interest on cash withdrawals?: Yes, until it's repaid in full
Representative APRs. Spending: 12.9% | Cash: 12.9%

http://www.moneysavingexpert.com/tra...p-travel-money

smurkej

Paully232000 wrote: »

No, the halifax clarity is good for abroad. These are its fees

Loading (exchange rate fee). Europe: 0% | Worldwide: 0%
Cash withdrawals. Fee: FREE |
Interest on cash withdrawals?: Yes, until it's repaid in full
Representative APRs. Spending: 12.9% | Cash: 12.9%

Ah ok so if I do withdraw cash with it then as long as I pay if off via Internet banking the same day I wouldn't incur any interest?

pacontracting

Your dad is right to a certain extent. You don't NEED a credit card but it's a good idea to take a couple of them.

I've been in situations where my zero percent card wasn't accepted by an ATM ( even though I told the bank I was travelling) but I had another card that I could use. The 3% was worth it in this situation as a fall back while I got the zero percent card unblocked ( skype is very useful here to avoid high costs when overseas and you are trying to phone your bank). Once unblocked, I was then able to use the zero percent card for the rest of the trip.

I personally travel with a Clarity card and a Nationwide Select but that's just me.

Also be wary that a lot of ATMs charge a local fee. Some vendors will also attempt to convert your purchase into £'s at a really bad rate, negating any saving you make with a 0% card.

Paully232000

smurkej wrote: »

Ah ok so if I do withdraw cash with it then as long as I pay if off via Internet banking the same day I wouldn't incur any interest?

Very little, if any interest if you did that

and from a personal point of view i wouldn't go anywhere, especially abroad without at least two/three payment methods, one of which being a credit card

OhReally_2

smurkej wrote: »

He spoke to me on the phone last night and told me that I must get one because I would be covered in case any of the companies I made purchases through went bust or something happened where I was unable to use the product or service I had purchased....

That's nothing to do with going abroad though. :huh:

http://www.moneysavingexpert.com/credit-cards/credit-card-tips

smurkej wrote: »

Upon further reading today about using debit cards abroad I have discovered that I would be paying

2.99% + £1 1.5% min. £2 max £4.50

if I were to go abroad and just use my visa debit card

Now you are just making some selected facts (which may or may not be true) meet your story.

Check out the current account debit card charges (for use abroad) from the likes of Norwich & Peterborough BS, Cumberland BS, or Metro bank

smurkej

OhReally wrote: »

That's nothing to do with going abroad though. :huh:

Now you are just making some selected facts (which may or may not be true) meet your story.

Check out the current account debit card charges (for use abroad) from the likes of Norwich & Peterborough BS, Cumberland BS, or Metro bank

Thanks, I've had a look at N&P's Classic Gold account and the debit card fees are fantastic for abroad. But it would mean having to pay in £500 every month whilst I'm happy with the account I have already for doing that.