Credit card in credit ?

Couchwarrior

Can i overpay my credit card a large amount to put me in credit ? The reason i ask is for example if i want to pay something that is £3k and my cards limit is only £2k could i make a payment of £1k on the card putting me into credit so i can spend £3k on it, so i can buy something online and get the credit card protection , would this be an acceptable thing to do ?

NickX

Some Credit Companies do not like you putting the account into Credit, one noteable exception is Egg Money which is actually designed to be put into Credit.

I would advise contacting the Credit Card Company beforehand and explain the transaction that you want to make. Hopefully they will be ok with it, but the fact you have warned them will stop the anti money laundering alarm bells ringing.

Just to let you know you do not have to use the Credit Card for the full purchase price of an item to benefit from Section 75 protection, you actually only need to put a minimum of £100 on the card, so you don't actually need to use the card for the full Purchase price in this case.

Hope this helps.

Megalomaniac

Good idea. Ring up your card company and ask, they shouldn't, in theory, have a problem with it.

lisyloo

Can i overpay my credit card a large amount to put me in credit ?

You can but I'd be very careful about doing it for anything but a very short period.

Credit balances are not insured.
So if YOUR money is stolen e.g. fraud then you may not be covered by the card scheme.
Some companies e.g. Nationwide insure THEIR money i.e. debit balances but do not insure YOUR money e.g. credit balances.

If you are doing it for a one off purchase then it's probably a small risk, but I generally advise against people doing it so that they take money out on holiday.
Obviously to find out your lenders policy you'd have to call them, but that's what Nationwide told me (and I triple checked to amke sure I'd understood correctly).

Couchwarrior

thanks i will contact them first if i do decide to do this , and it will actually be egg money

NickX

If Egg Money, then no problem it is actually designed to be put into Credit at certain times.