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Effect of a Positive Balance on Credit Card

Little helper

Effect of a Positive Balance on Credit Card

I recently had to cancel a hotel room and the refund will be returned to the card that was originally used for payment - in this case my Tesco credit card.

 

This will result in having a positive balance, probably of ~£500. By the end of the statement period, I would expect to have a negative balance like normal (we will spend more than £500 during the remainder of the period).

 

Will having a temporary positive balance cause any issues?

 

Thank you!

8 REPLIES 8
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Here to help

Re: Effect of a Positive Balance on Credit Card

Hi Hermann, I had exactly the same thing back in January. As I had a nil balance I then had £500 re-credited back onto my card. This meant I had my usual credit limit as well as an additional £500. I continued to use my credit card as usual and as I did so the £500 kept reducing until I'd spent it, it didn't take long!!!

I suppose as an alternative you could ask Tesco for a refund if you wish.

 

 

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Little helper

Re: Effect of a Positive Balance on Credit Card

Hi 25H - thank you very much for responding. Your situation sounds identical so that is reassuring!

 

I didn't suspect it would cause a problem, especially as we would spend more than the £500 in a single month anyway. However, I read a few warnings online about some companies not liking it when you have a positive balance and that it can apparently raise some red flags.

 

Fingers crossed there will no issues.

 

Thanks again!

 

 

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Little helper

Re: Effect of a Positive Balance on Credit Card

I too have a credit balance on my credit card and as I have a savings account with Tesco I was going to transfer my credit balance to this account.   To my horror, under the present rules, I would be charged a bit over 2%  to do this.      I would hope, making this situation public on this site, Tesco's would change their rules and allow their clients to make the transferring of surplus funds on a credit card to be free of any charge.      I must add My wife was delighted to receive a bouquet of flowers, free of charge from our local store in Bury St Edmunds when a friend from our local church collected grocery items for us as we are confined to our bungalow.    Many thanks mac5

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Here to help

Re: Effect of a Positive Balance on Credit Card

Good morning Hermann,

I too have heard of some companies not liking the positive balance and I did think it might get sent to my bank account I pay my credit card bill from but it didn't happen so I just spent on my card as usual using the positive balance. Infact it was a nice feeling spending and knowing it was comming off my positive balance.

 

Happy spending :-))

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Here to help

Re: Effect of a Positive Balance on Credit Card

Good morning mac5,

 

How sweet and lovely it was for your wife to get a bouquet of flowers.

 

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Pitching in

Re: Effect of a Positive Balance on Credit Card

It is usually against the Terms and Conditions of a credit card to go into a positive limit but in such exceptional circumstances you can use the card for spending to reduce the amount you are in credit by.

Otherwise I would, in future, advise calling Customer Services and asking for a refund-you would see a Money Transfer Fee originally but this would be refunded within seven to ten days.

I think I once read on Money Saving Expert never to use a positive balance for Section 75 protection as you wouldn’t be covered.
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Here to help

Re: Effect of a Positive Balance on Credit Card

Yes I think it effected my credit score, I always pay my balance in full every month and I always round it off, so if it was 1536 pounds I would pay 1600 pounds and always had a positive balance. I'm Glad I read this post and I can now rectify my misdoings.

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Your Community Expert

Re: Effect of a Positive Balance on Credit Card

Hi there guys, 

 

We would recommend getting in touch with our Credit Card Team on 0345 300 4278 and we'll be able to refund any credit balance to your current account. 

 

This will show a charge on your statement, although this will be refunded to you within 7-10 business days as long as it is only the credit balance that is transferred to your account. 

 

I hope this helps!