Large one-off payment

Reed_Richards

I need to make a large one-off payment in excess of my credit limit but I would like to pay by credit card for the protections this offers. If I first deposit the money I need to pay into my card account will I then be able to make the payment? Or, put another way, is the "credit limit" also a payment limit?

[Deleted User]

It's risky, as they may return the money and/ or close your account.

Some cards also use the credit limit as a maximum transaction value.

Have you tried asking for an increase?

dresdendave

Creating a credit balance on your card is usually against the T&C's and could get the card blocked. To get S75 protection you only need to part pay for an item, the balance could then be paid by debit card, bank transfer etc.

Rainbowgirl84

You do not need to pay it all by credit card to get the protection, even paying as little as £1 gives you protection for the full amount.

Reed_Richards

Thanks all, that's really useful advice.

The_Fat_Controller

I had no problem front-loading a Nationwide card to fund the purchase of a car, however I did call them first to check it was possible.

Got the credit card protection as well as some cashback !

SuperAllyB

The_Fat_Controller wrote: »

I had no problem front-loading a Nationwide card to fund the purchase of a car, however I did call them first to check it was possible.

Got the credit card protection as well as some cashback !

I have absolutely no direct knowledge but I seem to recall reading somewhere that using a credit balance on a credit card invalidated any S75 protection?

eco_warrior

Reed_Richards wrote: »

I need to make a large one-off payment in excess of my credit limit but I would like to pay by credit card for the protections this offers. If I first deposit the money I need to pay into my card account will I then be able to make the payment? Or, put another way, is the "credit limit" also a payment limit?

A complex question. So much so I’d say it’s impossible for anyone on here to give a full proof answer.

That said

I’ve known credit card systems to allow and also not allow transactions that exceed the credit limit, even when the credit balance affords the purchase.

Regarding s75. Using a credit balance only should (imo) invalidate any claim as you aren’t using the credit facility. Using a mix of front loaded and credit could be ok. You’d also need the bank to actually check for this which they might not even bother doing.

Lastly, the “protection” offered is subject to many things, it’s no guarantee when it comes to s75.

Chargebacks are not affected by credit balance purchases and are much more likely to be helpful imo.

18cc

Good advice from eco-warrior

the reason you get section 75 protection at all is because you are using a credit facility

so if for example you front load your card with £3,000 and then spend £2,900 and that is all you do in a statement period then it could be argued that you are not using any credit and therefore not entitled to section 75

as said above whether card issuer actually checks this is another matter altogether