An important lesson learned re:traveling without a credit card: DON'T!!

[bobg529]

Sorry to burst anyone's bubble, but not ALL hotels will accept debit cards to HOLD a room. They might accept them for payment, but not for a reservation. The truth of the matter is that credit, in and of itself is not evil. It's a tool. Like any tool it can be misused. If you use a hammer to drive a nail, you build a home. If you use it to bash your thumb you break your thumb. It's not the hammers fault, it's the carpenters fault! Also, even a person who has experienced severe credit problems can get a credit card. True, you may have brutal interest rates but if you pay it off in full every month you will have the same rate as a millionaire, ZERO. You should not be planning to pay off vacations over time anyway. All that creates is perpetual debt. Use your credit properly, as a convenience and for emergencies. You will be much happier in the long run.

[JFontaine]

People with truly terrible credit will likely only be able to get a secured credit card. A secured credit card has a bank account as collateral - sometimes starting as low as $500. The credit limit is the same as the amount in the bank account. If the cardholder defaults, the credit card company will pay itself out of the bank account, plus interest (should be right under 25%, varies by state) and fees. If the cardholder pays on time, their credit improves, and in time the collateral account should be released if the cardholder requests release (the savings account funds can be withdrawn by the cardholder) and the credit limit should rise.

[A Sixth?]

I agree Cruisestitch. Always a wise idea to have at least 1 credit card, if nothing else, for emergencies. Thank you for your comments. I hope your having a better day today !

 

At least two IMHO just in case one is comprised. Keep them far apart.(Leave one in your safe)

 

Access to money while away from home is essential. Medical emegercy, or a big travel disruption like we're seeing here.

 

Recently my wife was "skimmed" and every single chipped card in her purse stolen. We now have added anti skimming envelopes to all our cards and passports.

 

[Project_gal]

In addition to a credit card to use and another as emergency back-up, we always travel with our debit card and ensure that there are sufficient funds in our current account [checking account] to cover most emergencies [excepting major medical emergencies, of course, assuming that our £5m travel insurance sum insured is not too far over the top]. Oh yes, and the direct telephone number of our bank branch so we can speak to people who actually know us.

 

Another point to consider about having a credit card is that they often come with an emergency telephone number. These are manned by people who understand what can [and cannot] be done in case of emergency. Sometimes just being able to get advice can be priceless.

 

Sue

[Indiem]

You don't need a credit card.

 

You can get a debit visa card. So even if you have a poor credit rating there is no problem getting one of these from your bank, as you use your own money.

Absolutely!! I have a MasterCard debit card that I reserve my hotels with. I can draw money with both my bank card and my debit card at any ATM at any countries that have ATMs. So a credit card is not essential. In my case my insurance immediately guarantees any expenses incurred.

 

And if the worse comes to the worst and some hotels refuse the Mastercard debit card then a safeguard is to have a close family member, in my case my elder daughter, to use their credit card to reserve the hotels. It's important to be well informed and it's good this thread was started in order for precautions to be take .

Edited August 22, 2013 by Indiem
typos

[uktog]

Maybe we are OCD but we always travel with two credit cards (sep banks one in DH name, one in mine) and two debit cards same arrangements with the banks advised we will be out of country.

 

We each have one credit and one debit card for travel with lower limits in case they are compromised, seeing as banks very kindly keep jacking our other limited up very high, we always ask them to keep one set of limits below 5 figs

 

Covers as far as we can

 

Card being compromised

One banks online systems being down (a frequent these days especially if you are abroad as you will be using the card during night time maintenance times back home)

And heaven forbid, one of us not having the capacity to use the card.

 

I would never expect a hotel to hold anything on a debit card, never even occurred to me to ask

[edjny]

You are exactly right. While I expect it is the exception rather than the norm, particularly on mid-priced, more upscale cruise lines, sometimes past credit catastrophes (however caused) can affect credit ratings for many, many years - long after the person has corrected whatever the initial issue was. The causes can be everything from the foolishness of youth, to job loss, to medical crises, to name a few, all of which can often be overcome after a few years time. But it takes upwards of 7 years I believe to clear credit ratings. In the interim, people can really be stuck even if their current financial situation is very stable.

