Quick question about credit cards

Ricochet J · 9 Feb 2009 at 19:56

I've never had a credit card but currently just reading the pro's and cons of one. I'm particularly swayed at the added protection of credit cards from the company issuing it - which will come in handy since I am going to open an eBay account.

My question is, if my credit card is used for my PayPal account, and someone pays me into my credit card will I be charged for a positive balance?

This doesn’t seem to be explained anywhere.

Many thanks

Mucky_Pup · 9 Feb 2009 at 19:57

Will you gain credit to spend? Yes, I should think so, I'm not so sure because you're talking about paypal, but if you get a refund from other places to your card, it usually just comes up as credit.

Burnsy2023 · 9 Feb 2009 at 19:59

Yes you can, but credit card companies don't like you in a positive balance.

Ricochet J · 9 Feb 2009 at 20:02

Then my second question is in PayPal can I have two registered cards? Credit Card for paying, Debit Card for receiving?

Edit: Found what I am looking for on Yahoo Answers. Feel free to add anything else though.

A2Z · 9 Feb 2009 at 20:07

huh? when you have money in paypal...you can only withdraw it to a bank account...not credit, debit, or any card.

GingerNinja1989 · 9 Feb 2009 at 20:08

You won't get charged for having a positive balance. I like to make sure that I'm a little bit in the black on my account, just to be on the safe side. Only a quid or so

Burnsy2023 · 9 Feb 2009 at 20:33

GingerNinja1989 said:
You won't get charged for having a positive balance. I like to make sure that I'm a little bit in the black on my account, just to be on the safe side. Only a quid or so

That's a bad idea. Credit card companies can and do close accounts for that.

Origin · 9 Feb 2009 at 20:43

Burnsy2023 said:
That's a bad idea. Credit card companies can and do close accounts for that.

Serious question. Why can and why do they do that?

Burnsy2023 · 9 Feb 2009 at 20:56

Origin said:
Serious question. Why can and why do they do that?

It's written in the credit contract and they aren't earning any money from you, so why keep the account open?

jellybeard999 · 9 Feb 2009 at 20:59

They're a good idea IF you pay back promptly.

Origin · 9 Feb 2009 at 21:04

Burnsy2023 said:
It's written in the credit contract and they aren't earning any money from you, so why keep the account open?

Aah, fair enough. I don't have one so didn't know.
Thanks

Burnsy2023 · 9 Feb 2009 at 21:06

jellybeard999 said:
They're a good idea IF you pay back promptly.

Not necessarily. They're a good idea if your in control of your finances and can afford a small amount of interest payments per month.

Then you'll get a good credit rating. You won't be a valued customer if you don't pay any interest.

Kemik · 9 Feb 2009 at 21:10

So it's best not to pay off your balance at the end of each month? I'd rather pay off my debt than get charged interest just so it boosts my credit score a bit.

GingerNinja1989 · 9 Feb 2009 at 21:12

Burnsy2023 said:
That's a bad idea. Credit card companies can and do close accounts for that.

Really? Didn't know that. At the moment I'm 79p in credit, are they really going to close my account for that?

Energize · 9 Feb 2009 at 21:24

GingerNinja1989 said:
Really? Didn't know that. At the moment I'm 79p in credit, are they really going to close my account for that?

No, they only close accounts if someone doesn't make them any interest for ages, not for having a positive balance for a short time.

Burnsy2023 · 9 Feb 2009 at 23:50

Kemik said:
So it's best not to pay off your balance at the end of each month? I'd rather pay off my debt than get charged interest just so it boosts my credit score a bit.

Paying off the balance doesn't help you credit score as much as paying interest on it.

Burnsy2023 · 9 Feb 2009 at 23:51

Energize said:
No, they only close accounts if someone doesn't make them any interest for ages, not for having a positive balance for a short time.

Ages can be a short at 6 months for some CC companies (having a positive balance that is)