might sound crazy but can you pay money into your credit card to cover future spends

dealorno

this might sound a crazy idea but what would happen if I paid in an amount to my credit card that would cover all of next years spends on the card ? I spend around £900 per month on my credit card and pay it off every month. I've just came into some money and would like to pay a sum to cover a full years payments in advance , is there anything against doing this ?

HappyMJ

It's against the terms and conditions.

Got to ask...why? What's wrong with leaving it in a interest earning current account and setting up a direct debit to pay it in full each month from this account,

You could purchase a prepaid Mastercard and load it with funds.

MisterBaxter

Credit Card companies don't seem to get too upset about small positive balances; it can happen quite easily if a refund is done after the balance is paid, it is generally against the card issuers T&Cs and I can't see that they would be happy to allow you to put a whole year's worth of positive balance on a card. With a spend of £900 per month they may even be concerned about money laundering as it is a fair bit of cash.

Open a current account that pays interest, put your cash in that account and set up a DD to pay the CC bill in full each month. It's the same outcome and you stand to make a bit of cash as well. If you are worried that you may be tempted to spend it because it's there just set up a new account just for this purpose.

InsideInsurance

Given you earn no interest on an in credit balance why would you do this? Stick it in savings and earn interest and pay off in full each month from it.

Most people who want to add funds are trying to buy something that is over their credit limit, eg you have a £1k limit but want to buy something for £1,500 so they add £500 cash to try and get it in. As has been mentioned it is normally against the terms of the card. For small amounts, normally caused by refunds or accidental overpayment then it'll roll forward and be taken off next months spend but large amounts may trigger other processes and could well be automatically returned to you.

Anthorn

Already been covered several times. As stated previously, get a prepaid card such as Pockit which incidentally also has rewards for shopping in certain places.


Also try your local credit union and see if they have the credit union prepaid card. You load up your credit union account and then use the card. With your balance you'll also be helping other members with their small loans.

grumbler

dealorno wrote: »

I .. would like to pay a sum to cover a full years payments in advance

HappyMJ wrote: »

You could purchase a prepaid Mastercard and load it with funds.

Anthorn wrote: »

...As stated previously, get a prepaid card ...

Loading a prepaid card with thousands for many years ahead is careless to say the least.
Although the money can be 'ring-fenced', it's not covered by FSCS.
All bookies licensed by UK Gambling Commission have to 'ring-fence' customers' funds now. The practice demonstrates that this ring-fencing is worthless.

Anthorn

grumbler wrote: »

Loading a prepaid card with thousands for many years ahead is careless to say the least.
Although the money can be 'ring-fenced', it's not covered by FSCS.
All bookies licensed by UK Gambling Commission have to 'ring-fence' customers' funds now. The practice demonstrates that this ring-fencing is worthless.

You've voiced an objection so you must have an alternative in mind. So what is it?


The OP has stated one year of payments not several years.

alderpoint

If you pre-load a credit card, then you cease to be using credit when paying for things, so are no longer covered by the Consumer Credit Act.

Some companies get very shirty if you pre-load their card - they start doing things like refusing withdrawals at ATMs.

grumbler

Anthorn wrote: »

The OP has stated one year of payments not several years.

I misread the post.

Re alternative, I might be missing something, but I am still at loss why it can't be a current or savings account.

sleepyjones

I had a positive balance on a Credit card a few years ago, was around £60 ... My intention was to close the card so I made a manual payment to pay off the balance but I think the Direct Debit came off at the roughly the same time, leaving me a positive balance. I then just left it for about year, without the using the card at all and got a letter from the CC company (RBS) saying something along the lines of I was mis-using the card and they were going to close the account.
Possibly because I had a credit balance or possibly because I just wasn't using it ... possibly a combination of both.

enthusiasticsaver

It is a crazy idea OP and I cannot see any advantage in it for you even if the credit card company allowed it.