Need a credit card for anything these days?

muloc

Hi,

Just been hit with the €30 stamp duty and wondering if I actually need a credit card anymore.

Is there anything you can only do with a credit card?

All I can think of is renting a car but can you do this with a debit card? It's years since I rented one.

Also, it was always reckoned credit cards were more secure for buying online than debit cards. Is this still the case?

I tend to use revolut for most online purchases now anyway.

Cheers.

Akrasia

If you don't have a credit card Some car/most rental companies won't take your booking. Some Hotels won't accept a booking without a credit card (which is ridiculous) Was at a funeral last year and they wouldn't take my Debit card when checking in

muloc

Cheers. I best hang on to it then.

https://www.boards.ie/discussion/comment/120438477#Comment_120438477

The hotel thing is to keep Travellers out believe it or not.

Henry Ford III

I heard they use Travellers Cheques.

Dr Turk Turkelton

https://www.boards.ie/discussion/comment/120438644#Comment_120438644

Ba-dom-tish.

the_amazing_raisin

https://www.boards.ie/discussion/2058291034/need-a-credit-card-for-anything-these-days

I got rid of mine last year, never looked back. It was encouraging bad habits and I was ending up spending my cash for next month on this month's credit card bill

I realise a lot of that depends on your level of self discipline, apparently mine isn't great

I haven't encountered anything in life where I've needed a credit card. The only one I know of which can be tricky is renting a car but I believe there's ways around it, such as pre-booking the car.

Often it seems the rental company will put a large hold on your card, so you'll probably want to double check everything in advance

Haven't found a hotel that didn't accept debit card, but I also always pre-book hotels through a site like booking.com so perhaps that has some extra payment protection for the hotel

I would examine the benefits of a credit card like buyer protection and access to emergency money before making any decisions. If you have similar facilities with your debit card then you probably don't need a credit card

Jim2007

https://www.boards.ie/discussion/comment/120438621#Comment_120438621

Not. Its to filter out anyone who is likely to be unable to pay the bill you run up. If you can't manage to get a card with a basic limit, it's not worth taking a gamble on you.

https://www.boards.ie/discussion/comment/120439976#Comment_120439976

You need to have a word with Pat McDonagh, off the record of course.

893bet

In the event your card is scimmed with a credit card it’s the banks money not your money that is missing.

Now if a debit card is skimmed you may get it back but you might be waiting.

Del2005

https://www.boards.ie/discussion/comment/120439362#Comment_120439362

The only way to not get several thousand blocked on your card when renting a car is to take out the hire companies full insurance, that will be a lot more than €30 if renting for more than 1 day. You can get 3rd party excess insurance cheaper but you have to claim for that after the rental company has charged you.

Hotels will always block money on the card presented.

You are hoping that the hotel or rental company will release your money quickly when you leave the hotel or return the car if you use a debit card, with a credit card they don't block your money.

apache

I never had a credit card, just a debit card. I didn't really find it a problem paying for hotels here but in the States I had to give a large amount of cash as a security deposit. I get by with a debit card.

coylemj

https://www.boards.ie/discussion/comment/120440028#Comment_120440028

I booked a car with Europcar in Lanzarote in 2020, just before Covid. The excess on the rental was about €800, I declined their insurance but they only blocked €300 on my card. I was a registered customer and had rented from them before so maybe they trusted me!

How much the rental company will block on your credit card depends on the excess, it's often several thousand with the cowboys cheap companies, principally to force you take their insurance.

PommieBast

Does Ireland have anything like the UK's Section 75 protections?

Tippman24

I have one but now use it mainly for bills that i know are due. I put in about €50 each payday (paid fortnightly) and usually have enough in it to pay car/house insurance. Very handy in that respect. Debit Card for everyday stuff.

artanevilla

I use mine for most online transactions for security reasons, can do a chargeback if any fraud occurs etc.

Glaceon

https://www.boards.ie/discussion/comment/120440147#Comment_120440147

Same as. If a fraudulent transaction takes place on my debit card, I'm down money until the issue is resolved. So I only use the credit card online.

