Credit Card Loans

thedaisycutter

I've just read this page on using credit cards instead of loans. As an alternative to this, one method I've used before is to transfer the balance to the card I use as a regular purchasing card, so that this card now has a positive balance. I then asked the card company to send me a cheque so my account is no longer in credit.

I understand that credit cards are not intended to carry a positive balance, and that the positive balance is not covered against fraud. Apart from this is there any reason I can't do this again, or why its a bad idea?

Bokkens

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

If you read this all shall become clear.
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thedaisycutter

Thanks, I;d already read the article but am not sure how it helps. My apologies if I'm missing something obvious. I know I could use a card that allows me to transfer to a current account as an alternative, but this would mean waiting for another application and having an extra card, and if already got a few.

Thanks,

Sam

YorkshireBoy

thedaisycutter wrote: »

...if I'm missing something obvious.

HBOS (who run a lot of cards!) T&C's forbid the creation of a positive balance. They say they may return the funds from whence they came, meaning you may have paid a BT fee for nothing.

Worse, they have been known (as reported on here) to block the card until their AML team have investigated the account conduct, especially if you make a habit of the practice.