Credit Card-less in Europe

One question is: How difficult would it be to reserve accomodations that do not require a credit card to hold the reservation? They exist but will this be a significant hassle?

We used to make heavy use of credit cards but over the last few years we have shifted mostly to cash especially since you generally can get up to 5% discount for using cash. We still carry a credit card for backup purposes but most use cash --- Cash is King !!!

It's "doable", but you need to have A LOT of money in your checking account. When you check-in to hotels or rent cars, a hold will be placed on several hundred dollars until you check-out, and or return your car. Problem is that this "hold" will not be released for several days even though the money you owe the merchant has been deducted from the account. When you use a regular credit card this hold is only taken from your credit limit.

You should be fine, but a few comments

• You might want to check the dates of your travel because October(early) is when kids across Europe have halfterm break, so hotels/hostels can be quite full then.

• You should make sure that you will be able to withdraw enough cash each day to cover your needs - what's fine in the US may come up short with the exchange rate here.

*Do your research carefully because even hostels may cost more here - the most expensive places are Germany, Switz, UK and Scandinavia. Make sure you will be able to have enough cash each day to cover necessities as well as having a reserve in case of emergencies (i.e. medical ).

• If you use a debit card, be aware that it will work as an ATM card, but won't work in most stores because the technology is different over here.

• Have two ATM cards and some alternative way of getting in money in case ATM machines are down/card stolen, damaged etc. You do not want to carry large amounts of cash around - not safe.

Couple of good points guys. Myself, I wouldn't plan on renting any cars or making reservations at hotels. Im planning on staying in youth hostels and I figure traveling in October and November, reservations shouldn't be required as compared to summer peak travel season. (I think/hope)

My goal would be to spend only the money that I saved for the trip. I would really rather not have to pay back credit card bills after my trip. Hence my reason for saving up for a year for Europe.

I figure if I run into a place that doesn't accept cash, I just move on to a business that will.

My wife and I have gone to Europe each of the last three years and use only VISA-logoed debit cards. Now, we have not rented an automobile, so we have not actually "charged" anything. We are thinking of going to Germany in the Spring and renting an auto. For that, we will use an AMEX card (our only credit card)for one reason only - to purchase their rental car insurance that you only pay for during the life of the rental.

Other than that, I have used our debit cards to hold hotel reservations. I have done this many times and have never had a business put a "hold" on the money. I may have been lucky, but that is my experience.

It sounds to me, Mike, that a debit card will serve you well.

The hold occurs when you check into the hotel, not when you make the reservation. Most people aren't aware it occurs, that is until they want to withdraw cash some cash from an ATM, and the get an "insufficient funds" message. Like I said if you have a lot of money in your checking account you won't have any problems, and won't even notice it. If you happen use the Internet bank service from your financial institution, you can see it in action. Right after you rent a car or check into a hotel with your debit/ATM/check card you will see you will see your "account balance total" and "available balance total". The hold is deducted from the "available balance"' it should be several hundred dollars less than you "account balance".

Michael, I don't doubt that you are technically correct, but we have never used our debit card at checkin. Our normal response is that we will be paying in cash. Generally after checkin and depositing our luggage and checking out the room, i will come back and pay a couple days in cash if we are staying longer than couple of days. Otherwise I generally prepay. Never had a problem with that -- except maybe once. Last year we checked into a Rome hotel in the morning, prepaid three days that afternoon and walked away without a receipt. Five minutes later realized I had forgotten the receipt return but went back. No problem. The next evening we are returning to the hotel and a night clerk inquired about our account. He indicated it was unpaid. I immediately gave him the receipt followed by about five minutes of paper shuffling, computer checks, etc., and finally said OK and thank you. Always wondered if something else was going on.

The first time I was in Europe, on a semester study abroad, I took two cards: a debit card (with no credit line) and a credit card. I used the debit card for everything, but mostly ATMs. I think I booked a hotel online using the credit card just to protect myself since I wasn't using that card, and it would be easier for my dear parents to watch for fraud while they managed my money for me. So, you don't NEED a credit card, but you need something plastic with a visa logo on it. Good luck!

We used only ATM's during our 8 weeks and other trips. We took our credit cards in cases of an emergency.

We had to secure some reservations with credit cards and paid cash when we arrived.

I like to come home from a trip regardless of where we were knowing it is already paid for.

I've always used debit cards in Europe, but recently read something troubling in the "National Geographic Traveler" Smart Traveler column. Evolving global standards for customer I.D. make swiping & signing considered "quaint" outside the U.S. Banks in Europe (especially the UK) issue "smart cards" with an embedded chip, but U.S. issued cards don't work on the new systems & there's no plan to introduce those standards. I guess parking meters, train ticket vending machines & self-service gas stations can be a real problem. They say to make sure & avoid machines when you can, deal with a real person (ask for the mgr. if a waiter won't take your card) & make sure to use Global card networks when you DO need to go to the ATM.
Try to find yourself a copy of the current issue of "Natl. Geo. Traveler and look it up on page 30
(sorry, couldn't find it online).

