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  • FIRST POST
    • chattychappy
    • By chattychappy 13th Feb 18, 11:32 PM
    • 6,724Posts
    • 3,628Thanks
    chattychappy
    Pre-loading CC - your experience
    • #1
    • 13th Feb 18, 11:32 PM
    Pre-loading CC - your experience 13th Feb 18 at 11:32 PM
    I regularly use Zero/Clarity to obtain foreign cash overseas. By regularly, I mean weekly, sometimes daily but always at least a couple of times a month.

    Typically I pay off the withdrawn amount a couple of days later so I pay only pence in interest.

    The question often comes up "can I pre-load my CC to avoid paying interest?". The answers are usually:

    1) It's against your T+Cs
    2) It's not worth the risk of getting your card blocked/cancelled
    3) It will only be a few pence anyway.

    Consumer lending follows a different regulatory regime to deposit taking, so CCs really aren't meant to allow people to run positive balances.

    Given the question is always being asked, I wonder what peope's real experience of doing it is...

    In my case, I accidentally sent an extra 800 to Santander Zero 3 weeks ago. I only just noticed and have made 3 ATM withdrawals in the meantime without a hitch.
Page 1
    • guesswho2000
    • By guesswho2000 14th Feb 18, 4:52 AM
    • 1,558 Posts
    • 735 Thanks
    guesswho2000
    • #2
    • 14th Feb 18, 4:52 AM
    • #2
    • 14th Feb 18, 4:52 AM
    I regularly use Zero/Clarity to obtain foreign cash overseas. By regularly, I mean weekly, sometimes daily but always at least a couple of times a month.

    Typically I pay off the withdrawn amount a couple of days later so I pay only pence in interest.

    The question often comes up "can I pre-load my CC to avoid paying interest?". The answers are usually:

    1) It's against your T+Cs
    2) It's not worth the risk of getting your card blocked/cancelled
    3) It will only be a few pence anyway.

    Consumer lending follows a different regulatory regime to deposit taking, so CCs really aren't meant to allow people to run positive balances.

    Given the question is always being asked, I wonder what peope's real experience of doing it is...

    In my case, I accidentally sent an extra 800 to Santander Zero 3 weeks ago. I only just noticed and have made 3 ATM withdrawals in the meantime without a hitch.
    Originally posted by chattychappy


    I did it many years ago when I wanted cheap cash to buy a car. Barclaycard offered 6.9% for life BTs with no fee, so I transferred a several thousand pound "balance" from NatWest, resulting in the NW card being in credit, which I then asked them to txfer to my current account.


    No issues whatsoever. Though I definitely wouldn't recommend that course of action, I wasn't doing anything illegal, so the worst I expected was a block or funds returning, I considered it worth a try at the time!
    • agrinnall
    • By agrinnall 14th Feb 18, 8:45 AM
    • 19,913 Posts
    • 15,623 Thanks
    agrinnall
    • #3
    • 14th Feb 18, 8:45 AM
    • #3
    • 14th Feb 18, 8:45 AM
    Other than the possibility (which seems quite remote) of the card being blocked or even cancelled, I think the main issue is that one that you hint at of not having S75 protection if you make a purchase using funds that had put the card into credit. Whether this has ever happened is, I guess, one of the things that you're trying to find out in this thread.
    • T-G-C
    • By T-G-C 14th Feb 18, 11:02 AM
    • 129 Posts
    • 57 Thanks
    T-G-C
    • #4
    • 14th Feb 18, 11:02 AM
    • #4
    • 14th Feb 18, 11:02 AM
    If it is a reasonable amount and for a short period of time, Capital One will allow the credit balance to sit until consumed.

    That being said, it should not be a frequent practice nor one of excessive volume. Due to how credit cards operate, it is a serious violation to put them into credit intentionally.

    In some circumstances, where there is a refund or small overpayment, the provider will often work with the customer to remove the credit balance ASAP. Where there is evidence of fraud, intentional credit or a frequent occurrence, there are grounds for the lender to terminate their credit agreement with you.

    The overall advice is to avoid being in credit -- and where it happens, work with the provider to correct the balance ASAP to avoid unnecessary infraction.

    If wanting to avoid interest through spending a positive balance on a credit card, use a debit card instead, which is designed for such. As Section 75 protection does not apply, there is no benefit to avoiding a debit card.
    All advice provided is intended for guidance purposes only. For specialized debt advice, please contact either National Debtline or StepChange.
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