Which Credit Cards can you be in credit with?

lucyok

Hi there,
I've had a John Lewis partnership card for 10years and have enjoyed the rewards of John Lewis vouchers for using their card. However I have always overpaid my credit card so that i was actually in credit so never suffered any fees, just points towards vouchers. In October JLP updated their website and another update was that I could no longer pay more than my £100 credit, not a few grand depending on what I needed to spend in any given month...now I understand as a business why they have done this and there must be more than just me doing it as to change their system so my question is: what credit cards can I pay myself into credit with and take advantage of vouchers etc. with?

I do need a credit card for big purchases, possibly to use for emergencies abroad, but I don't need a line of credit and I certainly don't want to pay late fees. Any tips, much appreciated!

[Deleted User]

Technically none. You run the risk of having your account closed/funds returned with any of them.

Having said that, some are more lenient than others, but there's no guarantees.

Why not simply clear the balance in full each month and avoid fees that way?

LuSiVe

lucyok wrote: »

I do need a credit card for big purchases, possibly to use for emergencies abroad, but I don't need a line of credit and I certainly don't want to pay late fees. Any tips, much appreciated!

Any credit card, don't pay it into credit, just pay off in full when they ask you to. Simple.

bengalknights

MBNA definitly allow it as i have a credit balance that i spent down over couple months with them.

guesswho2000

bengalknights wrote: »

MBNA definitly allow it as i have a credit balance that i spent down over couple months with them.

I'd say more tolerate it, rather than allow it - most will "allow" you to pay it into credit, but it'll almost certainly be against the terms and conditions.

In practice, most won't worry if it's occasional (it could easily happen if you pay the balance off, then receive a large refund, for example), but specifically paying a large sum into credit could leave your card blocked while money laundering checks are performed!

Bear in mind that while you're spending a credit balance, you have no S75 protection (as you're not borrowing any money).

agrinnall

lucyok wrote: »

I do need a credit card for big purchases, possibly to use for emergencies abroad, but I don't need a line of credit and I certainly don't want to pay late fees. Any tips, much appreciated!

Only one tip is needed: arrange for a full balance direct debit to be set up on your existing card. You will get all the benefits you currently have while not risking having the card closed for persistently breaking the T&Cs. [You will also need to ensure that you have enough money in the account that the DD uses to cover the balance at the time the DD is taken, but it doesn't sound like this would be a problem for you]

chattychappy

"deposit taking" and "consumer credit" are separately regulated. It becomes tricky from a compliance point of view if CCs allow you to put cards into credit. There are also concerns about money laundering.

Now CCs can "be" in credit by other means - eg you pay off the balance and then a refund hits the account. But in general they shouldn't allow people to run a positive balance.

Shakin_Steve

guesswho2000 wrote: »

Bear in mind that while you're spending a credit balance, you have no S75 protection (as you're not borrowing any money).

Thanks for that :T


Edit: Just to be pedantic, if you had a credit balance of, say, £400, and you made a purchase for £500............????

lucyok

I've been using my credit card like this for 10years (as written in my original post), I don't want to be in debt, although I have access to an overdraft I took it off and I own my house outright. I just don't want to owe anyone anything...yes unusual for this day and age when it's all spend as much as you can get credit for!

lucyok

Thanks for all the answers pay off the balance at the end of the month, that wasn't my question and I don't want to be in constant debt.

lucyok

Thanks! That information was exactly what I was looking for, I'll take a look!