Need a credit card before going travelling but confused with terminology...

subscriber

Off backpaking in a few months time and am gonna need a credit card whilst travelling for security of finances, ability to book internal flights, ect...

Have never owned a credit card before now which means i am not familiar with the terminology associated with them and haven't really been finding a Google search all that helpful...

The only grasp I have on things is that the "transfer" rate probably doesn't apply to me considering this is my first credit card.

Won't be looking to use any withdrawal of cash from machines unless in extreme emergencies so will mainly be used for POS transactions or booking online flight.

Any hints or tips on understanding the lingo and or choosing a card?

gercoral

get the 3money card. best thing since sliced bread. it's a prepaid card, so you can only spend what you have on it, and if you run short of funds, you can transfer money from bank account. got me out of many a sticky situation when travelling abroad!

schaffer1969

Credit cards are bad news if you don't pay them off by the end of the month.
I've got direct debits on mine as I used to forget and end up paying stupid fees.

Try one of the Visa debit cards instead. They should be accepted anywhere a Visa card is accepted and they come directly off your bank account.

coylemj

A credit card will allow you to spend up to a preset credit limit and you will get up to 6 weeks free credit from the date of purchase after which you can pay off the full bill and incur no interest. If you allow a balance to transfer to the next month's bill, you will pay a relatively high rate of interest, credit cards are one of the most expensive form of personal credit so make sure that what you buy on the credit card you can afford to pay off in full every month.

A debit card involves the merchant taking the money straight out of your bank account at the time of the sale. Think of it like you're paying by cheque but the cheque is instantly cashed and the money taken out of your account. That means that with a debit card you cannot overspend but it also means that you must have the money in your account to meet every purchase.

You mentioned 'emergencies' in which case I'd have a credit card since the credit limit gives you the flexibility to book flights and buy emergency supplies whether you have money in your bank account or not.

If you are going backpacking then this probably won't apply but there is a significant difference between credit and debit cards when it comes to car rental and staying in hotels. When you use a credit card to hire a car or check into a hotel, the merchant is able to ringfence a part of your credit limit to cover damage (car hire) or in case you do a runner or rack up a massive bar bill (hotel). As soon as you return the car undamaged or check out of the hotel and settle your bill, this money is released, it will never appear on your credit card bill so most times you won't notice it. This facility does not exist with a debit card so instead, the merchant is liable to extract the equivalent amount of money as a deposit from your debit card account and after the transaction is complete, it may take a few days for the money to arrive back in your account, potentially leaving you high and dry in the interim with no money.

subscriber

gercoral wrote: »

get the 3money card. best thing since sliced bread. it's a prepaid card, so you can only spend what you have on it, and if you run short of funds, you can transfer money from bank account. got me out of many a sticky situation when travelling abroad!

I'm familiar with them but there not any different from visa debit cards.

gercoral

subscriber wrote: »

I'm familiar with them but there not any different from visa debit cards.

I think they are safer though. when i went travelling in south america, my visa debit worked maybe 70% of the time. the 3money card worked 100%.
you can loads of money on it, use away on it, and use your debit card in emergencies?
i dunno, but i really think it;s a good card

subscriber

gercoral wrote: »

I think they are safer though. when i went travelling in south america, my visa debit worked maybe 70% of the time. the 3money card worked 100%.
you can loads of money on it, use away on it, and use your debit card in emergencies?
i dunno, but i really think it;s a good card

I totally understand what you're saying and i apologise if I'm coming accross rude as its not intentional but surely loading money onto a 3 money card and then taking debit transactions from it is fundamentally the same thing as having money in my bank account and then taking debit transactions from my bank account using my visa debit card...

The whole purpose of needing the credit card was to have access to credit (funds/money) above and beyond what I have in my bank account specifically for emergencies purposes.

brisan

Look for a card with a low introductory rate
i have an AIB be card (Visa)
there was a 4% introductory rate at the start with a 5 grand limit.
If I spent 5 grand on the card in a year then the low rate continues for another year
good deal IMHO

coylemj

brisan wrote: »

Look for a card with a low introductory rate
i have an AIB be card (Visa)
there was a 4% introductory rate at the start with a 5 grand limit.
If I spent 5 grand on the card in a year then the low rate continues for another year
good deal IMHO

The only sensible way to use a credit card is to pay off the balance in full every month in which case the interest rate is irrelevant.

Let me put it another way: if the interest rate is going to affect the decision as to which card you go for, you shouldn't get a credit card in the first place.

brisan

coylemj wrote: »

The only sensible way to use a credit card is to pay off the balance in full every month in which case the interest rate is irrelevant.

Let me put it another way: if the interest rate is going to affect the decision as to which card you go for, you shouldn't get a credit card in the first place.

Yes I agree and in 35 years i have never paid a penny in Interest on a credit card.
However the OP is travelling and needs the card for emergencies so he may not have access to funds to pay his card off within the month.
In this case if he is going to have to pay interest then surely it should be at the lowest rate possible.
Not everybody is fortunate enough to be in a financially secure position where they have enough cash on standby to cover all emergencies or to pay their CC off in full every month.
Life often gets in the way of the the best laid plans of mice and men