Topping up your credit card above your limit to purchase something?

kleinsherry

Hi i have a Halifax One credit card and my limit is set at £500 i would like to buy something for over this amount on my credit card so that i can get the Visa warranty protection for 2 years for a laptop.
I have applied to have my credit card limit raised but because i have not been using my credit card much since i have had it they declined raising my limit.

I would like to know is it ok to top up my credit card to the amount that i would like to purchase something if my limit is not enough? I would intend to pay it back instantly.

Symbeaux1

I don't think you can top it up past it's limit. But having said that I have been in credit with credit cards before.... having done a balance transfer (badly calculated!) so it may well be possible.

antuk

Ive heard before that if you buy something on a credit card while its in credit you dont benefit from any of the credit card protections as your actually spending your own money rather than the banks....

Moggles_2

kleinsherry wrote: »

I have a Halifax One credit card and my limit is set at £500. I would like to buy something for over this amount on my credit card so that I can get the Visa warranty protection for 2 years for a laptop. I have applied to have my credit card limit raised but ...they declined. Is it ok to top up my credit card to the amount that I would like to purchase something if my limit is not enough? I would intend to pay it back instantly.

Credit cards are not designed to carry a positive balance, so this would be frowned on by most lenders.

Halifax Ts & Cs specifically exclude the practice:
"You must not make payments (or transfer funds from another credit or store card to your account) that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent."

One of the reasons is that the customer's money is not insured. Also, section 75 wouldn't apply, because it's not credit.

YorkshireBoy

Halifax forbid it in the T&C's...

7.6 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account.

Others have reported their Halifax cards being blocked and flagged up for further investigation when pre-loading as you propose.

You don't need to put the whole cost on the card to enjoy section 75 protection (if that's what you meant by "Visa warranty protection"), just a deposit or partial payment (so long as the total cost is over £100 [and less than £30K I think])

noh

kleinsherry wrote: »

Hi i have a Halifax One credit card and my limit is set at £500 i would like to buy something for over this amount on my credit card so that i can get the Visa warranty protection for 2 years for a laptop.
I have applied to have my credit card limit raised but because i have not been using my credit card much since i have had it they declined raising my limit.

I would like to know is it ok to top up my credit card to the amount that i would like to purchase something if my limit is not enough? I would intend to pay it back instantly.

Halifax T+Cs say you must not put your card in credit.

"7.6 You must not make payments or transfer funds from another credit or store card to your account that would leave a credit balance on your account. We may return any funds that exceed the balance owing on your account to the account from which the money has been sent."

http://www.halifax.co.uk/creditcards/conditions_7448.asp

Edit:- done it again must type quicker and spend less time looking for links!

Nigel

Moggles_2

Originally Posted by Symbeaux1
I have been in credit with credit cards before.... having done a balance transfer (badly calculated!), so it may well be possible.

Can you recall which lender was involved? I bet it wasn't Halifax.

An horrendous story was posted on this board last year involving a honeymooner who had topped up his/her Halifax card to increase the couple's spending power whilst abroad. Within days the Hally had blocked the card which, needless to say, ruined their honeymoon in the USA.

kleinsherry

Thank you all for your help. It looks like i won't be doing that then but i may just try to use it as part payment as Yorkshireboy suggested.

kleinsherry

I should imagine that it is quite hard to get some places to accept payment on two different cards for an item. I am thinking about buying a computer new from Amazon.com that costs more than my VISA limit.

Also, i don't know if VISA would recognise ebay purchases?

Thanks

Megalomaniac

If you are in a shop, they may accept part cash, part card. Back in the day when I worked for Dixons, we accepted part cash, part card without any problems. May be worh asking the shop, however, if you paid for half your computer by cash, in the case of a warranty break down with the credit company, they may question the transaction.

skyrider007

This practice is fine for AMEX charge card. I have done it before and never had any problem.