Martin Lewis set out some of his top picks
Martin Lewis has shared some top tips for people heading away on holiday. He delivered the crucial advice during his BBC podcast.
During a question and answer edition of the podcast, an enquiry arrived from a mother whose 18-year-old son is heading off on a lads’ getaway. She enquired about the most suitable spending card for him to bring along, or whether she ought to provide him with some cash.
She clarified she was reluctant to give him a credit card as she was unsure he would be responsible with his spending. However, the accommodation where he was staying required a £300 credit card deposit.
In his response, Mr Lewis said his preferred choice for cards she could consider was Chase. He clarified: “Technically you have to open a bank account to get it, but you don’t need to switch bank account.
‘Near-perfect rate’
“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 option he recommended was the Revolut pre-payment card, which allows you to load a predetermined amount onto the card. Turning to the question of credit card deposits for accommodation, Mr Lewis said this is a common requirement, often demanded when hiring a vehicle overseas as well.
He explained that securing a credit card deposit could prove challenging for an 18-year-old, as they may struggle to pass a credit check. Mr Lewis proposed that perhaps the mother could liaise directly with the company and cover the deposit on her son’s behalf.
Big danger
Mr Lewis also issued a further warning for younger 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.”
