Credit card or o/d

armyoftwo

Morning guys,

Right so I've been having a discussion with my friend about this topic. She doesn't have a credit card and thinks she doesn't need one. Fair enough. But I told her having a credit card is good for you when you book flights, hotels etc. Also that you are protected if you spend over £100. My question is, does an overdraft work the same way as the credit card in a protection sense?

Ta xx

[Deleted User]

Right so, no.

DCFC79

No it doesn't.

Dobbibill

As above....No!

You are referring to section 75 protection which is found on CC's not OD's.

Anthorn

armyoftwo wrote: »

Morning guys,

Right so I've been having a discussion with my friend about this topic. She doesn't have a credit card and thinks she doesn't need one. Fair enough. But I told her having a credit card is good for you when you book flights, hotels etc. Also that you are protected if you spend over £100. My question is, does an overdraft work the same way as the credit card in a protection sense?

Ta xx

The long answer is that a credit card is often absolutely required when booking a hotel or hiring a car. That's because they will reserve an amount on your card so they know you are able to pay your bill.

For the rest a credit card is not needed unless you need instant credit. They can be bought just as well with a debit card, prepaid card or even cash. But section 75 protection available with credit cards is not available with debit cards. However debit card transactions are covered by Chargeback but Chargeback is not a legal requirement like section 75.

Overall, if not using a credit card try to use PayPal which has its own protection.

armyoftwo

Thanks Anthony for your helpful reply.

Cheers for clearing that up.

Xx

armyoftwo

armyoftwo wrote: »

Thanks Anthony for your helpful reply.

Cheers for clearing that up.

Xx

Sorry I meant to write Anthorn :rotfl:

boliston

Anthorn wrote: »

The long answer is that a credit card is often absolutely required when booking a hotel or hiring a car. That's because they will reserve an amount on your card so they know you are able to pay your bill..

Surely a debit card will work as long as you have enough of an available balance for them to reserve funds on the card.

[Deleted User]

They'll invariably turn you down if you don't have a credit card. They need to know funds will be available in the event of damage.

A credit card will pay regardless of limit in most cases.

eskbanker

armyoftwo wrote: »

But I told her having a credit card is good for you when you book flights, hotels etc. Also that you are protected if you spend over £100.

I agree with the previous posters but would just add that section 75 protection only applies in the event of problems with who you're paying directly, so if you book flights, hotels, etc, through an intermediary such as a travel agent then section 75 doesn't give protection against, say, airline failure.

Read through the MSE guide at http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases for more details....

redux

Deleted_User wrote: »

They'll invariably turn you down if you don't have a credit card. They need to know funds will be available in the event of damage.

A credit card will pay regardless of limit in most cases.

And also when they are nearly full during the evening, they need to know you will turn up and pay. So they may reserve the right to try to charge before you arrive, and relet the room if that fails.