Can I manually increase a Credit Card Limit myself and APR interest help?

bery_451

Lets say for example my credit card has a credit limit of £1000 with £0 balance.

I like to increase limit to £2500 so can I transfer cash money lets say £1500 to my credit card to get it up to £2500?

After this shall I assume that whatever spending on my £1500 part on my credit card will be just like a debit card i.e. no interest?

Will this affect my credit rating in any way?

Lastly the purchases made on my £1500 will I get section 75 protection and can I open disputes or do credit card companies don't care unless it comes under their £1000?

Finally how credit card interest works? Is interest works out daily or monthly on purchases? And is it possible to avoid any interest at all on a credit card and how to do it?

Regarding car hire where the rental company reserves an security deposit amount from a credit card not actually charged the credit card like fetch or reserve then do I get charged interest for this?

boo_star

Putting your card into credit will be against the issuers terms and conditions and may result in your account being closed.

Also, "cash money", really? Are you an american rapper or something?

[Deleted User]

The lender will probably block or return such a large credit and may close your account.

If they don't, section 75 won't apply on purchases within that credit.

Interest is calculated daily and charged monthly. You avoid it by clearing in full each month and avoiding cash advances.

Ben8282

bery_451 wrote: »

Lets say for example my credit card has a credit limit of £1000 with £0 balance.

I like to increase limit to £2500 so can I transfer cash money lets say £1500 to my credit card to get it up to £2500? No this will breach the terms and conditions of the card account

After this shall I assume that whatever spending on my £1500 part on my credit card will be just like a debit card i.e. no interest? You would only pay interest on a debit balance

Will this affect my credit rating in any way? Not as such but may result in the account being closed

Lastly the purchases made on my £1500 will I get section 75 protection and can I open disputes or do credit card companies don't care unless it comes under their £1000?

Finally how credit card interest works? Is interest works out daily or monthly on purchases? And is it possible to avoid any interest at all on a credit card and how to do it? You will not be charged interest on purchases so long as you repay the full balance by the payment due date every month

Regarding car hire where the rental company reserves an security deposit amount from a credit card not actually charged the credit card like fetch or reserve then do I get charged interest for this? No

Hope that helps. Forget the idea of overpaying. If you want a higher credit limit apply to have it increased.

Terry_Towelling

Are you saying you want to overpay your credit card by £1500? Most card companies T&Cs will tell you that isn't permitted.

S75(4) CCA states that (credit card) purchases made in contravention of the T&Cs of the credit agreement can still qualify for S75 cover. I accept that purchases made when carrying a credit balance are not in themselves made in contravention of the T&Cs, but I'd be inclined to say that S75 cover would still apply. My reason for making this assertion is that you may have had an old purchase refunded by a retailer and be in credit as a result; it would be unfair to be denied S75 cover for transactions made whilst 'under the influence' of such credit.

If you want to dispute a credit card transaction, you just do it. To qualify for S75 cover you have to demonstrate the supplier of goods/services is in breach of contract. Whether you can or cannot do this, you may still have the protection of the card companies Chargeback mechanism. S75 cover applies when (amongst other things) you are buying something that costs more than £100. Chargeback protection is not subject to this minimum amount and applies equally to debit card transactions.

Interest is calculated daily and applied monthly. If you never carry a debit balance from one statement to the next (i.e. you always pay in full or are in credit) you will pay no interest, except for cash transactions. Most card companies charge a handling fee and interest from day 1 on cash and you will be charged it even if you do pay in full or are in credit.

If a car hire company 'reserves' an amount - by which I assume you mean they seek what is often known as a 'pre-auth' - the amount involved isn't actually charged to your account at that time; they are just checking you have the funds and that the card isn't blocked etc.

However, if they are taking a 'security deposit' (as you call it) that sounds like they are debiting your account. If such a transaction appears on a statement and, after making any required minimum payment, you don't fully clear any debit balance, you will be charged interest on your next statement. If you have (successfully) put a large credit balance on your account beforehand (unlikely) then any car hire deposit is unlikely to put you into debit anyway.

