Credit card paid off immediately so I can use again?

NickCZ

Hi,

I’ll be changing a job in January for which I’ll need a car. I secured decent rate loan to cover this. However, dealer accepts credit card so I wanted to know if I can pay as much as possible on credit card, pay it off immediately and then use again. And repeat it until full value of the car is paid. Just asking as I could take advantage of cash back I’d get on credit card. Hope it makes sense?

Thanks in advance.

Nile

Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

I’ve moved your thread from the ‘I wanna’ board to the ‘Credit Cards’ board, where it is better suited.

Regards

Nile

Ben8282

In theory yes.
In practice though the dealer may become annoyed or be reluctant to cooperate if there are several transactions to be made.
Also, if the amount is very high compared to the credit limit and there are several large transactions and payments over a very short space of time, not sure how the card issuer will react.
What is the cost of the car and the credit limit on the card? Over what period of time will the transactions and payments be made?

Hoogle

In theory yes you could assuming
A) you have an app on your phone to do a faster payment to your card
That faster Payments appear straight away on your credit card I have had them happen within 5 mins and same card can take upto 3 days.
C) Your CC company does not flag it as suspicious behaviour and block your card

I have known people make a faster payment on their cc when there is not a balance on it maybe you could try that so if you have a cc limit of £1000 and a balance of £0 making a faster payment of £1000 essentially meaning you have overpaid your card so you will have your £1000 limit plus £1000 in overpayment.... Some companies may block the additional payment or not be very happy with you for doing so.

You could just see if they are willing to increase your limit.

FestiveJoy

Hoogle wrote: »

....

You could just see if they are willing to increase your limit.

+1

:xmastree::xmastree::xmastree:

Terry_Towelling

NickCZ wrote: »

Hi,

I’ll be changing a job in January for which I’ll need a car. I secured decent rate loan to cover this. However, dealer accepts credit card so I wanted to know if I can pay as much as possible on credit card, pay it off immediately and then use again. And repeat it until full value of the car is paid. Just asking as I could take advantage of cash back I’d get on credit card. Hope it makes sense?

Thanks in advance.

Have you actually asked the dealer if he is prepared to undertake such a process? Even if he were (hugely unlikely), you'd probably both find yourselves in the mire as your Issuer and his Acquirer would probably both notice unusual transaction patterns and set alarm bells ringing.

Robin9

So you're intending to go to the dealer one morning and pay (say) £3000 on your CC - go home - pay this off from the loan - go back to the dealer pay another CC - go home ----repeat ---- repeat

---

repeat

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repeat ?


I think the dealer will tell you (in a nice way) to take a running jump

meeshty

The most reliable advice will come from the credit card company themselves. Possibly different credit card companies will operate differently so I'd hate to see you get incorrect information and find yourself stuck when trying to make the second payment which may not work.

If you don't want to ask the CC company on the phone, you may be able to contact them by social media ie facebook, twitter or maybe if they have instant chat or a contact us form. I hope you get the answer to your question!

chattychappy

meeshty wrote: »

The most reliable advice will come from the credit card company themselves.

Oh if only that was true. Half the threads on this forum would disappear !!!

When it comes to fraud prevention, much of the process is unknown to operators. Even after the event, they cannot always tell what has happened.

That said, if a card gets blocked, operators can often unblock once a cardholder has phoned up to confirm all is OK.

fifeken

Call the card company and explain you want your credit limit raised temporarily, explain to them why and tell them the loan money will be used to pay it off immediately. Even better if the loan money is in an acccount with the same bank and they can see it there to back up your storey.
Pay for the car with the CC, pay it off and have them reset the credit limit.

[Deleted User]

I don’t think they do “temporary raises”