Juran

I was renting a car in Dublin airport around 3 years ago. While waiting in line, the couple before me (who were french) were refused the car they had booked as they did not have a credit card. They only had a Visa debit. The rental agent explained to them that the company needed to block €1,000 (something like that) on their card. If you block 1k on your card, its blocked, it cannot be spent. The rental company own that money until they release it back to your card at the end of the rental. This cannot be done with a debit card, even if you have 10 or 20k or more in your debit card account. I have my own excess insurance, I buy it annually to cover me in europe as i travel a lot for work and holidays. In every country, they still block anywhere from €800 to €1,500 on my car, depending on the car class / Size ... ie. SUV gets more blocked than a small car.

As per previous poster, i use my credit for online and abroad store purchases incase card details are stolen. Banks money, not mine.

I use my debit card for our grocery shopping and petrol station. Though they are as much risk as online or paying for stuff in say Asia or US for example. I should re-think my debit card habits.

iwillhtfu

Some of the replies are gas. The hotel credit card thing is very rare and the one hotel I know of that insists upon this is The Charleville Park Hotel and rightly so after how they got caught out. In reality I have stayed there several times and paid with a Debit card. As for checking your credit score by insisting on a credit card 🙈😂 Rental car is definitely a thing though but there are usually alternatives as mentioned they'll block a set amount on your Debit card.

OP only advantage I can see is for the odd loyalty discount and I use mine for monthly work expenses which can be considerable. It's also handy for holidays etc if pay run falls just after etc. It's also handy to have credit for the oh **** moments which befall everyone.

coylemj

I was renting a car in Dublin airport around 3 years ago. While waiting in line, the couple before me (who were french) were refused the car they had booked as they did not have a credit card. They only had a Visa debit. The rental agent explained to them that the company needed to block €1,000 (something like that) on their card. If you block 1k on your card, its blocked, it cannot be spent. The rental company own that money until they release it back to your card at the end of the rental. This cannot be done with a debit card, even if you have 10 or 20k or more in your debit card account.

I can't see how there was a problem. All the rental company has to do is take the excess amount from the debit card, hold on to the money and refund it when the car comes back undamaged. It sounds to me like they were playing hardball to force the tourists to buy their rip-off insurance. Or, maybe the people did not have enough money in the bank to cover the excess. It does illustrate the big difference between having a credit or debit card when it comes to car rental.

I am aware that some rental companies refuse to accept a debit card. But it begs the question - how did those people manage to book the car in the first place?

jaffa20

I've never had a credit card and managed so far. Never rented a car though.

Clareman

I used my credit card for everything, their payment protection is worth the €30 alone for me, a friend had their debit card scammed before and it was a nightmare for him, had his entire account cleared and had to get a bridging loan to get him through.

I pay mine off in total every month so instead of having a LOAD of transaction on my current account I can segment them easily, helps that I get €12 a month "reward" which more than cover the stamp duty.

Jim_Hodge

Got rid of mine over twenty years ago. Never had a situation here or in US or Europe where I needed one. That said I haven't hired a car.

blackbox

I feel much safer using the credit card for online purchases.

If money gets stolen, it's the credit card company that's out of pocket, not me.

jaffa20

https://www.boards.ie/discussion/comment/120440440#Comment_120440440

You have same protection with a visa debit card AFAIK.

https://www.boards.ie/discussion/comment/120439976#Comment_120439976

Never need a credit card to book a room. If presenting with a debit card theyve just charged the room rate upfront, with a credit card it just puts a hold on the amount.

same in the states in fact

Glaceon

https://www.boards.ie/discussion/comment/120440491#Comment_120440491

Yes but your bank account is down whatever amount of money until the claim is settled. At least with a credit card you don't have to worry about that.

Jim2007

https://www.boards.ie/discussion/comment/120440491#Comment_120440491

If the credit card company agrees with you, but the merchant gets to give input as well and it does not always go your way.

MickH503

https://www.boards.ie/discussion/comment/120440380#Comment_120440380

What card is that, if I can ask?

