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Credit Card in Credit
Comments
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Tried to open an account through website, and …
Head to the first direct App to get started
Or scan the QR code to download it to your device
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That’s not strictly true. They won’t allow a single payment that’s more than the statement balance, but if like me you split the credit card payment across various sinking fund accounts, each one less than the statement balance, the total can be greater than the statement balance. I’ve accidentally gone over by a small amount on occasion with no consequences (usually due to a refund).
I suppose one reason they don’t like it is you could thwart the credit limit that way, as in you have a limit of £5k, you overpay by £1k one month and then next month make a £6k purchase. I can imagine they wouldn’t want that.
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Being in credit due to a refund is not a problem with any card - it's deliberately putting it in credit by making overpayments yourself than can cause issues with some cards.
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Depends how you define problem. I didn't have a problem with it being a positive balance, Amex did as they refunded the balance.
Let's Be Careful Out There0 -
You can phone up since theyre a phone based bank
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It has not happened to me often, however most credit cards will tolerate a modest positive balance in practice even though it is against standard Ts&Cs.
One that hasn't for me is the M&S card - our monthly regular rewards fee is due on the 3rd of the month so I set up a Direct Debit from our bank to cover this on same date - the payment was bounced back.
I revised the date to the 5th of the month - problem resolved.
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You can do a BT off the card for more than the balance, they can't stop that per se, but might reject it of course!
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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There are reasons for putting a credit card into credit. Some transactions, notably car hire, insist on a credit card and if you are abroad you cannot be sure that an app will work, and there may be no access to other facilities.
Consequently if you are expecting to pay out more than your credit card limit, paying your card into credit becomes a sensible arrangement.
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This is definitely not a legitimate practice!
The sensible approach is to have (at least) a second credit card, so one can be for the car hire deposit and the other (or preferably others) for spending.
If you want a card that already has money "on it", use a bank account with a debit card.
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If you put your credit card in credit you COULD find it blocked so this advice is wrong IMO.
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