Benefits of Using a Credit Card on Holiday

Posted by admin On November - 11 - 2011 0 Comment

Many people use their credit card on a regular basis, but they can also be useful for ‘special’ or one-off purchases, such as holidays and use while you are abroad. This article looks at how credit cards might be able to help you when you are booking a holiday, as well as when you are away.

One of the benefits of credit cards is that they are protected by something called purchase protection. This is granted by section 75 of the 1974 Consumer Credit Act, and it provides cover for credit card purchases between £100 and £30,000. This means that if, for instance, the company you have booked your holiday flights with goes bankrupt before you travel, you should be able to claim a refund as it is the card provider and the supplier that is responsible, not you. Wherever possible, though, make sure you book with a provider who has ATOL protection for extra insurance.

Another reason many people use credit cards on holiday is because they offer extra protection against fraud. The chances are that everything will be fine while you’re on your trip, but if you do experience fraudulent activity on your card then as long as you notify your credit card company straight away, you won’t be liable for any subsequent fraudulent purchases.

Credit cards can also be useful for emergency situations. For instance, if you find yourself stranded abroad because your travel operator goes bust or a situation in your host country means you’re unable to travel, your credit card can be used to cover emergency costs until you are able to claim on your travel insurance. Just remember that those purchases will still need to be paid off as normal, so make sure this is something you’ll be able to do if necessary – and don’t forget your travel insurance so you’ll be covered for any eventuality!

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