Credit Card in Credit

Isthisforreal99

My question would be why are you doing this OP? Maybe 10 years ago fee free debit cards were not out there but there a few now where you won't pay any fees for overseas use. And maybe some interest or cashback on top.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82115585#Comment_82115585

Not sure about the specific reason, but probably related to the fact that their processes will be oriented to being lenders rather than borrowers, and the regulatory environments for these are different.

ChangFai

Sometimes, ignorance is bliss 😐️

ChangFai

https://forums.moneysavingexpert.com/discussion/comment/82115597#Comment_82115597

The answer is, probably, that I just have always done it.

I bet I have been doing this for over 30 years, and no one ever told me I was doing anything wrong, or got pulled up for it.

65 years old, not great with change, but I am open to suggestions, thank you.

eskbanker

There are some benefits to using credit cards versus debit cards, such as section 75 protection, but ironically one of the main reasons many use a credit card is for cashflow purposes, whereas you've been completely inverting that by paying in advance!

retiredbanker1

https://forums.moneysavingexpert.com/discussion/comment/82115639#Comment_82115639

Not only that but technically if you do not 'borrow' on the card does this not disqualify you from S75 Cover?

CliveOfIndia

As other have said, deliberately putting a credit card into credit is against the T&Cs. In theory, the bank could close the account. In practice, it varies from lender to lender - some are more strict in enforcing the T&Cs than others. I suspect the amount and frequency may also play a part. Some banks will refuse to accept the attempted overpayment, some will immediately refund it, some will just let it go.

But I would ask the same question posed by a couple of others - why are you doing this? In this day and age of the internet, it's not difficult to make a payment to the card - should you need to - at any time. If you're finding your credit limit is not sufficient, you can always apply for an increase.

ChangFai

https://forums.moneysavingexpert.com/discussion/comment/82115673#Comment_82115673

I love a simple life.

I have no need for a Smart Phone.

So looking at alternatives, to once again this winter, of putting my credit card in credit, it would seem everything is app based.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82115671#Comment_82115671

I believe that's correct, yes - s75 provisions apply, inter alia, "in relation to a transaction financed by the [credit] agreement" so if the cardholder is using their own money rather than the card company's then this condition isn't met.

CliveOfIndia

https://forums.moneysavingexpert.com/discussion/comment/82115679#Comment_82115679

Again, why do you want to do this? Doing so has the potential for causing yourself a fair degree of hassle.

Just use a credit card the way it's intended to be used - buy stuff with it, set up a DD for the full amount each month, ensure you have a sufficient credit limit for your needs. Job done. If, as you say, you want a simple life then it doesn't get much simpler than that :-)