Credit card holiday protection

adandem

Hi, hope someone can help.
We need to pay the balance of our holiday, if we apply for and use it to pay the balance, will we still have credit card protection?  Many thanks

born_again

Depends on what protection you are talking about.
Credit Card is not the same as Travel Insurance.

Tildaplum

did you pay direct to the supplier or via an agent? is it a package holiday?

adandem

I'm thinking about if the holiday won't go ahead, worst case scenario company goes bump. It's for a package holiday. It's Tui, they're automatically giving credit and then you apply for a refund. I'm concerned that if the company goes out of business whilst I'm in possession of credit vouchers ?

Tildaplum

If it is a package holiday then it is protected by ATOL if tui go out of business

I think I read somewhere that vouchers are also being protected in this current climate but perhaps you could Google it and check

MallyGirl

From what I have read - given that I am in the same situation - an RCN is backed by ATOL even if the holiday company goes out of business and if you haven't managed to use it in 2 years then you can get your money back. Obviously this ties your funds up for a long time if you don't book again and use the voucher. I have taken out a 0% purchases credit card specifically to pay my balance so that at least it isn't my bank balance being hit.

MEM62

adandem said:

I'm thinking about if the holiday won't go ahead, worst case scenario company goes bump. It's for a package holiday. It's Tui, they're automatically giving credit and then you apply for a refund. I'm concerned that if the company goes out of business whilst I'm in possession of credit vouchers ?

That is what travel insurance is for and a credit card is not a suitable substitute for insurance.  

Tildaplum

a credit card is a perfectly acceptable substitute for that part of travel insurance which would cover you if for example an airline or hotel etc went bust - provided of course you have paid them direct and not via an agent.

kar7en

I’ve received a letter today from RBS credit card stating they have cancelled my Payment Protection cover (didn’t know I had it )  as due to a change in my circumstances- self employed and not working my eligibility has changed. Surely with Covid that’s what the cover is for?

born_again

Payment protection is to pay the credit card bill, should you lose your job. Nothing else. 
Pretty sure you can only have it if you are employed and not self employed.