 

All that said, I strongly agree with having at minimum one credit card with you (two are better). I know it is not always possible, but where it is, then it is highly, highly recommended particularly when not traveling with other close family or friends who could help you if needed.

 

If a person has such a bad credit rating that they can not get a CC through the usual route, there are other options to build up their credit. They could get one or two store credit cards, use them and pay them off every month. After awhile, they might find that they could get a regular CC. Also, some banks will issue a credit card that is tied to a bank account. The balance in the account is locked and if the payment is not paid on the CC, the payment is taken out of the bank account. These are just some possibilities to build up a good credit rating again.

[alexspepa]

Sorry to burst anyone's bubble, but not ALL hotels will accept debit cards to HOLD a room. They might accept them for payment, but not for a reservation. The truth of the matter is that credit, in and of itself is not evil. It's a tool. Like any tool it can be misused. If you use a hammer to drive a nail, you build a home. If you use it to bash your thumb you break your thumb. It's not the hammers fault, it's the carpenters fault! Also, even a person who has experienced severe credit problems can get a credit card. True, you may have brutal interest rates but if you pay it off in full every month you will have the same rate as a millionaire, ZERO. You should not be planning to pay off vacations over time anyway. All that creates is perpetual debt. Use your credit properly, as a convenience and for emergencies. You will be much happier in the long run.

 

I firmly believe that the credit card is probably the greatest creation in my lifetime other than the development of the internet - both have opened the world up to everyone...it is your responsibility to use both wisely.

 

fully agree with the op...

Edited August 22, 2013 by alexspepa

[smtcan]

Maybe we are OCD but we always travel with two credit cards (sep banks one in DH name, one in mine) and two debit cards same arrangements with the banks advised we will be out of country.

 

We each have one credit and one debit card for travel with lower limits in case they are compromised, seeing as banks very kindly keep jacking our other limited up very high, we always ask them to keep one set of limits below 5 figs

 

Covers as far as we can

 

Card being compromised

One banks online systems being down (a frequent these days especially if you are abroad as you will be using the card during night time maintenance times back home)

And heaven forbid, one of us not having the capacity to use the card.

 

I would never expect a hotel to hold anything on a debit card, never even occurred to me to ask

 

This is exactly what we do. We each have credit cards with very low limits for using overseas or for making Internet purchases, and cards with higher limits that stay in the safe for emergencies. We would never travel without the ability to deal with any emergency that might arise. Even my mother, who celebrated her 100th birthday this year has a credit card, and has had one for about fifteen years. She doesn't travel now, but did up to about five years ago.

 

Sheila

[Onessa]

Debit Cards - as others point out don't "work" like credit cards in all cases. Also with both credit and debit cards, many businesses routinely place a hold on much more than the intended billed amounts to cover other possible charges -- a hotel where the intended bill for the room reserved is $200, may place a hold on $400 -- to make certain that there will be enough funds available for any mini bar, room service, etc charges you may make, and may keep that additional hold for a few hows until the room is checked for damages, mini bar contents verified, towels counted, etc. So while you may have a credit limit of $1000 on your card, and think you have $800 credit "left", you really only have $600.

The other big difference between Debit and Credit is that I have a $12,000 limit on my VISA credit card, but may only have $4000 in the account to which my debit card is tied. That can make a HUGE difference!

 

Credit/Debit Cards - when you plan to travel, contact your credit card carrier and/or Debit card bank with your plans -- Thus my card knows it is probably me buying lunch at a brewpub in Tallin on August 27th, but will still question a charge being requested from Riga on December 3rd (yes it happened - no problem settling my bill in Tallin because they knew I was traveling there, but I did get a text alert before they would approve a sale with a vendor based in Riga a few months later -- Thanks, BankOne for keeping my interests in mind! In this case the sale was legit, but in many cases it may not have been)

[trinaM]

I appreciate an open discussion about what works for people regarding credit cards, debit cards, ect. thanks for sharing what worked and works for you!!

[celle]

I would have to echo the OP's advice.

