Creating and spending a credit balance on a credit card.

14
Posted 21st Oct
I'm told by Lloyds Bank that it's not possible to create a positive credit balance on a credit card.

For example, a card has a zero balance and a £2k limit. I'd have thought if I send a £1k CREDIT to the account then, once that payment has credited the account, I will then be able to buy an item costing £3k.

I don't see how this is any different to the scenario of buying a £1k TV from Argos and taking it back a fortnight later for a refund; if I'd paid my full balance off in the meantime, I'm end up with £1k credit balance on the card.

Lloyds tells me you can't do this. Had anyone done it successfully?

(The credit card in question is a new account and I can't apply for an increased limit for 6 months, apparently.)
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I've accidentally over paid by £20~30 a few times due to my direct debit taking minimum payment (A safety net in case I forget) with my MBNA card. Never had an issue but I know they don't like it. They could just auto refund you that amount?
All to do with money laundering laws I believe.
Ask the company you are buying from to accept payment over the phone/in-store and then split the payment across 2 cards.
Edited by: "SUMMONER" 21st Oct
I think the most you can go is -£100.

If you want to spend £3k then top up a Revolut or similar prepaid card with £3k and then spend it.
Edited by: "cmdr_elito" 21st Oct
if you're buying something of that value, you should be able to split it amongst cards (probably not if buying online) - I can't think of anywhere I've been told I can't use two methods of payment
I've got a credit card with about a quid positive balance, think it resulted from a recent refund after I had cleared the full statement balance. The credit card police obviously haven't caught up with me yet.
AndyRoyd21/10/2019 16:39

I've got a credit card with about a quid positive balance, think it …I've got a credit card with about a quid positive balance, think it resulted from a recent refund after I had cleared the full statement balance. The credit card police obviously haven't caught up with me yet.


Thats uncontrollable and probably happens to a lot of people so why would anything happen?

The OP is intentionally intending go above his credit limit. If it was for a small amount it prob wouldn't matter but large amount + on a new card? I'd be very surprised if it didn't get flagged or transaction blocked straight away.
This is not allowed unfortunately, it's really frustrating especially if you want to take a balance transfer and pay with positive balance every month.
I had created a positive balance on my CC £1900 (limit 10k) through a refund. It's a loophole and I guess CC companies aren't too fond of.
I worked in banking for many many many many years. If your credit card has a nil balance it should reject a credit payment. It won't reject a refund. if is has a debit balance it will probably let you overpay and create a credit balance.
Yes what you have stated is definitely possible, but why not just split across 2 cards?
I actually did this many many years ago to go a distance to buy a car and was not wanting to carry the cash but times have changed.
If you risk it, there is a chance the new complicated money laundering laws may kick in and the bank may be forced to freeze the card pending investigation, not something you will want to chance if planning a largish transaction.
Thanks for all the replies. It seems "preloading" credit doesn't work these days, at least not for significant sums, as many of you suggest.
I did it accidentally with my Halifax clarity a few months back. I bought a tv and paid that amount off the next day. They then took the full direct debit two weeks later so I was in credit by a few hundred (the price of the TV). I called them up and they said they can refund it which would take 5-7 days or if it was only a short amount of time and I'd be spending the balance shortly then not to worry about it but don't do it often. I mean it's their crap system that caused it not me anyway as apparently extra payments don't affect the direct debit amount anymore.
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