Believe it or not, my first trip to Europe a few years ago was ALL CASH. I have no credit cards...and hopefully never will.

A few months ago I took a stack of Euros and a debit card. I used the debit card to hold hotel rooms and to withdraw cash from atms.

Having a credit card is a luxury that most people don't need. I save for my trips instead of working to pay them off.

Good luck!

I had a problem in Belgium and France using a debit card in certain gas stations. When the debit card didn't work, the credit card did.

I like to carry one of each.

Ask about monetary change transaction fees.

Of course: Notify all banks as to your upcoming travel and keep the 800 #'s handy in case of loss.

Gwen, I think it is admiral for a young girl
to be able to save money, so many spend it all.
If you should ever decide to get a cc, you can get
one that gives you mileage. You would have
the willpower to pay the balance each month which
is a must to make it work. We have taken many
trips this way.
Citibank is giving 40,000 miles over 3 yrs to open
an account. that gives you a free trip to Europe.
Many other perks with FF miles.
Just a suggestion.

Id recommened taking one credicard just for emegencies as other posted. Sometimes a debit may not do it. Ive alyways traveled with both, using debit just at ATM mostly (and CC for larger payments). I fully understand your wanting to use saved cash and no CC bill when you get home. But you could always pay online enroute too. My main concern is saftey & convenience. If you have a problem with ATM and cash-heavy-checking account it could take a while to resolve any lost funds. CC would buy you lots of time/insurance. But if you ONLY use ATM card for cash this may no be an issue. I just like the security blanket of having a 10k+ credit line handy for extreme cases if ever (but hopefully never) needed! Personal preference. The 32 year old that mentioned they never had/want a Credit card - very admirable - since so many people in US have too much debt. But how will you get a good credit score to buy a house/car in future. A neccesity today for good deals - unless cash is used too!

Tom- I'm actually 24, I've posted 32 times...

As for the credit cards...here goes: I have absolutely no desire to own a home. If I ever come to a point in my life where I want one (doubtless, as I will not have children and I travel too much to find it useful), I will work hard and save the money. And yes, pay with cash.

And I don't drive, therefore I have no need to buy a car. I use public transportation, a bike and my feet.

It's strange, but it works for me. All I'm saying really is that one DOES NOT need a credit card to travel and I'm the perfect example.

Obviously its your choice if you want a credit card or not; and there is nothing wrong with not having one. But having a CC doesn't necessarily mean you are going to be in debt for the rest of your life. I've been using credit cards for over 20 years, have always paid off the balance each month(CC companies call people like me "deadbeats" :)), and have never traveled unless I have the cash to pay it off before hand. Personally I would be nervous handling all that cash as I travel. I find CCs simply make travel easier and more convenient, and I can get extra frequent flier miles.

My husband and I are just like you---we are debt free without any creditcards! We went to Paris for 2 weeks last year with just two debit cards. We had no problems at all. We did notify our banks before going that we would be traveling. We did have Euros--that we got through our bank before leaving. That was the easiest thing!

Gwen, Juli's idea isn't bad. You are obviously very disciplined (wish I had been at your age). If you did get a card with FF points you could take advantage of those and pay off the card at the end of each month as Michael does. The only other issue is fees associated with taking out the card and any fees associated with getting the FF points. I know here you pay extra to be part of the scheme to get FF points and for me it's not worth it.

One advantage of a credit card over a debit card is the ability to contest a charge on the credit card. I have been overcharged for a rental card and double billed on a hotel room. With a credit card you are able to challenge a charge but with a debit card, it is difficult if not impossible to challenge a charge.

One advantage of a credit card over a debit card is the ability to contest a charge on the credit card. I have been overcharged for a rental car and double billed on a hotel room. With a credit card you are able to challenge a charge but with a debit card, it is difficult if not impossible to challenge a charge.

I agree with the other posters about the CC-s - and Gwen - many props and congrats to taking such a strong stand on financial responsibility - you make a great example for other younger adults! Id just say as others - that CC's CAN be used to YOUR Advantage - as you have the responsibility to pay off each month if you used it at all and pay them nothing. Getting miles or cash back is just a great bonus to help you travel even more economically. The added benefits are a strong credit history and the support of the CC-company if something goes wrong. These bonuses are essentially free if you maintain your zero-paid-off each month balance mentality like you have with cash. But these are just personal ideas from others. Cash is king almost everywhere else in the world. But some day that high credit score may come in handy for you - as youd obviously have the skills to keep it high! An open mind offers endless opportunities! - anyways - good job and happy travels!

Done 5 recent trips to Europe with only ATM card. Some travel was solo so it was just me booking hotels, buying flights, train tickets, etc. Only issue was the last trip in Portugal where it turned out the ATMs wouldn't take my card. I posted about that elsewhere on this site. Others seemed to have the same issue with WaMu cards in Portugal. In any case, it has worked fine for me and I would travel that way again.