Newbie(ish) Question: Advantages of OBC?

[3Fluffies]

Although there are a lot of threads on OBC, I'm a little lost on the threshold issue: is there a particular advantage to pre-purchasing OBC versus just accruing my on board expenditures during the cruise and then paying them off, since NCL uses a cashless system?

 

My cruise is in about 100 days, and I've been setting a little money aside each week for goodies and goofing off, just earmarking it in my bank account. But now I'm wondering, should I purchase OBC with it when I don't know ultimately what I might buy on board?

 

Can any experienced cruisers offer some guidance? Thanks in advance!

[GUT2407]

Although there are a lot of threads on OBC, I'm a little lost on the threshold issue: is there a particular advantage to pre-purchasing OBC versus just accruing my on board expenditures during the cruise and then paying them off, since NCL uses a cashless system?

 

My cruise is in about 100 days, and I've been setting a little money aside each week for goodies and goofing off, just earmarking it in my bank account. But now I'm wondering, should I purchase OBC with it when I don't know ultimately what I might buy on board?

 

Can any experienced cruisers offer some guidance? Thanks in advance!

 

You MAY get an advantage in exchange rates if that's applicable.

 

But for most the advantage is budgeting.

[khaide612]

Keep doing what you are doing. :)

 

There are benefits to buying OBC if you are dealing with foreign currency - exchange rates.

 

Some people like to have the OBC so they don't have a large bill at the end of the cruise - usually seasoned cruisers who have an idea of what they will spend. If you are setting aside money to spend onboard and don't know what you will even charge to your onboard account, you are better off just paying as you go and not having to worry about spending OBC or waiting for a refund check which can take weeks.

[casofilia]

As you are American and presumably paid for the cruise in USD there will be no financial benefit.

So get any interest from your bank till the last possible moment.

The only benefit is so that you don't get a hefty bill on to your credit card at the end of the cruise.

If you have any left over OBC you will get it sent as a cheque to your home address after the cruise (2-8 weeks).

If you don't want the hassles of that "pay as you go". Put down $300 when you board. Then keep an eye on your on board balance and "top up" as need be. If you do it right and have less than $50 at the end they will give you that back in cash.

 

Mike

[marelind]

I agree that as a newer cruiser you have no idea what amount you are likely to spend on board, so I think your plan of setting money aside for after the cruise makes sense. Now that I know that I spend a LOT on a cruise, I like to save up my credit card points and use them to pre-purchase OBC. The reason for this is I can maximize the amount I get for the points.

[callmebetty]

We purchase OBC ahead of time, but with the ability to prepay DSC and the drink perk, we really won't need much this time around. We do spend money in the casino and there is a 3% fee for each transaction so we do the deposit and check the account game, keeping our money free to take to the islands and whatnot.

Hope that helps a little...

[3Fluffies]

Correct, I'm American, so the exchange rate advantages wouldn't apply to me.

 

Another question: What does DSC stand for? (No doubt I'll slap my forehead as soon as I find out.)

[bruadhin]

To be blunt and ignoring currency exchange rates, the advantage is budgeting.

 

If a credit card is a weapon of mass destruction in your hands, then pre-paid OBC or cash deposit is your friend. If you have set aside so much for onboard spending and are unable or unwilling to exceed that amount, then having something other than a credit card or debit card to secure you on board spending account is a good idea. As you mentioned, onboard spending is cashless, so for someone who has trouble managing spending on a card, it can be very dangerous.

 

If that isn't you and currency exchange isn't an issue, then there is no advantage. Just pay off the card when you get back and hold onto your money as long as possible and get a free loan from the credit card company. The interest earned on your money between now and when your bill is due is effectively meaningless. You may find someone giving 2% if you jump through a lot of hoops, but even on $1000, that is only $10 if the period is half a year.

 

Now, NCL loves getting as much money as early as possible, but that has more to do with cash management issues and interest they owe versus any interest they might earn off the money.

[LMaxwell]

Correct, I'm American, so the exchange rate advantages wouldn't apply to me.

 

Another question: What does DSC stand for? (No doubt I'll slap my forehead as soon as I find out.)

Sign up for NCL Mastercard fr Bank of America and do it soon! You get $100 obc after first purchase on the card.

[NCLfamily]

DSC is discretionary/daily service charge. $13.50 per day per person added to your account or you can prepay before you cruise.

[3Fluffies]

DSC is discretionary/daily service charge. $13.50 per day per person added to your account or you can prepay before you cruise.

 

Yep, forehead smack! (I kept thinking "C" stood for "credit" and was drawing a blank.)

[NLH Arizona]

If you live in the United States, I don't see any advantage of purchasing OBC. One can simply charge everything to their onboard account and pay for it at the end of the cruise.