Experts share warning against booking your holidays with a debit card
When you're booking a holiday, there are now plenty of ways you can pay for your trip.
Some sites even offer buy now, pay later services, so you can book a huge holiday and pay it off in instalments.
However, according to financial experts, there are some payment methods to avoid.
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How do you pay for your flights? Getty
Credit cards should be your number-one best friend when you're booking a holiday.
Use it to pay for flights, hotels, tours, and any other bookings where you're paying up front.
Paying with a credit card offers you way more protection than if you use a debit card.
If the airline or tour company ends up going bankrupt, you're much more likely to be able to get that money back.
"If something goes wrong and you don't get to take the trip, you may be able to dispute the transaction and get your card issuer to reverse it through a chargeback," Angus Kidman, travel expert at Finder, tells 9Travel.
Paying by credit card can often leave you more protected. Getty
Your credit card company will give you an added layer of protection in case the airline goes bankrupt, your flight gets cancelled, or other issues that may arise before your travel date.
Angus points out that this isn't always a fool-proof method, but should give you some extra peace of mind, if you can't get a refund from the airline or claim on your travel insurance.
Aussie airline Bonza went into voluntary administration last year, leaving tens of thousands of travellers with no bookings and no refunds.
Some credit cards offer free insurance. Getty
Angus points out that some cards offer travel insurance for overseas travel that's booked using the card - another bonus that comes with using a credit card.
He also says that travel insurance is a lot more reliable for getting your money back if something goes wrong.
He travels with both a credit card and a debit card. "That way, if there's an issue with my credit card and it has to be frozen or reissued, I've still got a way to pay."
Some hotels or car rental companies may require you to present a credit card upon check-in, which can be used to take a deposit.
If you give them a debit card, you could be out hundreds of dollars while you wait for the funds to be returned to your account - another reason why you should always travel with a credit card.
Of course, if you want to withdraw cash from an ATM while travelling, you'll need a debit card or a dedicated travel money card.
Some cards allow you to rack up points as you pay. Expedia
Another great reason to use credit cards is to rack up travel rewards. Many frequent flyer programs have dedicated credit cards that will give you one point for each dollar earned.
If you're forking over thousands of dollars for flights and accommodation, you may as well be rewarded for it!
One final tip from Angus: "Let your bank know when you're planning to travel, so that any shopping or eating out you do on holiday doesn't get flagged as suspicious. Most let you do this online."
