How to travel without credit cards?

[isabella]

I always rent with Alamo and always use my debit card. They do not put an excess amount on hold. For example your estimated rental amount is $300 (the quote when you made the reservation). When you pick up the car, you will see a "pending" withdraw to your debit card for that amount. When you return the car the pending is changed to an actual debit. It doesn't tie up your money because you were going to use tha $300 to pay for the car anyway. I look at it as paying for the rental in advance, Hope this helps.

[Bell30656]

I've used Enterprise several times and have been able to leave a cash deposit in lieu of using a credit card.

[HappyCatNC]

We have our regular checking and savings, and recently set up a separate checking just for travel. This way if something does go haywire, at least our bills and such will not be caught up in it.

Prepaid cards do not work for travel (at least not for hotel, car). They do not have your name on them, are treated like gift cards, and for whatever reason many car rental/hotel websites specifically state they do not take them.

I am still researching, and have yet to find conclusive information, about using secured credit cards. On paper, they look like a great post-bk tool. However, few places seem to offer them anymore, and the ones I do find look sketchy, have horrid fees, and balance options too low to be useful for traveling.

You would think in today's climate that secured credit cards would be a growth market, rather than an endangered species.

[viking64]

There's some flexibility in all of that.

AAA issues a pre-paid Travel Visa card, which will be in your name (though it won't show in the card). You input the information for an online purchase just as you would for a credit card. I used it for hotel payments and incidental charges last summer and fall. In once case, I had the hotel run the full cost through up front when I checked in, so the card was only used for incidentals and they waived the hold. I realize this may vary by chain. It wouldn't work for a car rental.

Credit Unions will often offer a secured visa or mastercard with low or no fees. For instance, Digital Credit Union has an excellent product. The credit limit is based on what you secure it with. Apparently it's no ta guaranteed approval, but it something. Orchard has a product that isn't outlandish, but it's not as good a deal as a credit union.

[flyinbroke]

Had no problems with Alamo for using debit. I have used it in hotels too. Beware of the holds; this should be the only issue.

[Penny Less]

I've used a PayPal debit card to buy plane tickets before. It's nice because there's no fees.

[ozarkmiss]

I'm reading on agency sites now that a return trip air ticket is required. This puts us in a pickle. We need a rental car for the holidays, but are not flying anywhere. Have the cash for a deposit. Not sure what to do. Any experience with this?

[RichM]

I've also used the PayPal debit card for travel, and never have had any problems.

There are a lot more secured cards out there than one would think. Many credit unions don't "officially" offer them, but will set you up with one if you ask. They just block off the credit limit amount from your share (savings) account to secure the card.

There are also some banks and credit unions that aggressively market these cards. I applied for one from a bank that advertises on some of my sites, have been approved (which is automatic -- there is no credit check), and am awaiting the actual card. Yes, there was a $75.00 processing fee, but hey, nothing in life is perfect. (Starting with applications submitted on January 3, the processing fee will be going away in favor of a $50.00 annual fee. Again, not a perfect thing, but not the end of the world, either.)

I also took out a membership in a credit union in California that markets secured cards and will apply for the card after the holidays, most likely. I'm not sure how I qualified for membership, nor was the rep I spoke to. Possibly I qualified on the basis of my profession, or possibly because of a business relationship with a certain computer hardware manufacturer.

One of the nice things about dealing with credit unions (other than that they're not banks) is that I can do all my transactions from my "home" credit union in Queens, NYC, regardless of where the CU is located. Most credit unions belong to an international network known as "CU Service Centers" and are happy to handle each others' transactions.

One precaution about CU secured cards: Not all credit unions routinely report to CRAs, so if re-establishing credit is your reason for wanting a secured card, make sure to ask the CU if they report monthly before applying.

In my own case, my reason for wanting secured cards has nothing to do with the difficulty of getting an unsecured card. I'm self-employed, which means I'm ineligible for unemployment, state disability insurance, and so forth. If I don't work, I don't get paid. Period. So I like the idea of having the cards backed by cash. If I get sick or hurt and can't work, or if business just sucks more than it usually does for a while, I can always request that the cards be closed and paid off by the deposit. In most cases (especially with credit unions), this can be done with a "Closed by Consumer Request - Paid as Agreed" entry on your credit report if you explain the situation to the issuer.

-Rich