Credit Card - "Increase" credit limit

Ecnurev

Hi,

I am a Lloyds Bank customer and recently got my first credit card with a £800 limit.

The main reason I wanted the credit card for was to rent cars for my holidays. There are not many car rental companies that accept debit cards.

The first time I used it, the car rental company wanted to freeze £1,200 pounds, which was beyond my credit limit and therefore were unable to do so. Talking to a friend of mine about this (she's a Lloyds client too) she told me that she had the same issue. However she found out that you can transfer money from your current account to the credit card's account to make up for the difference. Like this the car rental company is able to freeze the full amount.

To make sure this was right, I called Lloyds and asked about it. They didn't seem to like the idea, although all they said was that the payment could be rejected (they were not able to provide more information on this). Personally, the feeling I got was more that they didn't like the idea of people doing that.

Has anyone done this "trick" before?

[Deleted User]

Many people have done this "trick" before.

Some have had their accounts frozen or closed for a breach of terms, some have got away with it.

It's up to you if you want to roll the dice, but I would be very careful if this is your only card.

Ecnurev

Deleted_User wrote: »

Many people have done this "trick" before.

Some have had their accounts frozen or closed for a breach of terms, some have got away with it.

It's up to you if you want to roll the dice, but I would be very careful if this is your only card.

That's the thing. I spoke with some in the Lloyds credit card team and they never mentioned anything about breaching the terms and conditions. They just advised me against doing it, but nothing else.

[Deleted User]

It's a breach - have a look at your terms and conditions.

Credit cards doesn't operate under a deposit taking licence, which is why it's not allowed.

T-G-C

You cannot abuse the card in such a manner. As the other poster has said, a credit card is not intended to be in a positive balance, or in other words, above the allocated credit limit. Unless otherwise stated, this is considered a breach and allows them to refuse all transactions that would consume the extra amount. You could be adding the funds to then have it frozen, plus having to go through the process of having it re-paid back to you through cheque or otherwise.

You are welcome to make unlimited payments to bring the account up-to £800 where credit has been consumed, but not to use it as a debit card with a credit facility. A credit card is favored for payment security in the scenario such as yours, but through conventional means, rather than swings and roundabouts.

If you cannot resolve the issue through conventional means, such as an increase in credit, then I am afraid there is no other option for that particular account.

Duckyduck

Requesting an increase to your credit limit would be a better way to go about it. Once you have had the card for 6 months and been managing it should be a straightforward request, or ask them for a temporary increase to cover the expected cost.

Ecnurev

Deleted_User wrote: »

It's a breach - have a look at your terms and conditions.

T-G-C wrote: »

You cannot abuse the card in such a manner.

Duckyduck wrote: »

Requesting an increase to your credit limit would be a better way to go about it. Once you have had the card for 6 months and been managing it should be a straightforward request, or ask them for a temporary increase to cover the expected cost.

Thanks for your help.

As I got my last credit limit increase quite recently I don't think they'll be willing to increase it again now. I guess the only option for now might be to ask for a temporary increase...

A4445

I don’t think that’s a good idea. You could try MBNA, Halifax or Nationwide. They give an estimated limit before you apply. You could see if they will give,you a better limit.

Lloyds will increase your limit rapidly if use the card regularly. I stayed with a 1k limit with Lloyds it was increased rapidly It got to 10k and I stopped them increasing at the point as it was getting too high in my opinion.

Marcio45

Maybee consider the rent a car that you use. Depending on destination there are some that dont block such a high deposit. I have had deposits of 300 and 400 blocked on the card with some rent a cars, so your low credit limit wouldnt be an issue. For rentacars have a look at Zest car rental (brooker) as they are very clear how much deposit you need.