Credit Card in Credit

ChangFai

Are all Credit Card companies happy if you have your Credit Card in credit?

I spend a couple of months overseas in the winter, and for a long time I have added around £1000 onto my Halifax Clarity Card, and use that when purchasing goods, supermarket shopping etc. without any problems.

I have became very dissatisfied with Halifax recently, and I would like to apply for another Credit Card from another provider.

Are there a Credit Card companies out there, that do not allow this?

I did a search on this subject and could not find anything.

Any advice on this subject, would be most welcome.

eskbanker

Halifax don't allow it:

You mustn’t pay more than you owe when you make payments to your account, or transfer money from another credit or store card if this creates a credit balance on your account.

https://www.halifax.co.uk/assets/pdf/creditcards/pdf/terms-and-conditions/clarity-terms-and-conditions.pdf

Other credit cards will have similar terms - whether or not they enforce them rigidly is another matter though…

la531983

Real world experience - some wont mind (although never as much as a grand). Some will get ratty and say spend it up. Some will immediately send it back to you.

ChangFai

https://forums.moneysavingexpert.com/discussion/comment/82115544#Comment_82115544

Yet, I have done this, for at least 10 years, without any problems.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82115547#Comment_82115547

Yes, hence the point about enforcement - as above, they'll all have clauses stating that it's not permitted, but if you choose to breach the terms, you might get away with it or you might not…

horsewithnoname

I think egg money (those were the days!) was the only card that ever positively allowed it; others, as you have found out, may tolerate it.

flaneurs_lobster

RBS got quite agitated when my CC went into credit because of a 3-figure refund.

Contacted me to confirm that the balance would be reduced to zero and the excess paid to my current account.

Brie

I've had a Santander card for decades and often had it in credit as it's used when we travel abroad. Add to that there's a low limit on it so not enough to pay for a week away some place nice on the continent. So I set up payments to happen during the holiday and that often means it's in credit for a couple of days. It's never been a problem. There's never been an automatic bounce back. I've been messaged a couple of times to tell me there's a credit but then I reply "I've just spent £XXXX." and it's all ok.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82115552#Comment_82115552

That seems harsh - to me there's a difference between a merchant refund putting you into credit versus deliberately and knowingly making an excessive payment to the account, and it's the latter that will generally be covered in Ts & Cs.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82115576#Comment_82115576

It was quite some time ago, and the credit limit was probably just about £1k. Did seem rather an over reaction.

Is there a particular reason why CCs being deliberately funded into credit is such a no-no?

retiredbanker1

Only recently Halifax Clarity refused to accept statement balance payment because a refund had brought the balance down - you can only pay what you owe no more.