Why would you want/have a positive balance on credit card?

bongoali

Hi, I've read a few thread lately and I noticed a lot talk about a positive (i.e. they owe you) balance on an Egg Money Card.

How do you get a positive balance ?
More importantly why would you want a positive balance? Don't understand what use this is.

Thanks
bongo

duchy

If you took goods back to a store they would be refunded onto the card so you could have a positive balance that way if you'd already paid the balance in full that month.

Jammi

The reason some people create positive balances on their Egg Money Cards is because Egg, unlike most other credit card providers, do not charge to move the balance away from the card.

fozmcfc

I nearly ended up with a positive balance when I paid off my card, thinking they wouldn't take the direct debit but they were still going to, so I would have been £5 in credit. I spent £5 before the DD came out and it was sorted.

With my Egg card I did a transfer and asked Virgin to pay too much onto my Egg card and ended up £80 or so in credit. I had a payment coming out on the card monthly for £6.99, so eventually the credit was reduced to £0.

Wasteofspace

If you have a credit limit of £300 and want to buy something for £500 using the card pay the extra on before making the purchase.

bongoali

So you can put credit on one credit card by moving it as a transfer to Egg Money so you have a 'positive' balance on Egg Money ? And from there can move to your current account leaving Egg money at zero and a positive current account balance with opposite on the other credit card?

Have I got that correct? And I guess in the credit card to Egg money transfer there would be a fee (3% ish) ?

Thanks for your help

Paul_Herring

Wasteofspace wrote: »

If you have a credit limit of £300 and want to buy something for £500 using the card pay the extra on before making the purchase.

That risks voiding any Section 75 protection you would otherwise have by using the card to begin with. (Assuming, of course, the card in question would allow a payment to create a positive balance on the card to begin with.)

Whatdo

I try to leave all credit cards with a small positive balance.

I am more confident that the cards will remain open especially if I do not use one for several years.

By overpaying one could extend the number of days credit prior to charges being applied, as a statement will not show an interest charge if the statement balance is in credit. i have not tried this recently, but i suspect this is still the case

It is also possible that as credit cards are not expected to have positive balances they are therefore not requested as part of asset declarations.


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Monkeychops_3

Be aware that you are not protected if there was fraud/incorrect transactions on your account if you have a credit balance.