Keeping Credit Card in credit ... good idea?

B

Beula1983

Registered User
Messages
10
I’ve never really used my credit card much and if I do I always pay it off st the end of the month.
During a recent conversation with a friend she told me she puts money on her card each month and keeps it in credit and she then uses it to pay for things like Christmas, birthdays etc .
I’m just wondering if this is a better idea for small amounts of cash “left over” at the end of the month it would I be better off putting the money into a short term savings account ?
 
The only reasons I can think of for keeping a credit balance on a credit card are:
- You need to make a large puchase in excess of your balance
- You plan to make cash withdrawals and wish to avoid advance fee
- You have to manually pay off the balance and concerned you might forget \ might be travelling and unable to transfer the funds securely
 
Beula1983 said:
I’ve never really used my credit card much and if I do I always pay it off st the end of the month.
During a recent conversation with a friend she told me she puts money on her card each month and keeps it in credit and she then uses it to pay for things like Christmas, birthdays etc .
I’m just wondering if this is a better idea for small amounts of cash “left over” at the end of the month it would I be better off putting the money into a short term savings account ?
Click to expand...

Better off putting the money into a savings account rather than using your credit card for surplus funds.
 
I had a credit limit on my card of circa €2.5k. Last year we were treating ourselves to business class flights to Hong Kong so I lodged €5k in to my Ulster Bank credit card.
I contacted Ulster Bank Credit Card company to let them know that there would be overseas transactions on our credit card. During the discussion I was told that I could not use the €5k in one transaction. I could only use the card in multiples of my credit limit. I was effectively told that I could not use my own money to purchase two tickets costing €5k. I had to book flights separately.

Yet again, more trouble with Ulster Bank. It never seems to end...... I practically lost it with them. In the end they were able to accommodate me by pushing a few buttons at their end.

Incidentally, I am not sure if purchases made with "credit" money comes under the guarantee scheme.
 
Also there is the chargeback facility whereby money gets refunded in certain cases (e.g. if the airline goes bust). You need to double check this, but as far as I know this scheme might only apply for purchases made on credit. Once an account is in credit, these purchases aren't technically made on credit and therefore might not qualify. The same distinction might apply for refunds on fraudulent transactions.
 
Last edited:
tomdublin said:
Not sure what "myth" you are referring to. Credit card chargeback exists in Ireland as well.
Click to expand...
"Scheme" chargeback applies equally to both Debit and Credit cards. These are Visa / MasterCard rules, and have absolutely no legislative basis. They're a set of rules that all scheme members sign up to.

There is an extra layer of protection in the UK through legislation (section 75), where the provider of credit (bank) also has a responsibility where goods are not supplied. The UK legislative protection applies only to credit.
 
RedOnion. Like a lot of your posts you seem to be contradicting yourself here or rowing back?
 
RedOnion said:
"Scheme" chargeback applies equally to both Debit and Credit cards. These are Visa / MasterCard rules, and have absolutely no legislative basis. They're a set of rules that all scheme members sign up to.

There is an extra layer of protection in the UK through legislation (section 75), where the provider of credit (bank) also has a responsibility where goods are not supplied. The UK legislative protection applies only to credit.
Click to expand...
I didn't say chargeback had a legislative basis (this isn't the subject of the thread) just that it exists in Ireland too. The issue relevant to the thread is whether as per provider rules customers are eligible for chargeback even if their account is in credit at the time of the purchase.
 
tomdublin said:
The issue relevant to the thread is whether as per provider rules customers are eligible for chargeback even if their account is in credit at the time of the purchase
Click to expand...
I'll make this simple.
It makes ABSOLUTELY NO DIFFERENCE whether card is in funds or credit is being used. The same scheme rules apply regardless.
 
You must log in or register to reply here.
Back
Top