 

I had a medical emergency 3 years ago in Tasmania, and maxed out 3 credit cards with bills for treatment which I had to pay before my Insurers eventually reached agreement with the hospital and surgeons, and started to pay directly.

 

Yes I eventually got all my outgoings back, but without my cards I would have been up the proverbial creek!

 

Exactly! We never travel without at least 2 credit cards - in case some emergency causes us to max out the limit on one card. We also never leave our own country without travel insurance.

 

Last April, on land after a long cruise, DH had to be admitted via a 911 call to a hospital in Canada. He was in hoispital fro 11 days and then we had to cancel the rest of our planned holiday and fly home, for continued treatment.

 

Once notified, it took the travel insurance company 9 days to agree to pay DH's hospital and treatment costs. Meanwhile, I had to pay "up front" for his care, and for local transport and hotel accommodation for myself, as well as to cancel our forward bookings, the costs of many of which were not refundable.

 

At one point, the hospital was considering a medical evacuation flight back to our home country, the costs of which would have been enormous - fortunately that did not prove necessary.

 

I had to purchase flights back home for us, at short notice, so no cheap deals, In addition, DH had to have a Business Class seat, because of his medical needs.

 

Apart from the hospital bills, which the insurance company did eventually pay direct, I had to pay in advance for all our expenses and then claim them back from the insurance company. While all our costs were eventualy reimbursed, they totalled over $30,000, all of which I paid initially using our credit cards. We would have been totally stranded without those credit cards.

 

IMHO, it is exceedingly foolish to travel without a credit card.

[myjillian]

Just remember when you use a credit card onboard..the cruise line puts a certain "hold" on that card...so you may not be able to use that card while onshore. Almost all cruise lines have their own credit cards...lets say that you have a $10k limit for a cruise credit card...you can divide that between the different lines ie Carnival/Princess/ Holland...Royal Caribbean and Celebrity would be a different card or Cards. The secret is, of course, don't spend what you can't pay off. I don't know if it's common knowledge but you can pay for your cruise on the "lay-a-way" plan. First put down your deposit then call in $100 here $200 there until just all paid up in case your cruise rate has a drop in price. Booking a cruise with the deposit then having the remainder paid off when the final is due is not the only way to use your money. It's a good feeling to know that when you board the ship...your trip has already been paid for and no bills to come home to.;)

[Clydesmom7865]

All true but as I said there are "pseudo" credit cards that appear to be regular cards but act as debit cards where you can only charge what you have deposited. They do work as regular cards for the purpose of putting a credit hold for hotels, rental cars etc.

 

There is NO car rental agency in the USA that I know of that accepts prepaid credit cards even with a VISA or MC logo. Some will take a debit card linked to a bank account but they do a credit check and if your credit is not good enough you still won't get the rental even if you have $50,000 in the account.

 

They will allow you to pay the rental on return with the pre-paid card but not take the car.

 

As for hotels: I have yet to see a hotel in the USA that refuses a debit card for renting the room. They do have signs up saying the hold will be larger than the room charge, may take several days to release depending on your bank, and they are not responsible for over drafts due to that hold.

Edited August 24, 2013 by Clydesmom7865

[Realitoes]

Last year, while friends of ours were visiting us in Europe, they had their bank account compromised. They had no other means beside their debit/ATM card to access funds. It was lucky they had a place to stay with us, but they still ended up canceling some trips they had planned and looked forward to! They didn't believe in credit cards before all this happen, but now they do.

 

If your traveling with just your debit/ATM card, consider having a secondary means of accessing some funds (from a separate account).

[slidergirl]

I work in the hospitality business for a large worldwide hotel company. Any hotel I've worked in will take a debit card for the deposit/guarantee. HOWEVER, what the hotel does is place a hard hold on the money in your checking account for the nightly rate +$100 for incidentals for every night of your stay. So, if you are there for 3 nights at a rate of $250/night, you will have $350x3 of your money inaccessible to you. When you settle up, it may still take up to 7 days or more (depending on your bank) to release any unused funds. I was surprised how many people did not realize this happened with their debit cards when I checked them in. The saddest encounter was a young couple on their honeymoon. They checked in on their wedding night for a 5 night stay. They used their Visa Debit card when they checked in. They went to dinner and found that the card was denied for insufficient funds. Turns out the hotel put a hold on almost all the money they had in the account and they had nothing to use for the rest of their honeymoon. They had to get on the phone to their parents to help them out.

