Credit card

[ozzywizard]

Can I have some advise please on credit cards, I have just received a capital one card with 500 credit. I wish to save up for my holidays. Is it possible to save up on this card, for example if I transfer 50 a week to this card in 4 weeks it will be 700, not really had any dealings with credit cards so not sure if it can be used for saving short term, are you allowed over your limit ?

[ReasonableRon]

Can I have some advise please on credit cards, I have just received a capital one card with 500 credit. I wish to save up for my holidays. Is it possible to save up on this card, for example if I transfer 50 a week to this card in 4 weeks it will be 700, not really had any dealings with credit cards so not sure if it can be used for saving short term, are you allowed over your limit ?

A credit card is not a savings device. You card allows you to BORROW up to £500 in return for whatever rate of interest they are charging.

 

If you want to save £50 per week then transfer it into a savings account and earn a bit of interest on it.

[ozzywizard]

Its not going to earn interest as its only going to be there for a very short period of time, it would just be more convenient to have all holiday finds in the same place. Also if it was kept in my normal account it would not get saved up.

[Chesterexpress]

Yes you can do what your proposing, however it really isn't advisable to do so and most credit card companies do not like you doing so. If it is only going to be for a few weeks then it won't really do any harm.

[davethorp]

I've overpaid a capital one card before but only for about £10. All that happened was my account showed as having a credit balance and this balance was used before my credit limit

[electron99]

I have (or rather had) an Egg Money Card.As well as being a credit card, if you have a positive balance it pays 4% interest. Other lenders may have similar cards. Do not touch the Egg card with a proverbial barge pole.Their ideas on ethical trading are non existent.

[ozzywizard]

That is great advise from you all, thanks heaps. I know it is an unusual request and not idea and not somthing I plan on doing long term just suits my needs for the next 6 weeks or so whilst saving for hols. I just wanted to check their was no risk in doing so and your ideas on it.

[patdavies]

One thing that you should be aware of is that you cannot get a authorisation that exceeds your credit limit, even of the card is in credit.

 

For example, if you have a card with a £500 credit limit and a £200 positive balance, you cannot get authorisation for a charge of £550.

[big blue one]

some companies do travel money cards i believe...

[big blue one]

http://www.postoffice.co.uk/portal/po/jump1?catId=19300207&mediaId=26800661

[Holdred]

This practise also raises suspicions for the credit card company as this is one of the ways money can be laundered. I'd personally not advise it as it could cause more problems than it's worth.

[indebtstudent]

You say you are going on holiday but you didn't say where.

 

I don't know what your credit file is like but I know several companies offer cards where you are not charged for paying in a foreign currency. If you are not going abroad this is not an issue but I do wonder why you don't simply have a debit card?

 

You can still make purchases on your credit card and pay the bill from the current account.

 

If you are going abroad you lose out three or four times by using any old credit card as opposed to the best buys.

[ozzywizard]

Thanks heaps for all the advise, I am not going abroard so not an issue.

[Conniff]

If you are likely to be relying on this £200 I don't think I would do it as the 'withdrawl' limit might still be £500 and then it would leave you short.

[Guest wino]

I use internet banking and have opened up on line an internet savings account. I just transfer money into it each month. The only way to get at it is to transfer it back to another account then withdrawer by the usual methods. I'm saving for my first holiday in 12 years. This works for me.

[Clare_L]

What about using one of these? A prepay credit card? Just like a pay as you go phone. Put as much money on the card as you like and use it like a credit card.

 

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