We have already established I am somewhat of an anti-cash freak, so not surprisingly here is a post with money-savvy tips about credit cards on holidays.
We all know we should keep them in a safe place, we shouldn't share our PIN code and we should cut them in half before discarding an expired card. But we forget often simple things in our everyday use of our credit cards - simple tips that are especially important when travelling and distracted by the nicer things in life :-)
The one and only
Your credit card if yours and yours alone. You should not lend it to anyone, not even family and friends. Ideally no one should ever see the whole number on your card (mind you, it's long enough for you to put a thumb on top of it!), and definitely they should never get a chance to note it down together with the expiration date and the security code on the back of the card (the CVV number). Be careful when typing these on a shared computer or giving them over the phone. And you should be the only person wielding your credit card so never lose sight of it! Nowadays most retailers (especially restaurants) have portable terminals to come to you if you wish to pay by card.
Mind the PIN
No one should know your PIN code, the same way you shouldn't have your PIN code noted anywhere - least of all in your wallet next to your card. How often have I seen people in the supermarket line with a post-it glued to the back of their card with their personal 4-digit number... that's calling for trouble! As soon as you receive your card change the PIN number to a personal one only you know (this you can typically do at an ATM of your bank) and if you absolutely must write it down, do so hiding it in another piece of information, like a fake telephone number or address.
All eggs in one basket?
Diversification to avoid risk is one of the best known economic maxims. And it applies here too. Do not carry all your credit cards together while travelling. From the moment you pack until the moment you unpack, there are many places you can distribute them - wallet, rucksack, mobile cover, luggage, sunglasses case...
Keep track of things
Paying with a credit card instead of cash has the risk of losing sight of what we're spending. Especially on holidays, when our spending patterns change and aren't planned. Nowadays it's easy to keep track of things logging into your mobile banking app from time to time, even from abroad. The ING Mobile app it's quite convenient as it only requires a password once your mobile device (smartphone or tablet) has been identified. Not only will it help you keep an eye on your budget, it can help avoid uncomfortable situations of refused cards at the most critical moment.
Pay smart
When travelling you have three choices: exchange cash at the airport, withdraw at a foreign ATM or pay with your credit card. Believe it or not, the latter is often the cheapest of all three! Plus it often comes with guarantees and insurance. Check the applicable tarifs of your bank and the extras of your card before deciding - you might be surprised of what you've been missing.
More tips? Check out our Security Center for more tips about money (cash, plastic or digital) or subscribe to MyMoney.lu for more money-savvy insights!
And above all, have a great summer!
