2022 Worry-Free Holiday on credit?

CrazeUK1

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?
I am hoping things would be better by then. But, it would be good if that extra level of protection was offered. I have seen different agents/airlines offering refunds, but some are stated as "non-refundable" for bookings from Jan 1st 2022.
I plan to pay in full on my credit card and pay off the total straight away to avoid the interest.
Thanks for your help.

[Deleted User]

It entirely depends on the terms of the booking and whether it's a package or different elements.  If, for example, accommodation is available but you choose not to/cannot go, you'd have no protection. 

A credit card only gives you the same rights as with the retailer.

Ebe_Scrooge

Remember the golden rule - S75 is a useful extra, but it's no substitute for proper travel insurance that includes cancellation cover.

[Deleted User]

CrazeUK1 said:

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?
I am hoping things would be better by then. But, it would be good if that extra level of protection was offered. I have seen different agents/airlines offering refunds, but some are stated as "non-refundable" for bookings from Jan 1st 2022.
I plan to pay in full on my credit card and pay off the total straight away to avoid the interest.
Thanks for your help.

Credit card cover (S75) is a right that makes the firm jointly liable with the provider for things like breach of contract, not because your holiday might be moved or destination put on a no-fly list, you need travel insurance for that.

Also, spending on the card and immediately paying it is pointless, you don't pay interest if your card is set to pay in full on the agreed date after a statement is generated.

pjread

Deleted_User said:

CrazeUK1 said:

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?
I am hoping things would be better by then. But, it would be good if that extra level of protection was offered. I have seen different agents/airlines offering refunds, but some are stated as "non-refundable" for bookings from Jan 1st 2022.
I plan to pay in full on my credit card and pay off the total straight away to avoid the interest.
Thanks for your help.

Credit card cover (S75) is a right that makes the firm jointly liable with the provider for things like breach of contract, not because your holiday might be moved or destination put on a no-fly list, you need travel insurance for that.

Also, spending on the card and immediately paying it is pointless, you don't pay interest if your card is set to pay in full on the agreed date after a statement is generated.

Worth bearing in mind not everyone clears their card every month, which if I recall rightly generally means interest from day of transaction if there's a trailing balance, regardless of size relative to transaction etc.

[Deleted User]

pjread said:

Deleted_User said:

CrazeUK1 said:

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?
I am hoping things would be better by then. But, it would be good if that extra level of protection was offered. I have seen different agents/airlines offering refunds, but some are stated as "non-refundable" for bookings from Jan 1st 2022.
I plan to pay in full on my credit card and pay off the total straight away to avoid the interest.
Thanks for your help.

Credit card cover (S75) is a right that makes the firm jointly liable with the provider for things like breach of contract, not because your holiday might be moved or destination put on a no-fly list, you need travel insurance for that.

Also, spending on the card and immediately paying it is pointless, you don't pay interest if your card is set to pay in full on the agreed date after a statement is generated.

Worth bearing in mind not everyone clears their card every month, which if I recall rightly generally means interest from day of transaction if there's a trailing balance, regardless of size relative to transaction etc.

Sure but what has this got to do with this post? OP said they wanted to pay on card and pay it off in full immediately, I was just pointing out there was no point doing this. There is no indication OP isn't going to pay it off.

If you don't clear your balance in full, you get charged interest on the whole balance (not what is left unpaid) and so yes there can be trailing interest if the card isn't paid in full

MEM62

CrazeUK1 said:

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?

This is what travel insurance is for.  

pjread

Deleted_User said:

pjread said:

Deleted_User said:

CrazeUK1 said:

Hello,
Just wondering, If I book and pay for a 2022 holiday with my credit card, would I be protected if, say, for example, the country was added to the Covid No-Fly list?
I am hoping things would be better by then. But, it would be good if that extra level of protection was offered. I have seen different agents/airlines offering refunds, but some are stated as "non-refundable" for bookings from Jan 1st 2022.
I plan to pay in full on my credit card and pay off the total straight away to avoid the interest.
Thanks for your help.

Credit card cover (S75) is a right that makes the firm jointly liable with the provider for things like breach of contract, not because your holiday might be moved or destination put on a no-fly list, you need travel insurance for that.

Also, spending on the card and immediately paying it is pointless, you don't pay interest if your card is set to pay in full on the agreed date after a statement is generated.

Worth bearing in mind not everyone clears their card every month, which if I recall rightly generally means interest from day of transaction if there's a trailing balance, regardless of size relative to transaction etc.

Sure but what has this got to do with this post? OP said they wanted to pay on card and pay it off in full immediately, I was just pointing out there was no point doing this. There is no indication OP isn't going to pay it off.

If you don't clear your balance in full, you get charged interest on the whole balance (not what is left unpaid) and so yes there can be trailing interest if the card isn't paid in full

I guess my point was we don't know the OP's position.  They suggested paying for holiday then paying the card company the value of the holiday immediately/same day - which may help minimise interest for them if they do typically carry a balance on the card.

born_again

pjread said:

I guess my point was we don't know the OP's position.  They suggested paying for holiday then paying the card company the value of the holiday immediately/same day - which may help minimise interest for them if they do typically carry a balance on the card.

Except that that payment of the amount of the holiday would go to previous statement balance, and not the holiday just paid for.
Why would you pay for the holiday in full anyway. Surely it would just be the deposit at this point?

phillw

Ebe_Scrooge said:

Remember the golden rule - S75 is a useful extra, but it's no substitute for proper travel insurance that includes cancellation cover.

It's best to have both, although the cost of travel insurance that covers covid is going to be high & you will probably need to take out travel insurance before booking your holiday.
https://www.fca.org.uk/consumers/coronavirus-cancellations-getting-refund-claiming-insurance

You may decide to make a Section 75 claim rather than claim on your travel insurance policy, as a Section 75 claim may not have the limitations outlined above. 

Generally, you should not have to contact your card issuer about a Section 75 claim before contacting your insurer. Under current guidance your insurer could ask you to speak to your card issuer before making an insurance claim. In some cases, you may be better off making a claim through that route. We are encouraging insurers to support you through the process of understanding your options and getting your refund. Where you could claim through your card issuer or insurer, there is nothing in our rules that stops your insurer settling the claim in full (so long as there is no disadvantage to the consumer in this). They could then, where appropriate, seek to claim back from your card issuer if there is a valid claim.