Credit cards in credit

I have just been told by Nationwide that I can't keep my credit card in credit. One might wonder why anybody would want to do this. I live alone, am elderly, and if I were to be admitted to hospital or in some other way be unable to settle my monthly account I want sufficient funds there to cover my purchases. If I were to use direct debit I should have to make sure that my current account had sufficient funds in it to pay off the total.

Is it illegal to keep a credit card in credit or is it just Nationwide playing silly beggars?


  • MadProf
    MadProf Forumite Posts: 63 Forumite
    Whilst not illegal, it's against the T&Cs of most, if not all, UK card providers to carry a positive balance on a credit card.
  • Thrugelmir
    Thrugelmir Forumite Posts: 89,546
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    k99.ward wrote: »
    If I were to use direct debit I should have to make sure that my current account had sufficient funds in it to pay off the total.

    Then why not simply just do this.

    Alternatively set up a direct debt to pay the credit balance in full every month.
  • k99.ward
    k99.ward Forumite Posts: 8 Forumite
    edited 10 October 2014 at 6:16PM
    That was the Nationwide suggestion too but just think about it. To do that merely transfers the problem to my current account that would then be overdrawn if I was unable to pay because I was in hospital. Nationwide have now told me that they are going to put a 'note on my account' to stop them pestering me but will it work? Only time will tell.
  • MadProf
    MadProf Forumite Posts: 63 Forumite
    Using financial instruments carry with it a certain level of administration and responsibility.

    Are they "pestering" you because you've been carrying a credit balance on your card for a while? You may find that they'll summarily close your credit card account as you're violating their terms and conditions.

    Not trying to be disrespectful but how will you spend on the card and incur charges if you're in hospital anyway?

    Keeping the funds in your current account instead and then spending on the card would presumably not put you into a negative balance on the current account when the statement is paid as long as you spend within your means - you wanting to carry a positive balance also indicates that your intention is spending so that the card never drops into a debit balance which means you have the cash available now or will siphon whatever you intended to spend onto the card. So just keep it in the current account and set up a direct debit to pay the statement balance in full when due.

    If using the card is going to present a problem why not eliminate it altogether and spend directly using the debit card associated with your current account? Yes, you'll miss out on card perks like cashback, S75 protection and the like but if it simplifies your financial situation it may just work for you.
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