Hello OzB brains trust,
I’m looking at planning some overseas travel. I don’t have a credit card and don’t intend on getting one (am about to take on a mortgage) - are there any debit cards left that still provide complimentary travel insurance if you pay for the travel with the card?
I’m with Macquarie who I’m sure had it in the past, but can’t find any info on their website now.
Have done some googling but can’t seem to find any relevant or current material.
Thanks for your advise.
Jack :)
Thanks mate - I did find this document when I searched google but couldn’t find it on the Macquarie page itself. Can always call and confirm.
In any case, I was hoping for a little more “coverage” - maybe my expectations are too high!
https://www.macquarie.com.au/everyday-banking/transaction-ac…
under macquarie platinum benefits. no other card has this. macquarie can afford it because they don't have eftpos for their cards so they make "more" money for every transaction
Found it - thanks :)
This looks like another option… also this…
I may have answered my own question… unless anyone else has suggestions?
Edit: Looks like CBA limits coverage to 21 days which won’t work for me but the 2 free lounge passes is a nice touch.
NAB might work as I’ll be spending more than $500 on the travel with the card, and also seems to cover Covid. Hmm!
Just make sure you don't use the wrong fuel in the hire car
Beware when travelling there are some things you may not be able to do without a credit card (book a hotel, rent a car), so consider your lender will likely bundle one with your mortgage
Good point. Haven’t had any issues in the past with either, but I’ve only travelled SEA. This trip will be Europe (predominately UK). Definitely something to consider. Thanks
Are any of these bundled card insurances worth it compared to a real insurance policy especially if you have a card fee added to your travel? Bundled insurance that covers car hire excesses might be good for paying for your car hire though. Sorry to be a kill joy but maybe the money you are planning for the trip should be saved for the mortgage? If things are so tight you're not getting a credit card so as to maximise your mortgage I have to question whether you can afford the trip.
I’m not getting a credit card because I don’t need a credit card. Just don’t want to have to go through the pre-approval process again.
Appreciate your concern but I’m well within my means, thank you.
Just take a close look at the insurance policy that comes with the card. I suspect you will probably be better off paying for a separate policy and using the lowest cost payment method for your travel. Travelling on a debit card is workable but you'll have to top up your account more than you'd like to take account of holds. At least Macquarie's transaction account will pay interest on those held funds. Paying in advance or lodging a security deposit might be an alternative option in some places if the debit card is not accepted.
Get a credit card and cancel it after the trip. You will have issues in some places using a foreign debit card (I have first hand experience with car rentals in the UK)
This is looking to be the best option. I don’t plan to hire a car or do anything crazy but it’s a good suggestion.
OP, get yourself a credit card with a lower limit. Its actually super handy and has its benefits. It'll also force you to be better at managing money, etc. Plus most mortgage banks will offer a complementary credit card alongside so opt for it (most will also waive the fee).
It is something I’ve contemplated, but it’s never been something I’ve needed. I don’t mean to toot my own horn but I’m great with managing my finances… which is probably why I’ve never seen a CC as necessary.
The complimentary insurances in this instance are definitely something that makes it worth considering.
Surprised how many people are on the “just get a credit card” bandwagon! Haha
Well done for not wasting money on credit card interest, but are you earning reward points from all of your spending?
Single 29 year old male, earning well below 100k/yr in extreme saving mode - without churning I don’t think I’m missing much from a points perspective. If I really wanted to save a bit extra, I should probably just jump to the HSBC transaction account with 2% back on tap and pay.
I resisted getting a credit card for a long time probably because I didn't want to disclose my financials and then I realised I was subsidising those paying with credit cards at businesses that didn't charge a fee for card use as well as unnecessarily losing interest by not taking advantage of interest free days and got over it. Reward points were the furtherest on my mind until interest rates dropped so low the pathetic rewards points on my no annual fee card became worth more. One thing I like about debit cards though is that you don't need to remember to pay them off or face high interest rates and late payment penalties but that's easily solved if you're into direct debit payment of your account - assuming you keep sufficient funds in there.
As others have said a credit card is useful when you're travelling. One thing most businesses allow is for you to have the hold placed on one card and pay your bill with another payment method. You can use your own funds for holds but why not use someone else's money? If you have a card that pays interest on transaction accounts such as the Macquarie card at least your loss of interest is minimised as you're only losing the difference on interest between that account and a higher earning savings account.
Debit cards have their uses other than sometimes avoid fees. I once deliberately used a debit card with a small balance to limit the ridiculous hold a hotel wanted to place on my card. They wanted to hold some ridiculous amount per day for hotel services x the number of days I would be staying there. I told them to just place a hold for one day and clean out the mini bar if they wanted (they didn't). Note the accommodation costs had already been prepaid. I don't know how flexible hotels are these days with holds like that but the point is useless holds which can linger for a while limit your credit and that's especially annoying on a transaction account that doesn't pay interest.
Get a Macquarie transaction account by all means whether or not you get a credit card suitable for travel but do compare any free 1 insurance with proper paid insurance policies. I assume there is a travel insurance thread on here somewhere.
It's not free if you have a pay a card payment surcharge. ↩
A very well thought out reply. Thank you :)
https://www.macquarie.com.au/assets/bfs/documents/personal-d…