Why not just ask your card company for a temporary credit limit increase?

bery_451

Ok can anyone confirm section 75 is available to all credit card purchases whether the purchase was made on debit or in credit of the credit card?

So Interest is charged daily meaning whatever I buy on the day using my credit card I have to pay the debt straight away on the same day to avoid interest? Clearing the balance once a month is like every 30 days so I will I get charged 30 days interest?

If you can avoid paying interest on normal credit cards then what's the point of 0% APR Interest free purchases credit cards?

Ben8282

bery_451 wrote: »

Ok can anyone confirm section 75 is available to all credit card purchases whether the purchase was made on debit or in credit of the credit card?

Why are you so concerned about this? You have already been cautioned against your proposed action of putting your credit card account massively into credit. If you have some scheme in mind to make this large purchase and then make a s75 claim then forget it.

bery_451 wrote: »

So Interest is charged daily meaning whatever I buy on the day using my credit card I have to pay the debt straight away on the same day to avoid interest? Clearing the balance once a month is like every 30 days so I will I get charged 30 days interest?

Are you really so lacking in knowledge about how credit cards work? It has already been explained to you that you receive a statement once a month. If you pay the full balance of that statement by the payment due date, which is normally about 25 days after the statement date, you will not be charged interest on purchases. If you don't pay in full you will be charged interest.

bery_451 wrote: »

If you can avoid paying interest on normal credit cards then what's the point of 0% APR Interest free purchases credit cards?

You will be charged interest on purchases at 0% for the duration of the promotional offer irrespective of whether you repay in full each month or not.

Craig1981

OP, i assume you want to buy something on your credit card higher than your limit? if so, you can pay as little as £1 on credit card and remainder with cash/debit card to secure s75, so long as the item purchased is valued at more than £100.

so if you buying a car for £2000, put a deposit of £100 on credit card, the remainder with cash or debit card, and you will be protected with s75 on your credit card

The_Fat_Controller

I bought a car a year ago and Nationwide were quite happy for me to put a large credit on my account to do so.

I phoned them first and they said "no problem"

Credit limit was £10,000, car purchase was £15,300

PS. I got my 0.25% cashback on the whole amount.

Carrot007

The_Fat_Controller wrote: »

I bought a car a year ago and Nationwide were quite happy for me to put a large credit on my account to do so.

I phoned them first and they said "no problem"

Credit limit was £10,000, car purchase was £15,300

PS. I got my 0.25% cashback on the whole amount.

The differences here being.


1. You asked them (so they were aware you were using it quickly, rather than them say immidiately sending you a cheque or just reterning the money).


2. Have a presumably better card than one with a £1000 limit (that would be natuarally more cautious to odd activiety).

chattychappy

Terry_Towelling wrote: »

S75(4) CCA states that (credit card) purchases made in contravention of the T&Cs of the credit agreement can still qualify for S75 cover. I accept that purchases made when carrying a credit balance are not in themselves made in contravention of the T&Cs, but I'd be inclined to say that S75 cover would still apply.

Interesting argument. On balance I probably disagree.

As you say, applying
(4)This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.

the purchases themselves are not in contravention of the agreement. The contravention was to put the account into credit.

Section (1) says:
(1)If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement (my emphasis)

I think this is the problem. If a purchase is made entirely out of positive balance, then it isn't financed by the agreement.

Terry_Towelling wrote: »

My reason for making this assertion is that you may have had an old purchase refunded by a retailer and be in credit as a result; it would be unfair to be denied S75 cover for transactions made whilst 'under the influence' of such credit.

It might be unfair, but the law is written the way it is. Now, it might be the FCA would expect issuers to treat customers fairly - and in the circumstances you describe it would be unfair to deny a S75 claim. But just because you can imagine a circumstance in which it would be unfair to apply the law literally, doesn't mean the law is disapplied universally. I would argue this is particularly true where the cardholder has set out to "finance" the transaction himself by deliberately putting the account into credit before making the purchase.