Pre Paying Utilities on Credit Card

infinityx

I managed to get a credit card with 22 month 0% purchases and far larger credit limit than i anticipated. The only issue is purchases have to be made in 60days. I only needed 2k for a payment due soon and though it would be good to put it on a fee free credit card. I had another credit card on fee free which expires in November with a 2k balance. so was thinking of doing a balance transfer to this new card for I think 3%. So my New card would still have a credit limit of 5k available. But i dont anticipate any big payment in the next 6 months let alone 12 months. Since I only have 60days to use the limit for 0% I was thinking of over paying my energy bills for then next year. Would this work? Cant think of anything else (maybe council tax?). I dont want to buy things on credit that i dont need just because i have a larger limit that is just stupid but things like utilities and council tax will have to be paid in future anyway.

I have plenty of savings that i put in my ISA that if the need arises i can pay of my debt if the need arises so not worried about credit worthiness and i'm very particular about never missing payments of going over. 

elasto

I am with EDF and I did exactly that.

I have overpaid by about £1.3k and they have reduced my monthly direct debit to near zero for at least the next six months.

Some companies do return funds if you are in credit though (which would clearly defeat the object). I guess EDF is one of the ones that only does so if you ask.

infinityx

oh interesting. I am with scottish power its already in debit no idea why but is it best to ask them to refund that money and then then top up with my credit card or is it ok to top up now even though my account is in debit? what happens to my debit balance if i switch energy companies?  Im thinking of going to Octopus Energy.

elasto

Our situation is not really discussed but I think this is the most relevant blog post I could find:

https://blog.moneysavingexpert.com/2023/3/martin-lewis--energy-bill-credit---how-much-is-too-much--stop-th/

Looks like Scottish Power won't automatically refund an account in credit (which for us is good)

HillStreetBlues

https://www.scottishpower.co.uk/support-centre/refunds#i-do-not-pay-by--direct-debit-and-want-to-request-a-refund




What I would do, is overpay so you have a large credit,  ask for the credit back,  get a cheque, bank the cheque and earn interest on it.

WillPS

HillStreetBlues said:

https://www.scottishpower.co.uk/support-centre/refunds#i-do-not-pay-by--direct-debit-and-want-to-request-a-refund




What I would do, is overpay so you have a large credit,  ask for the credit back,  get a cheque, bank the cheque and earn interest on it.

They are within their rights to only return funds in the manner they were paid. Some suppliers might just process everything as a cash refund but some won't (quite rightly).