Get your thinking hats on and help me out.

mum1964

I am about to spend £3 k on a holiday and £12k on premium bonds. (I know thats not the best investment but its a long story)

I have a Tesco world mastercard
A british airways amex
A m/s credit card
A debenhams credit card

Now whilst the credit limit on each card will not cover the purchase, i know that i can pay an amount into the chosen card, prior to purchase, thus covering the spend.

The ho,iday company, are going to charge me 1.5% for using a credit card, so cost will be an extra £45.

I have rung amex, tesco, and m/s and they dont seem to understand what i want to do.

Being a money saver, i am looking for the best way to fund purchase.

How many c/c points will i get on a £3k purchase and on a £12k purchase.

Amex are offering a free companion flight, but as i have yet to use any ba miles i dont know if its worth it.

On the otherhand how many reward points will i get if i use my ms card.

Sorry to eaffle, it seems simple to me, but the card operators seem to misunderstand what i want.

eskbanker

mum1964 wrote: »

Now whilst the credit limit on each card will not cover the purchase, i know that i can pay an amount into the chosen card, prior to purchase, thus covering the spend.

The Ts & Cs of most cards prohibit pre-loading in the way you appear to be suggesting (and/or wouldn't allow a transaction above the credit limit even if the account has a large credit balance), but you can't buy premium bonds with a credit card anyway, so the total purchase value may be somewhat lower than you were anticipating....

SuperHan

mum1964 wrote: »

How many c/c points will i get on a £3k purchase and on a £12k purchase.

Do you buy premium bonds? It was my understanding that it was essentially money in a savings account that made you eligible for prizes. Looking at the NS&I website, I also can't find anything to contradict what I originally thought (but happy to stand corrected).


This means that it won't be a purchase you need for the premium bonds, but a money transfer.


These are usually treated as cash advances, unless you have a promotional deal, and will incur interest from the date of the transaction, sometimes at a higher rate than other purchases. This might be why the credit card companies are struggling to understand.

eskbanker

SuperHan wrote: »

Do you buy premium bonds? It was my understanding that it was essentially money in a savings account that made you eligible for prizes. Looking at the NS&I website, I also can't find anything to contradict what I originally thought (but happy to stand corrected).

You have to pay for them somehow! See the Ts & Cs at http://www.nsandi.com/files/published_files/asset/pdf/premium-bonds-brochure.pdf:

26. Where an applicant applies by telephone or via the
internet, the Bonds must be purchased using a debit card
in the name of the applicant issued by a UK bank or
building society.
<snip>
29. When an application is made by post the Bond must
be purchased using a cheque drawn on a UK bank or
building society account held by the proposed Bond holder
or applicant, where different.
<snip>
In all cases Bonds can also be purchased using
a UK building society branch cheque or UK banker’s draft.

There is also mention in 24(c) of electronic transfer as a valid method of payment but definitely not credit cards....

mum1964

Oh well thanks for replies, guess greed just got the better of me.

eskbanker

You can still use one of your cards for the £3K purchase, unless none of them has a limit higher than that? Or if not, then multiple cards for the purchase if the holiday company allows that?

bigadaj

Just for the holiday if you were to apply and be accepted for the Amex cashback everyday card then there is a useful arbitrage. Assuming you would get a £3k limit, pay a £45 fee but get cashback of £105 on the transaction. Amex were offering another £10 through topcashback for the application as well I seem to recall, not sure if this is still available though.

SuperHan

eskbanker wrote: »

You have to pay for them somehow!

I more meant, don't you invest in them, rather than buy them, in the same way that you wouldn't buy an ISA.