loading a credit card with credit?

Beaker99

Hi all

i've just got a halifax clarity card for use on holiday. I wondered if i load it up in credit, then use it to withdraw cash, then no interest would be payable as it would, in effect be immediately paid off..

any idea if this would work - or even if is possible to load a card positively with a few hundred quid?

all help gratefully received!!!

Beaker.

YorkshireBoy

Read your T&Cs. Start with condition 16.9

What's the APR?...12.9%?

Then £500 withdrawn over a 2-week holiday will incur £1.17 in interest if settled on your return to the UK.


This really should be a sticky!

Beaker99

Yes, 12.9%.. and you're right, section 16.9 of tc's scupper my plan!

Will prob just make sure i pay off card asap!

Kittycat1981

Why load up the card with £200 before you go? Just take it in cash with you when you go?

grumbler

Kittycat1981 wrote: »

Why load up the card with £200 before you go?

I think that OP made it clear: so that "no interest would be payable" after the cash is withdrawn.

Just take it in cash with you when you go?

Firstly, where and at what rate?
Secondly, IMHO a card is more secure and more convenient to carry around than cash. It's the 21st century after all.

PeacefulWaters

Kittycat1981 wrote: »

Why load up the card with £200 before you go? Just take it in cash with you when you go?

It would be better value to withdraw cash in local currency from an ATM on arrival.

N1AK

Beaker99 wrote: »

any idea if this would work - or even if is possible to load a card positively with a few hundred quid?

I nominally put myself on a positive balance on the clarity card a couple of times (transferring money over when I knew I'd be withdrawing foreign currency the same day or later) without issue.

In general I tend to transfer the same amount I spend on the card each day when abroad online. So say for example I fly to Berlin, withdraw €200 and buy a transport pass and food worth €100 on my card, when I get back to the hotel I login to my bank account and transfer ~£225 over to the clarity card.

In short, I think you'll get away with pre-loading but there's very little reason to bother unless you can't find any way to get online while on holiday.

Beaker99

Thanks n1ak, that's probably what i'll do.

thanks to everyone for making the thread interesting!!

agrinnall

Beaker99 wrote: »

Thanks n1ak, that's probably what i'll do.

thanks to everyone for making the thread interesting!!

Of course, what N1AK suggests is also quite likely to be pre-loading as the transactions may take a day or two (or longer) to hit your card.

Personally if I was only going for a week I probably wouldn't bother at all, I'd enjoy my holiday and take the very small hit on interest when I got home. For a longer stay I might check once a week and transfer the amount that is shown as due at that time.

N1AK

agrinnall wrote: »

Of course, what N1AK suggests is also quite likely to be pre-loading as the transactions may take a day or two (or longer) to hit your card.

Very true. Though I've put thousands through that way by now over the last couple of years without issue, and theoretically the bank trans can take a couple of days as well depending on when you do it.

It doesn't save a lot, but I'm all for saving a couple of quid if all it means is 30 secs work on the hotel wifi

lpgm

A cash withdrawal almost certainly won't appear in your account on the day you do it. And remember they don't start charging interest until it does.

I think it makes sense to play fair, pay a few pennies in interest if need be, and not give them an excuse to withdraw this excellent card.

But do also remember to pay off any statement that is made up in the meantime. An amount due on a statement takes priority over any cash withdrawal you make.