Credit Card - making a purchase for more than limit

vinny3000

Hey,

I currently have a new credit card that I get cash back rewards on my spends. They have given me a limit of 2600 however the holiday I was looking to book online was 3400ish.

I have the money to pay the holiday off outright but was wondering if there was any way to use the credit card to do this, 1) so I get the cash back rewards, 2) to get the extra security on the purchase.

As soon as the statement is produced I'd pay the full balance off.

It might sound a daft question but is there any wwork around to allow this ie, deposit money onto my Cc to give it a positive balance?

Cheers

parksajj

Or call the credit card company and ask for an increase, explain why you want / need the increase and depending on which company hold the card they might help you!

vinny3000

Cheers park this was option 2 - it's with tesco but had it less than 2 month so didn't know if they will have wanted to see more history before up'in the limit

DomRavioli

Most CC terms and conditions explicitly state you cannot go into credit - they can remove the card account, so don't do this, its stupid.

Call the CC company, and ask for an increase. If not, then you will have to pay X amount on the card and X amount on another card.

Please also remember to factor in the CC charge made by 99% of holiday companies - its usually around 2% but can be more - when asking for an increase.

parksajj

I'd ask them and whilst on the phone state that you can provide proof of funds. I've asked for higher limits on new cards in the US but never over here. There's never enough respect for the customers in this country.

zerog

If you can't get the limit increased you should see if you can pay using 2 cards over the phone. This will still give you full protection

gt94sss2

As long as you pay £100+ on the credit card, you get Section 75 protection for the entire cost of the holiday.

Of course, the OP won't be able to maximise the cash back if they can't put the whole cost on the card but the legal protection is different.

Regards
Sunil

Mr_Lawnmower

zerog wrote: »

If you can't get the limit increased you should see if you can pay using 2 cards over the phone. This will still give you full protection

If, by "protection", you're thinking of section 75 Consumer Credit Act 1974, part payment by card is sufficient. The wording in s. 75(1) is "transaction financed by", not "transaction fully financed by".


However, the usual exceptions to s. 75 apply.

It has to be a "debtor-creditor-supplier" arrangement with just those three parties, which excludes:

• transactions by an additional cardholder from which the primary cardholder derives no benefit
• some transactions involving an additional party such as a group buying site (this is a bit of a grey area - certain indirect transactions are covered under s. 75)
• transactions that reach the card account via an indirect payment method such as PayPal or a credit card cheque

The finance has to be from a credit card or other credit agreement. The complex looking wording of s. 75(3)(c) explicitly excludes charge cards that require you to pay the entire balance following each statement (as is the case for the non-credit cards issued by American Express).

The cash price of the item in question must be between £100 and £30k for s. 75 to apply.


There's more detail on the MSE section 75 page.


The main aim of the original poster seems to be cash back, but, as has been pointed out, the transaction charges applied by holiday companies to credit card payments could well outweigh the available cash back.

agrinnall

gt94sss2 wrote: »

As long as you pay £100+ on the credit card, you get Section 75 protection for the entire cost of the holiday.

Regards
Sunil

No, as long as the cost of what you are buying is over £100 (I think there's an upper limit that may be £30K but don't quote me on that) then any amount put on the CC gives S75 protection.

planteria

i have used Amex to do this several times. if i had a 5k limit, and wanted to make a 7k purchase, i would make a 5k purchase, then wire 2k(or more) to my card, then spend the 2k moments later.

AMG762

agrinnall wrote: »

No, as long as the cost of what you are buying is over £100 (I think there's an upper limit that may be £30K but don't quote me on that) then any amount put on the CC gives S75 protection.

Thanks for this. I always wrongly thought you had to pay £100 on the card as well