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Topping up credit card HIGHER than its limit, to increase the spending limit ? work ?
Meganjones
Posts: 91 Forumite
in Credit cards
This is just an example, but:
If you have a credit card with a limit of £1000, and then you spend £200 of it, leaving you with a spending amount of of £800,
Then if you top up the card (With a slip at the bank, 3 days) with £600 cash
then £800 + £600 = £1400, which will be over its limit, (the limit is £1000 remember)
Then will that make that cards spending limit of £1400, (even if the credit limit is just £1000)
so £1400 will be available to be used, for a single purchase?
This is just an example,
Why topping up more than is required? , because an item is to be purchased which is more expensive that the credit limit.
Card asking for?
- Santander Mastercard, and Vanquis
and have you done this before?
for a similar thing, did it work well? (to top it up higher than its limit, to increase its spending limit)
If you have a credit card with a limit of £1000, and then you spend £200 of it, leaving you with a spending amount of of £800,
Then if you top up the card (With a slip at the bank, 3 days) with £600 cash
then £800 + £600 = £1400, which will be over its limit, (the limit is £1000 remember)
Then will that make that cards spending limit of £1400, (even if the credit limit is just £1000)
so £1400 will be available to be used, for a single purchase?
This is just an example,
Why topping up more than is required? , because an item is to be purchased which is more expensive that the credit limit.
Card asking for?
- Santander Mastercard, and Vanquis
and have you done this before?
for a similar thing, did it work well? (to top it up higher than its limit, to increase its spending limit)
0
Comments
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Yes this will work, I've done it myself several times.
You end up with a credit balance on the card, card companies don't mind at all. After all they can earn interest on your money.
However, they will not, usually, pay you interest on your credit balance the way a bank would. But if you're only talking about a few hundred quid, the loss of interest would be pennies, especially if it was for a short amount of time.0 -
yes, you can do it..
individual purchases can't be higher than the limit though.. a very large purchase would need to be broken up.0 -
Some card issuers forbid this in their T&C - can't speak for the ones you mention
If you do it they reserve the right (which they may or may not exercise) to return the payment0 -
Generally it's against the T+Cs. Deposit taking and lending are separately regulated activities and CCs are not set up as deposit accounts. Positive balances can occur, but CCs risk compliance issues if they allow this to happen as a matter of course.
If you deliberately put an account into credit, you always risk having it returned or having it frozen. No doubt people do it without a hitch (often to avoid interest when withdrawing foreign cash on non-loaded cards such as Clarity). Whilst people might think they "like" having a free loan from their cardholders, compliance is everything these days. (At least when it probably doesn't matter much!)
If a transaction is performed entirely out of a positive balance, a CC would be within its rights to refuse a S75 claim.0 -
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And/or block the cardSome card issuers forbid this in their T&C - can't speak for the ones you mention
If you do it they reserve the right (which they may or may not exercise) to return the payment2.22kWp Solar PV system installed Oct 2010, Fronius IG20 Inverter, south facing (-5 deg), 30 degree pitch, no shadingEverything will be alright in the end so, if it’s not yet alright, it means it’s not yet the endMFW #4 OPs: 2018 £866.89, 2019 £1322.33, 2020 £1337.07
2021 £1250.00, 2022 £1500.00, 2023 £1500, 2024 £13502025 target = £1200, YTD £9190
Quidquid Latine dictum sit altum videtur0 -
jackieblack wrote: »And/or block the card
If you are in breach of the CC agreement they may even cancel the account altogether0 -
Yes this will work, I've done it myself several times.
You end up with a credit balance on the card, card companies don't mind at all. After all they can earn interest on your money.
However, they will not, usually, pay you interest on your credit balance the way a bank would. But if you're only talking about a few hundred quid, the loss of interest would be pennies, especially if it was for a short amount of time.
This is bad advice.
As others have said it is almost always a breach of the T&Cs.
You may get away with it once or twice, there are circumstances outside your control where it may happen (a refund to the card where the refund exceeds the debit balance) or accidentally overpaying.
If the latter happens regularly though you may find they will close your account.0 -
This is bad advice.
As others have said it is almost always a breach of the T&Cs.
You may get away with it once or twice, there are circumstances outside your control where it may happen (a refund to the card where the refund exceeds the debit balance) or accidentally overpaying.
If the latter happens regularly though you may find they will close your account.
Well thanks
However, after a little more research I think I was wrong, and you shouldn't do it.
Some have said it is a breach of the terms and conditions - that may or may not be true, but I examined the T&C's for the following cards:
MBNA Platinum
American Express (BA)
Tesco MasterCard
Nationwide Select Visa
In all of the T&C's the only place I could find any mention of a credit balance was the Nationwide Select Visa where it says:
"7(e)
If we close your account for any reason and, at the date of closure, it has had a
credit balance for the previous 6 months, then upon closure, that balance will
be removed from your account and donated to a charity of our choice. You can
contact us to retrieve any money removed in accordance with this clause at any
time within 6 years from the date your account was closed"
HOWEVER, LLoyds Avios Reward credit card T&C's specifically state:
"15.9 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent."
So, the answer it seems it that some card providers would view it as a breach of their T&Cs, some maybe would not. But even if it is not in your T&C's, I would advise against it because it would probably flag your account as one with unusual activity, and it could then be cancelled or suspended.
( or you could be charged as was the case here:
http://www.telegraph.co.uk/finance/personalfinance/2804623/Card-holders-charged-for-being-in-credit.html )
As I said I have done it a few times, and nothing bad has happened, but that's not proof of anything.
I guess I'll just shut my big gob from now on
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Shameless bump over :spam::huh: Don't know what I'm doing, but doing it anyway... :huh:0
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