Clareman

https://www.boards.ie/discussion/comment/120440815#Comment_120440815

Avant Card Credit Cards with Cashback & Award Winning Rewards | Avant Money

I've just realised I've been with them over a decade, probably over from MBNA, my initial reason for joining was I had to pay a few big deposits when I was getting married and was able to available of interest free rate on transfers which was very handy at the time.

dotsman

https://www.boards.ie/discussion/comment/120440491#Comment_120440491

Debit cards may be advertised that way, but the reality is very different. The whole nature of a credit card is far safer.

Always use a Credit card for online or large purchases.

jjnaas

Travel is my one luxury/vice. Don't drink a drop etc twice a year I buy business class flights and a very nice 5 star hotel and the AIB daily debit card limit is never enough so I need a credit card. I usually rent a card when in the US too.

I suppose I could move to BOI where the daily debit card limit is 25K but I'm too lazy!

I also have the AIB platinum so the cashback covers the 30 euro and then the AerCard which gives me travel insurance and 2 free flights a year in Europe.

I was in the US on the way home when Thomas Cook went bust. There were a lot of British families in MCO hysterical. Their hotels would have blocked 100ish a day as a security deposit x 14 days so they had 1400 'frozen' that they couldn't use and no money until they got paid into the account again. They were in bits and waiting for the airline to sort them out which I'm sure it did and all was okay but no way would I travel abroad with a debit only unless I had a large reserve in the current account or in savings that could be immediately withdrawn. Preferably the second option because I'd be terrified of losing the debit card if i had thousands sitting in the current account.

Jim_Hodge

Whoa up there a sec!

https://www.boards.ie/discussion/comment/120444875#Comment_120444875

Care to explain? I've found Debit Card protection to be just as advertised.

ELM327

https://www.boards.ie/discussion/comment/120440156#Comment_120440156

That's not true. If you file a chargeback on a debit card you get provisional credit until the issue is resolved. This happened me last year. (Revolut issued Visa debit).

I had a 12k limit credit card, which I gradually maxed out. Once I cleared that off I cut it up and got rid. I then vowed never to have a credit card again as I'm too impulsive. I've rented cars, stayed in hotels etc without issue.

XsApollo

Credit card always for online purchases , deposits and large purchases and stuff like that.

any shenanigans from the service provider and you can always issue a chargeback from the Credit Card company.

Glaceon

https://www.boards.ie/discussion/comment/120447107#Comment_120447107

I'd rather not chance it. I've never once accrued interest on a credit card so I'm fine with having one.

ELM327

https://www.boards.ie/discussion/comment/120447157#Comment_120447157

That's the great thing, no one is going to force you, if you're able to (unlike me!) control your use of the card then more power to you! The only reason I commented at all is to show that debit cards have the same protections as credit cards. Chargeback rights.

iwillhtfu

https://www.boards.ie/discussion/comment/120447107#Comment_120447107

That's the main thing to watch with a credit card, running up bills like that on a credit card is madness. No offence meant Elm.

In my eyes a credit card should be used and balance cleared each month or so. A high limit is fine to cover for those moments where you're caught out. The one thing you do not want is credit card collections chasing you as they will absolutely hound you till you're fit to crack up.

Is there a place for them? Yes, they're handy access to instant credit. Are they a requirement these days? No, not at all.

Do they get some people into more financial trouble than they're worth? 100%

Clareman

A credit card should just be a way to pay for things, not a loan facility, it is 1 of the highest rate of interest of any credit facility, your limit shouldn't be a target, just something.

For me a credit card is a secure way of paying for stuff in a virtual world, if you don't think it's worth €30 a year for the convience, then don't have 1.

dotsman

https://www.boards.ie/discussion/comment/120447072#Comment_120447072

While we use them in pretty much a similar way, the reality is that, in the background, they are polar opposites (hence the "Debit" and "Credit" parts).

