Martin Lewis set out some of his top picks
Martin Lewis has issued some tips about holiday spending(Image: ITV)
Consumer expert Martin Lewis has shared some tips for your holiday spending while you are abroad. He shared the key advice during his BBC podcast.
During a question and answer edition of the podcast, a query came in from a mum whose 18-year-old son is heading off on a lads’ holiday. She asked what the best spending card would be for him to take along, or whether she should simply give him cash instead. She explained that she was reluctant to give him a credit card as she wasn’t confident he would use it responsibly. However, the accommodation where he was staying required a £300 credit card deposit.
Top recommendation
In response, Mr Lewis said his top recommendation for cards she could consider was Chase. He explained: “Technically you have to open a bank account to get it, but you don’t need to switch bank account.
“The Chase bank account is available for anyone aged 18 or older. It’s openable via an app. So effectively you can open this up, you put money in it that you want to spend and it gives you the same near-perfect rate that the bank gets when you spend, because it doesn’t add a non-sterling exchange rate fee.
“So I think that’s a really simple option. It’s a debit card, it doesn’t have an overdraft facility. It doesn’t do a hard credit check, it just does an ID check and it doesn’t affect his credit-worthiness.”
Another card he recommended was the Revolut pre-payment card, where you load the card with the amount you wish to spend. Regarding the credit card deposit for accommodation, Mr Lewis said this is a common requirement, frequently being necessary when hiring a car abroad too.
He explained that if a deposit needs to be paid on a credit card, this could prove tricky for an 18 year old as they may not pass the credit check. Mr Lewis suggested that perhaps the mum could contact the company and pay the deposit on her son’s behalf.
Big danger
Mr Lewis issued an additional warning for young holidaymakers. He said: “One of the biggest dangers for finances and young people is drinking. The problem when we drink is we lose all our sense of control.
“So it’s very difficult what you advise young people. Do you tell them take cash out so you’ve only got the amount you can spend on that day. That keeps you to a budget.
“But then it does wrong, they haven’t got any money left and they can’t get back to where they need to go, which can be dangerous.
“Or do you have a card that has an unlimited spending facility on it. It’s quite a difficult one at that age. The best thing is to be sensible and not drink too much.”