Using normal CC as a ‘top up’ CC

I want to keep a couple of CCs for various sensible reasons (protection, travelling, etc). However I don’t want the ability to owe money on them.

Currently they are maxed out (although I always make min pmts on time). I am moving house soon and can pay all debts off with sale of my house (woohoo). Being maxed out is oviously bad for my credit files.

So my idea is to have as low a credit limit as they will let me have (£0 ideally) and ‘top up’ wh n I get paid so I can spend on them with my own money.

But will this still have a bad effect on my credit files? I’m guessing I’ll put about £500 a month on them and just spend as I go.

Comments

  • You can't have a zero limit. That's a closed account.

    It's also against the terms to put the account in credit.

    You'll need to either use the credit card properly, or use your debit card instead. I'd suggest the former if you need to build a better credit history.
  • System
    System Posts: 178,077
    Photogenic Name Dropper First Post
    Community Admin
    You can't do what you're wanting to do however there are products that do do what you want to do. You can get pre-paid credit cards. With these there is no credit facility, you load money onto them then spend that. The downside is that you don't get Section 75 protection because you aren't being offered credit. However for controlling spending and definitely for travel they are worth having. If you go abroad the best one for you to use would be Revolut. Revolut charges no currency conversion fees, has excellent currency conversion rates (fractions of a cent below Mastercard rates), no charges for cash withdrawals from cash machines and you can transfer the balance to different currencies in an instant with a mobile phone app.

    I would keep a normal one for purchases over £100, getting them to lower the limit you currently have available, but I'd leave it at home and only take it out specifically to purchase an item over £100.

    As with all budgeting you're going to have to exercise some willpower, there is no magic fix, that is the only one. Only you can prevent yourself spending on a card.
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