Can you 'pre-load' a credit card?

Tally-Ho_2

Hi,

My brother has a credit card with Barclays. At his request he only has a low limit (£500). He has rarely used the card and always has paid anything owing every month in any case.

He is planning a trip to the USA early next year and in order to both buy the flights and take the card with him, what he wants to do instead of asking for an increased limit, is to pay about £1,000 or so to his card from his current account before he both buys his flight and again before he travels so as to have 'extra credit' on his credit card if you see what I mean.

Firstly can he do this to give himself a £1,500 limit and would such as his flights be covered by the credit card if the airline went bust if he does it this way?

Thanks

Tally

NickX

Most Card Providers are not too keen on large positive balances. There is one noteable exception which is Egg Money and is designed to go into credit.

There is a possibility that they will return the funds to their source or even worse, freeze the account upon suspicion of money laundering.

However, it you pay a deposit for the flights on the credit card (at least £1) and pay the cash for the remainder, the whole purchase will benefit from Section 75 protection under the Consumer Credit Act.

In addition this would minimize any surcharge that the travel agent is likely to add.

Once abroad be careful not to use the card for cash withdrawals because these incur interest (and usually a charge) from the date of the withdrawal at an extortionate rate, not adviseable unless you have money to burn.

Tally-Ho_2

Hi,

Thanks for that.

Unfortunately Egg turned him down for a credit card (he is in the army and has a BFPO address as he is currently in Iraq and due back early January - he wants to go to the USA on his post op leave) he also does not appear on an electoral roll as he is classed as a Service voter which means there are few cards which accept him.

Do you think if he rang his card provider (Barclays) they might let him have a positive balance as a 'one off' if he explains the circumstances

Thanks

Tally

ShelfStacker_3

Tally-Ho wrote: »

Do you think if he rang his card provider (Barclays) they might let him have a positive balance as a 'one off' if he explains the circumstances

It's worth a shot, although they might have something in their T&Cs to say that no positive balances are allowed.

YorkshireBoy

Tally-Ho wrote: »

Do you think if he rang his card provider (Barclays) they might let him have a positive balance as a 'one off' if he explains the circumstances...

Be very careful. Take a look at this horror story from last year...

http://forums.moneysavingexpert.com/showthread.html?t=528883

Paul_Herring

Note that using any credit card with a 'positive balance' (including Egg Money,) for a purchase negates any Section 75 protection you could otherwise benefit from.

Tally-Ho_2

Thanks all.

Good heavens, he is not laundering money, he just wants to go on a stress free holiday and spend the money he has earned and saved whilst being in Iraq for six months.

Given then that it would seem risky even if Barclays said yes to preloading his credit card, would his Barclays debit card work in the USA if he just left the money in his current account? I know he might incur charges but that seems to have less potential for !!!! ups if he can.

The only things he is worried about having just had an 'e-bluey' from him are paying for car hire and if the airline goes bust.

I suppose he could take out some form of insurance against the airline going bust but would he be able to pay for car hire using a debit card?

Thanks

Tally

calibrax

He can get a pre-paid card such as Cashplus. That's what I used when I couldn't get a regular card, you load it up with money by internet banking or by paying cash at the Post Office, and the card fee is £4.95 per month no matter how many transactions you make. It's a Mastercard so it's accepted pretty much everywhere. I found it very useful.

robbie_save

calibrax wrote: »

He can get a pre-paid card such as Cashplus. That's what I used when I couldn't get a regular card, you load it up with money by internet banking or by paying cash at the Post Office, and the card fee is £4.95 per month no matter how many transactions you make. It's a Mastercard so it's accepted pretty much everywhere. I found it very useful.

Don't get a £ prepaid card!

Tally-Ho - if your bro is going to the US, the best thing is to get a prepaid travel card. There is no commission, minimal fees (far less than credit card) and the money is loaded in dollars so there is no conversion fee.


FairFx are th ebest va;ue one in terms of exchange rate and fees from what I can see here:

http://www.whichwaytopay.com/compare-travel-fx-cards-summary.asp?Type=2

Afraid I have no idea about the flight insurance question......the card is a mastercard so maybe has same policies.

Hope that is some help

piglet74

hiya, i have done this 3 times in the past, all for the USA, first time it was with a visa for First Trust bank (and irish bank), i actually put all my spending £££ on it that time, about 5 years ago, next time it was one a capital one and last time a virgin mastercard - only £150, that was $300 at the time, for emergencys, or duty free on way home if not used,

captial one were they only company that were a bit "off" with me for doing it, but like that the credit limit was only £800 and the holiday i was booking was £2500, so i phoned them, explant the situaton, they said "go ahead, but if the card gets stolen and then mis-used while the credit is on it, we wont cover you",

but i made sure that didnt happen, as soon as the credit appeared on the card, i booked the holiday,

good luck,

Aeshna

Perhaps if he speaks to the cc provider to explain the situation, they would give him an increase in credit limit, which he could ask to be reduced again once he's back from travels and balance is repaid?

Aeshna