A Debit card is simply an electronic way of asking your bank to transfer money from one account to another (from your account to the retailer's account). And that's it. If there are any problems, the issue is between you and the retailer, not the bank (other than you hassling them and they, maybe refunding you out of goodwill). A credit card, on the other hand is derived from charge cards which, in turn are derived from "tabs". A credit card is an electronic way of asking your bank to buy you something and "stick it on your tab". It is the bank who buys the item. If there are any problems, the issue is between the bank and the retailer, not you.

While banks "offer" a similar dispute/protection policy, it is only an "offer of goodwill" and is down to how good the bank's customer service is. With a credit card, the bank is legally on the hook, not you. The other big difference is, with a debit card, the money leaves your account straight away, whereas with a credit card, the money doesn't leave your account for 4-8 weeks after (and longer if you desire). Not only does the "possession is nine tenths of the law" phrase apply here, but it also impacts the inconvenience of trying to get a refund.

Classic examples are where, during the Great Recession, lost of people had problems when buying furniture (where you typically purchase a sofa, but it doesn't get delivered for several months) and the company went out of business prior to delivery. People who paid with a debit card lost their money and were simply added to the list of creditors for the bust company. People who paid with a credit card simply had the charge removed from the credit card account and the bank got listed as a creditor. More recently, during the pandemic, people had similar problems with hotel and airline bookings as well as concert tickets etc. With a credit card, there was no problem. With a debit card, people were at the mercy of their banks customer service policy (which varies considerably depending on the circumstances).

You indicate you have had an experience and the bank did well by you. That's great. But the problem is - do you trust your bank will always do "right by you" when they don't necessarily have to?

There are other cons regarding using debit cards in lieu of credit cards. If a criminal was to get your debit card details, they could clear out your current account. Let's say that happened yesterday (Holy Thursday). While you may have contacted your bank and the card is now cancelled, your current account is empty until your bank investigates which won't even begin until Tuesday. Even if they do find in your favour, it could be the end of next week or even the week after before the money is refunded to you. in the meantime, you have no money and direct debits/standing orders going unpaid as well as no money to buy food/groceries etc. On the other hand, if your credit card is compromised, and the criminal uses it to buy things all the way up to you car limit, you are not really impacted unless you had planned to purchase some expensive item in the coming days. You ring your bank, they cancel the card, and later next week, the fraudulent charges are removed from the credit card account. But, in the meantime, your current account is still fine - you still have all the money at your disposal that you otherwise would have.

OrangeLavender

Great explanation. I used a credit card for almost every large purchase because of security, cashflow and rewards. One question - I always transfer money immediately after a purchase so my credit card balance is always 0 or sometimes even in the positive. Would that be an issue if I queried a charge as I would have technically already paid for it by transferring money to the card even if that month's bill hadn't arrived yet?

PommieBast

https://www.boards.ie/discussion/comment/120452416#Comment_120452416

Bit of a grey area that. Dunno about things in Ireland but under UK law (S.75 Consumer Credit Act 1974) they are very explicit about the credit card company being liable for supplier failure. It is a major reason that I used a UK credit card even when living in Ireland.

elperello

Credit card is a good standby for emergencies.

If you set up a direct debit to pay the full balance every month there is no danger of paying interest.

JTMan

https://www.boards.ie/discussion/comment/120452416#Comment_120452416

Why transfer immediately after purchase? Your credit card provider will give you 30-60 days free credit. Just pay via direct debit so you don't forget.

As to whether credit cards are worth it ... I have used a credit card for the last 20 years and paid it off each month. I much prefer a credit card over a debit card. AIB give me 0.5% Cashback via Platinum Card on purchases over 5k per annum, I only have you deal with one payment per month rather than constant amounts going out with debit cards and I pay off in full each month via direct debit. If you are disciplined then a credit card is worth it.

OrangeLavender

@JTMan I got into the habit of transferring money to my card regularly because I like to know exactly how much of my own money I have left at any given time during the month without having to do mental gymnastics - my AIB platinum takes a good few days for the balance to update. I agree that the cashback is a nice little bonus but the banks obviously rely on a proportion of people not paying off in full. I also find cards handy for work expenses. It's nice just to be able to throw them on the card knowing I'll be claiming back in a couple of weeks.