I'm always surprised at the amount of phone calls I receive from guests or guests just checked out who look at their bank statements online and see that we've "taken" this money from them. I didn't realize so many people did not understand what happens when you check into a hotel...

Feel free to settle up however you want - cash, debit, etc. But, use a credit card to do the guarantee/deposit. It's easier to get credit extended because you have a pre-authorization than it is to get a bank to deposit extra hard currency in your account ;)

Edited August 24, 2013 by slidergirl

[Unitedflyier]

I have had an increasing problems with banks and security. I guess too many cards get stolen and counterfeited. Trying to withdraw cash from foreign ATMs can trigger it to be stopped. Payments now have to be verified by use of a smart phone you can verify payments with a text message. OK if you have a smart phone that works overseas.

 

My friend got a call from Amex asking her about possible fraudulent activity on her account. It was used in a local grocery store! I guess that was a first for her she only eats out in expensive restaurants LOL

 

I have an Amex card but lots of places do not take them. Even safes in your room can be opened it you know how. So your cards are never really safe at all.

 

I have had friends kidnapped in Europe for not paying thousands for a soda in a mafia owned bar. They wanted cash only to release them.

 

We nearly got thrown in jail when our minvan was stopped by plain clothes cops in Argentina. I have no idea why but the Spanish speaking girls in the van were screaming at them and refused to get out, they managed to get us released but the driver disappeared for a few days. I was pretty scared not understanding a word of what was going on.

 

I think you just have to be careful and aware of what could happen and alway tell someone else where you are and know who to contact incase you need to get bailed out somewhere.

 

You always need to have enough cash you can get in a hurry to get yourself out of a bad situation and worry about the right and wrongs of it later.

[brazilgirl]

We always travel with 2 credit cards : a Visa and a Mastercard. We pay our balance off in full every month .

 

Our CCs offer excellent benefits including very good travel insurance if travel is purchased using the card.

 

On our last trip , our son got sick while abroad . The travel asst. helped us find the nearest urgent care , made an appt. , we didn't have to pay at the visit. They called us twice to see how he was doing.

 

I would never travel without a credit card. It is a safety net.

[tlcoke]

I am one who travels using a Debit Visa Card, I have two on different accounts. I rent cars & hotels with them with no problems. I have only had one instance where I had an issue with a rental car company and they transferred my reservation to another company at the same rate who would take my card. Most rental car companies will rent with a debit card with proof of Travel.

 

I have been turned down by credit card companies for the fact that I pay everything in cash and do not have a Credit rating regardless of utility bills paid on time, this was also the reason, I had problems with the rental car company mentioned above, not the debit card itself. I do now have a credit card from my credit union that has a low limit on it (all they would give), that I carry for emergencies.

 

US Traveler's Checks are now issued on a Prepaid Visa or Mastercard Debit Card and can be an option for someone traveling rather than carrying cash.

[varoo]

Another way for someone to get a credit card and start establishing credit is to have someone with good credit co-sign for you.

 

As parents, lots of us have done that to help our children establish credit when they were starting out on their first jobs.

 

[wvufan]

While we're at it, make sure you let your credit card company know you will be travelling out of the country or they may not accept the charges.

 

Happy Sails to You

 

OOOEEE :D:D Bob and Phyl

[Jade13]

I guess I don't understand the poor credit ratings. If someone is having that hard of a time financially, how can they afford a cruise?

 

You wouldn't believe what some people do. We were on an African Safari earlier this year with A&K and one solo traveler was talking about all of her money problems and how she had refinanced her house to get cash. Meanwhile she was making arrangements for two more trips this year.

[Jade13]

I don't travel without a Visa and AmX credit card, and an ATM/Debit with Visa logo, plus my DH has an AmX as well. That plus a passport and my camera :)

[redcard]

Don't they use debit cards in America?

[varoo]

Don't they use debit cards in America?

Yes, but we only use ours to get cash from ATMs.

We have no other need for them.