Over paying on a card

dodg

My son has recently obtained his first credit card and as a consequence his credit limit is initially low at £100.
He would like to use the card to obtain the consumer benefits that go with credit card payment, but the card credit limit severely restricts this.

Is it possible to pay additional over and above the monthly bill to go into credit as it were, thereby allowing wider usage of his card on more expensive puchases.
He is planning to the usual world travel soon and I would like him to have this option.
He has contacted his card company but the answer they provided was not clear.
Any advice would be very appreciated.

My apologies if this has been covered previously, have searched and not found.

davetrousers

You may need to refer to the Ts and Cs of the Credit agreement/contract.

lisyloo

Be careful.
Some card companies do not insure credit balances.
This means that if your son's money is stolen or used fradulently then it's lost.
Some companies only insure their own money i.e. debit balances.

Eydon

Some credit card companies won't allow you to go into credit, and will return overpayments automatically. As Dave says, check your T&Cs, or tell us what credit card your son has.

Also, if you did manage to get into credit on the card, purchases that you make might not be covered under s75, since technically you wouldn't be using credit to make the purchase.

Moggles_2

Not advisable. Credit cards - other than Egg Money - are not designed to carry a positive balance. Small amounts that arise temporarily (due to a refund, for instance) are okay, but some lender's Ts & Cs specifically prohibit payments that deliberately place the account in credit.

More to the point, you cannot normally spend more than your entire credit limit in one day regardless of your actual balance. (Exceptions to this would be lots of transactions under floor limit and delayed transactions from abroad, though I wouldn't risk it overseas either, as users' cards have been blocked in these circumstances.) You can't do it as the £100 limit on the card is the maximum that can be spent, even if he did pre-load the card.

dodg

Many thanks for all your expert advice, just goes to show what I thought must surely be a complete win win for both parties is just not worth the taking risk.
For information the card is a Capital One Classic.
I will not proceed with the idea.

jonesMUFCforever

dodg wrote: »

Many thanks for all your expert advice, just goes to show what I thought must surely be a complete win win for both parties is just not worth the taking risk.
For information the card is a Capital One Classic.
I will not proceed with the idea.

You could ask for a small increase in limit.

PNPSUKNET

capital one let me when I paid by dd and bacs in error and it put me in credit, however it was a pain spending on it.

PNPSUKNET

was 4 years ago also

lisyloo

and was clearly accidental

stebiz

I had a nightmare with my wifes credit card, Thought I was doing her a fvour. With her permission, I paid the card off and banged £500 on it so she could Xmas shop. They stopped her card and I had to 'fight' for the money back, and her account to be re-activated.

I closed her account and opened another with her. Some card companies are nothing but rogues!!

Stebiz