Credit loading for large purchase?

empfun

Hi folks,

I have a low limit on my credit card (£2000) with no balance. I am looking to purchase a new kitchen (£6000).

Would I be able to load £4000 onto the card and pay using it? Will the original £2000 credit limit come into play even though there is a credit balance (£4000) on the card?

Thank you

Thomas_Crown

empfun, if you load £4,000 credit onto your card then you should have no problems spending £6,000 on a new kitchen. However watch out for interest charges that may push you over your £2,000 credit limit because you will then get clobbered with expensive charges.

jonesMUFCforever

Please check with your card provider first!
Some cards will not allow a credit balance.
Have you enquired about increasing your limit?

If they won't increase your limit is there any reason why you cannot pay £2k on the credit card and the rest by cheque?

Thomas_Crown

ejones999 wrote: »

Please check with your card provider first!
Some cards will not allow a credit balance.

Sometimes it depends on how the credit balance is to be funded. I know that Sainsbury's Bank won't allow a credit card account to be put into credit by means of a balance transfer from another provider.

EG.If you have a debit balance of -£1,500 on your account with Sainsbury's Bank & you transfer in £2,000, they will immediatly return £500 to the sending bank.

I would presume that with most credit card providers putting your account into credit by means of a cheque or electronic transfer from a current would be a different matter altogether.

This information should be in the T&Cs that came with the card.

BenL

I think there is also an issue that the CC company will not be jointly liable for the purchase if it was used from a credit balance.

oxmatt

As a credit card issuer is not (at least not necessarily) regulated to take deposits (i.e. a bank) by the FSA they may not be able to have a credit balance.

We had a situation a few years ago where we accidentally paid the bill twice (misunderstanding with my wife) and they instantly locked the card until they had sent us a cheque refunding the second payment. That was with citicard who although part of a banking group thr card function is not a regulated deposit taker.

sicker

Get yourself an Egg Money card, problem solved. Interest on the positive balance and money back on the purchases.

John

taless

Empfun,

I believe you can't do that (at least with Natwest and LTSB). According to them, you can only spend up to the credit limit (2000 for your case) in any one transaction. So unless your seller agrees to charge u three times (3x2000), you won't be able to pay off the 6000 in one go.

riad_2

taless wrote: »

Empfun,

I believe you can't do that (at least with Natwest and LTSB). According to them, you can only spend up to the credit limit (2000 for your case) in any one transaction. So unless your seller agrees to charge u three times (3x2000), you won't be able to pay off the 6000 in one go.

Indeed all RBS products (mint, natwest, tesco) have a maximum single transaction limit of the credit limit... so you would have to get the retailer to agree to do it three times to do the 6k. I had the impression most cards operate in this manner, so best to check with your cc provider first before doing what you're suggesting!