Overpaying / Pre-paying on credit card?

Will4long

Was just thinking to msyelf and wondering if anyone can assist.

Basically, I have a Tesco Mastercard at present with £5000 limit.

I am just about to take out a personal loan for £20,000 for car purchase.

Once the loan is through and i`m about to purchase the car, could i put the £20,000 onto my credit card before i go to garage and then buy the car on my credit card knowing that the money is there, thus getting me lots of nice clubcard points.??

Or i`m being wishful and probably someones going to tell me theres all sorts of hidden fees if you do this or its bad for your credit rating etc.

All help much appreciated.

Cheers

W

YorkshireBoy

It'll set all sorts of AML alarm bells ringing and likely mean your card is blocked (for a considerable time). Don't do it!

NickX

Also the car dealer is highly likely to charge you a surcharge of around 3% for paying by Credit Card which on a £20k car is going to be quite a bit

lolarentt

Will4long wrote: »

Was just thinking to msyelf and wondering if anyone can assist.

Once the loan is through and i`m about to purchase the car, could i put the £20,000 onto my credit card before i go to garage and then buy the car on my credit card knowing that the money is there, thus getting me lots of nice clubcard points.??


Cheers

W

You'll find generally most dealers wont let you put more than a deposit, £1000 or possibly 10% on a credit card, without a penalty. (I've never managed more than that in my quest to maximise my Amex rebates in recent years!) More than that and they'll want a percentage surcharge.

Will4long

Oh well, thats that answered:rotfl:

Thought £20,000 on my Tesco card and all those lovely associated clubcard points would be too good to be true.

Hard cash it is then.

Thanks for the quick answers peeps.

:beer:

Hunger4Unger

You can't do it as the 5k limit on the card is the maximum that can be spent in any 30 day cycle, even if you did pre-load the card with 20k.