using credit card instead of bank -help please!

boogoose

I worked with a woman who had her wages paid to her credit card instead of the bank. She was a bit strange in lots of ways - everything was a conspiracy! but I wondered if using a credit card in this way was a good idea.
I have a small debt on my card and paying it off with my wage would save interest if I spent less than I paid in that would pay off debt.
Is there any sense to her wacky ways or will I be digging myself a big hole?
Please help!

Any

And how are you going to pay your rent/morgage?
All your payments would have to have the option of being paid by credit card... Because the moment you withdraw cash it is a cash advance on huge interest.

boogoose

All 'bills' are paid from hubby's wages and my wages are used for 'spending money', shopping, petrol, etc.

dazza.mk

If the money is paid directly to your credit card you will:

1) Lose the (minimal admittedly) interest you could receive from your wages in a savings account between the credit card statement date and payment due date.
2) If you had a 'minimal spending' month theoretically your wages 'might' take your credit card into a credit balance, which, with the majority of providers would breach their terms and conditions and cause hassle.

boogoose

Thanks for that dazza. I hadn't thought of that. Had realised about loss of interest obviously but not possible breach of t&c's

never-in-doubt

boogoose wrote: »

I worked with a woman who had her wages paid to her credit card instead of the bank. She was a bit strange in lots of ways - everything was a conspiracy! but I wondered if using a credit card in this way was a good idea.
I have a small debt on my card and paying it off with my wage would save interest if I spent less than I paid in that would pay off debt.
Is there any sense to her wacky ways or will I be digging myself a big hole?
Please help!

This would surely be impossible. In order to perform any BACS payment into another account you require a reference, this is usually the credit card number. Your employer would not know this and would not use it. They would, if anything, leave it blank or use your pay number.

For instance, say HSBC Credit Card account details are: 40.40.41 / 88888888. I go to my payroll and ask for salary to be paid into this account - HSBC will take receipt of my wages but how would they know it belongs to me? Impossible for them to without the corresponding credit card number to link to!

It simply cannot be done. Your friend is most probably talking bollox

YorkshireBoy

never-in-doubt wrote: »

It simply cannot be done.

Of course it can. You'd provide your employer with the reference, just as you would if you had your wages paid into a bank or building society savings account using a collection account number (such as those provided by A&L et al).

never-in-doubt

YorkshireBoy wrote: »

Of course it can. You'd provide your employer with the reference, just as you would if you had your wages paid into a bank or building society savings account using a collection account number (such as those provided by A&L et al).

Nah, employer would not take a reference..... where do you see that? No mainstream employers will pay it into a credit card, get real. Cmmon, this is bordering ridiculous.

I've been discussing similar in another thread and argue that employers can pay money into other accounts, yes they can, but not credit card accounts and also the logistics are bonkers - what pay a % each time you need cash, high APR's and remaining in credit all the time, or of course remaining in debit all the time - eventually the CC will say no thanks and limit the account/close the account or simply reduce the limit.

A CC is designed to remain in debit - not credit!

Snooze

never-in-doubt wrote: »

Nah, employer would not take a reference..... where do you see that? No mainstream employers will pay it into a credit card, get real. Cmmon, this is bordering ridiculous.

I've been discussing similar in another thread and argue that employers can pay money into other accounts, yes they can, but not credit card accounts

Your advice is usually spot on but afraid you appear not to be clued up here. Credit card accounts have an account number and sort code just like normal bank accounts, the only difference being that they need a reference number in order to correctly allocate the funds (as already mentioned above). Prepaid cards work in exactly the same way and it's no problem at all to have wages paid to them, and in fact many people without a proper bank account have their wages paid via this way.

Personally I don't see any benefits of having wages paid to a CC account, but it can be done and with no more hassle that making a transfer to a normal bank account.

R

never-in-doubt

Snooze wrote: »

Your advice is usually spot on but afraid you appear not to be clued up here. Credit card accounts have an account number and sort code just like normal bank accounts, the only difference being that they need a reference number in order to correctly allocate the funds (as already mentioned above). Prepaid cards work in exactly the same way and it's no problem at all to have wages paid to them, and in fact many people without a proper bank account have their wages paid via this way.

Personally I don't see any benefits of having wages paid to a CC account, but it can be done and with no more hassle that making a transfer to a normal bank account.

R

I said all that in my last post! I am clued up and know what you're saying but I am saying it will not be done - the CC companies will not allow it - just try it or at least give me the name of a company that has done it.... Its one of those grey areas in that yea it probably can be done but wouldn;t last as the CC company will not allow it - especially not if you;re continually in credit and running it like a bank account.

Also you cannot pay mortgages with a CC, you pay for cash withdrawals - there are way too many factors that make me question the legitimacy of the OP - thus I said it is bordering ridiculous!

I agree PrePay accept this, for instance Tuxedo actually promote it and recently changed their PAYG Maestro to allow DD's and salary etc - but similarly, the costs outweigh the features.....

Oh, to end I think you'll find that running it as a bank account invalidates any s.75 as well as the actual CC T&C's.....

never-in-doubt

never-in-doubt wrote: »

This would surely be impossible. In

Sorry editing this to read impracticable!