Money, passports and (p) illettes used to be a good rule of thumb when traveling. Axel Guran of MoneyEnergy Credit thinks the new rule must be that you also bring your credit card.
Here are his eight reasons why:
1. Extra backup
Have you ever been in a foreign city and experienced that your card was swallowed by the ATM? Or not getting paid in a store because your card doesn’t work?
Then it is good to have several cards to resort to. One rule of thumb should be that you use the credit card as the motherboard on the trip. If it gets lost, you always have your usual card to resort to, says Guran.
2. The bank’s money – not yours
Let’s face it. Wallets may be lost on the holiday trip. Cards may be stolen or card data may be copied. If your card gets into the hands of the wrong people, the account can quickly run out.
If you have used a regular credit card that is linked to your payroll account, your money will be lost. What many people do not know is that if you use a credit card instead, the bank’s money is stolen. Then you don’t have to lose your own accounts, says Axel Guran.
The assumption is that you have not acted negligently and that you report the card stolen as soon as you discover it is gone.
3. Extra travel insurance
Did you know that if you pay half of your trip with a credit card, you get travel and cancellation insurance on the purchase? The insurance covers your loss if you fall ill or stolen valuables during the holidays. It also applies to delays in connection with flights.
It provides a good supplemental coverage which can be good to have if the accident should be out. Travel insurance covers trips up to 90 days, while regular travel insurance is usually limited to 45 days per trip, Guran says.
4. Full control
Your credit card has the same PIN as your other local bank cards. Therefore, there is no more to remember than otherwise. In addition, the credit card gives you a unique opportunity to control your costs along the way.
You can log into the mobile bank at any time and see what you have used the card for. It will also be easier to see what the trip cost you afterwards. It gives you good overview and control, says Axel Guran.
5. Access to own money
Did you know that hotels and car rental companies often reserve larger sums than the agreed price you pay? If you use a regular credit card, you may suddenly have less money to deal with than you had planned.
If you rent a car, the company often takes into account that you can expose the car to an injury. The same goes for a hotel. This will freeze the money in your account, which can be very inconvenient. However, if you use a credit card, you have all your money available at all times, Guran says.
6. Security for unforeseen costs
A lot can happen on a trip. You may need to stay in a hotel while you were really planning to lie in a tent. And should your luggage be lost, you may suddenly have to pay for more than you actually have budget for. A credit card therefore also acts as an extra security that it can be good to resort to if something unforeseen happens, Guran believes.
7. Secured against ID theft
If you are a frequent user of the credit card, you have an additional insurance that many may not know. If you are exposed to ID theft, you can receive up to USD 50,000 in legal assistance.
The assumption is that you have used the card or have interest-bearing credit on it, explains Guran.
If you are rarely abroad, an extra security can also be that you place a regional lock on it as long as you are in Norway. This means that you can choose to block use in terminals other than where you have approved the use.
You choose which regions you want to block for use, but remember that you will unblock if you are going on a trip. Tedious to stand at an airport at a stopover and not be able to use their card, says Axel Guran.
8. Free to own and to use
And last but not least. Did you know that owning or using your credit card costs nothing? In addition, you will receive up to 45 days of payment deferral after using it.
You therefore have plenty of time to pay the bill when you are back home. And you can sit down in peace and go through your transactions before you pay, says Axel Guran.
Which credit card is right for you?