Credit card for hotel deposit abroad

Darren_Smith

Hello,

I'm travelling abroad soon and the hotel I am staying in requires a deposit to be paid for security purposes. I have been advised that it is better to pay this deposit on a credit card rather than a debit card. I just wondered what type of credit card is best for this purpose. Would it be better to use a 0% spending card or a travel abroad card?

Many thanks,

Darren Smith

[Deleted User]

A card which doesn't charge Forex fees, eg Clarity.

eskbanker

If you're spending in a non-sterling currency then the travel-oriented cards are typically cheaper, but that assumes you'd be paying it off quickly rather than carrying the balance from one month to the next.  Which credit cards do you have?

Darren_Smith

Thank you. I don't have any credit cards at the moment. I would be spending in a non-sterling currency and I would be paying off the balance within about a month.

Sandtree

It depends somewhat on if you intend for them to actually process a payment on the card, if you don't then it won't really matter unless you intend to trash the room or not turn up.

Ebe_Scrooge

As above, there are several cards now which don't charge Forex fees : https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

Using one of these will save you money compared to the exchange fees typically charged by most debit cards.  Plus you get the benefit of Section 75 protection, assuming the value is over £100.  Plus, if you make the payment in local currency and let the card provider do the conversion for you (as opposed to letting the hotel convert the cost to Sterling for you), you'll benefit from the best exchange rate you're likely to be able to get.

As noted by eskbanker, though, you do need to ensure that the balance on the card is repaid in full when the statement arrives.  Otherwise any savings you make will be offset/negated by the interest you'll be charged.

eskbanker

Darren_Smith said:

I don't have any credit cards at the moment.

Have you ever had credit cards?  If not, then you're unlikely to have the pick of the best deals and may have to start with something at the sub-prime end of the market, so it may all be hypothetical, depending on the state of your credit files - check your chances via eligibility checkers such as https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Darren_Smith

Thank you. If I was to get a 0% spending credit card, do some cards not charge a fee for abroad transactions?

penners324

Using booking.com sounds a good idea here...

lisyloo

Some cards don’t charge a fee for converting local currency.
they are usually not the same ones that offer 0% interest.
if you can afford pay it off then I’d go for one with 0% on conversion and pay it off on time. You can then use it abroad at atms with 0% conversion (atms might charge a local fee).

NoodleDoodleMan

Which country are you visiting ?

Most hotels will want a pre-authorised credit card if you want to "run a tab" for drinks or snacks etc.

Basically that's designed to stop guests doing a runner without settling their bar bill or other added debts.

If you don't register a card all your additional items will be on a cash only basis.

I wouldn't be travelling abroad without a "user friendly" credit card (no foreign fees) as per links above - and, ideally a second one as backup.

Not for ATM use, with a few notable exceptions.