How to get a large balance on credit card and then remove it?

MrChips

At some point in the next few months I will need to build up a large balance on my credit card (in region of £6k to £10k) and then reduce this to zero a few days afterwards. However I don't want to have to spend several thousand pounds on something I don't need so am trying to think of the most efficient way of achieving this.

One idea would be to do a balance transfer but this would most likely incur a fee of around 3%.

Another idea I heard of was to pay it to HMRC as a downpayment for tax owed, and then reclaim it as an overpayment when I submit my tax return. However HMRC charge 1.25% on credit card payments.

Finally I considered purchasing some expensive items and then returning them at a later date. This would be free of fees, but inconvenient and potentially a risk that the shop wouldn't accept the items returned.

Any other clever ideas out there?

ILW

All sounds a bit dodgy to me. Why would you want to build up a large balance if you do not want to buy anything?

withabix

What sort of fraud are you trying to commit?

hur575

Why is it a fraud to try to increase your available credit? most people here advice of using it to maximum then pay it off but what if you do not have that much to spend every month?

It is nice to be able to have large credit available with zero interest offers, the bigger the sum the more it is worth your while.

Tixy

hur575 wrote: »

Why is it a fraud to try to increase your available credit? most people here advice of using it to maximum then pay it off but what if you do not have that much to spend every month?

It is nice to be able to have large credit available with zero interest offers, the bigger the sum the more it is worth your while.

The OP doesn't want to increase his available credit. It sounds like he want to artifically inflate the amount their liabilities (for example could be to do with a divorce settlement or something similar?)

hur575

Tixy wrote: »

The OP doesn't want to increase his available credit. It sounds like he want to artifically inflate the amount their liabilities (for example could be to do with a divorce settlement or something similar?)

Thanks, I missed that part ''then reduce this to zero a few days afterwards''

[Deleted User]

Tixy wrote: »

The OP doesn't want to increase his available credit. It sounds like he want to artifically inflate the amount their liabilities (for example could be to do with a divorce settlement or something similar?)

Ah - I hadn't thought of the divorce type settlement scenrio. I was thinking just good old fashioned money laundering. I was envisaging the OP popping into Barclays with a bagful of bloodstained, cocaine-covered, bank notes, paying it to their card and then drawing a nice clean cheque a couple of days later!

Bit disappointed that it's more mundane....

MrChips

Hi guys - sorry for the mystery, it isn't anything as dodgy as all that. I have a sort of PPI policy attached which pays off 15% of my outstanding balance in event of various lifestyle changes including birth of a child and my wife is pregnant

Therefore to maximise the benefits of the policy I am trying to make sure that the outstanding balance is as big as possible on the big day. Unfortunately the premium for the policy is also based on the amount of the outstanding balance but measured on the statement date rather than the lifestyle change date. Hence my wish to reduce the balance to zero shortly afterwards.

Definitely not trying to defraud anyone or artificially inflate liabilities. Just squeeze as much benefit as possible from the policy without infringing the T&Cs.

MrChips

Deleted_User wrote: »

Ah - I hadn't thought of the divorce type settlement scenrio. I was thinking just good old fashioned money laundering. I was envisaging the OP popping into Barclays with a bagful of bloodstained, cocaine-covered, bank notes, paying it to their card and then drawing a nice clean cheque a couple of days later!

Bit disappointed that it's more mundane....

Sorry to disappoint But that did make me chuckle...

Off topic but I read once that over 99% of UK banknotes have traces of cocaine on them!

Tixy

Buy baby 'stuff'? that way if the shops won't accept returns at least you'll have a well kitted out baby. And if the PPI co did question it, it would look more realistic. Although admittedly it might be hard to get that up to £6k....

MrChips

Thanks, that is an option, although agree it would be hard to max out the card this way, and I try and do all my day to day spending on my Amex card due to the cashback.

Plus the spending would all have to take place in a short time (possibly a week or less if the baby decides to be born the day before the statement date!) - although I could ring and move the statement date as a last resort I guess