The common holiday mistake millions of Brits face making when booking a trip abroad

MILLIONS of Brits could be putting their holiday plans at risk depending on the card they use to pay for it, following a warning from experts.

When booking flights or a package holiday, families are advised that using a credit card could offer much more protection.

A study conducted by money.co.uk found that around 34million adults in the UK have at least one credit card – meaning millions in the UK either are unable to or have chosen not to have one.

But under Section 75, any purchases made on a credit card between £100 and £30,000 are covered, which includes holiday cancellations.

For example, if an airline or tour operator goes into administration, this means your money would be protected.

If your flight is cancelled and the airline fails to give a refund, this could also offer additional safety for your money.

It comes after a number of airlines went into administration last year, including Australian Bonza, Estonia’s Nordica and Albania‘s Albawings.

Anna-Marie Duthie, a travel insurance expert at Defaqto, said that some travel insurance products wouldn’t protect against some of these risks.

She said: “Even though airline failure is rare in comparison to other risks when travelling, when it does happen, the impact is enormous. 

“In the event of an airline failing, consumers can potentially recover costs from the ticket provider, the package agent or through Section 75 under their credit card, if paid using this method.

“That’s why it’s a good idea to book flights or holidays using a credit card, and then to pay off your balance before you’re charged interest if you can.”

The Sun’s Head of Travel Lisa Minot backed this up, saying that having even just one credit card for a family is a good idea when going on holiday.

She explained: “Booking your trip via a credit card offers you valuable protection should anything happen before or during your break.

“Section 75 protection applies even if you only partly pay, for example a deposit for a holiday.

“Section 75 not only covers the cost of your flights if an airline goes bust or the cost of a holiday if the holiday company goes bust, but it also covers any additional expenses or consequential losses, for example buying more expensive flights to get home if your airline fails.

“It also covers you if a company fails to supply goods or services or if the goods or services are not up to standard.”

Some hotels in holiday destinations may also require a credit card when checking in.

Especially common in destinations across America, expensive resorts will ask for a credit card ‘hold’ fee for and incidentals and damages.

This can range between $50-$200 a night in the US, which is authorised when using a credit card, and released on checking out.

But if you use a debit card, this can be taken as a fee straight away, and take as long as a month to return – leaving you out of pocket.

Lisa added: “Having a credit card with a reasonable, clear amount of funds on it is also a good idea once you are away.

“Always pay for car hire deposits via a credit card if possible as they will often put a hold on the funds – and take a while to release them – which could impact your spending if you have paid by debit card.

“The same applies to hotels or cruise lines who may also put a daily hold on a certain amount of money to cover anything you would be spending with them during your stay, regardless of whether you spend that amount or not.”

Of course, Brits are urged not to research credit cards before applying to find 0% deals.

And if they do take out credit they should always pay off the balance in full.

Here are the best credit cards to choose if you are trying to shift your debt this year.

And another travel expert has revealed a common hotel credit card scam that could catch you out.