Spreading payment for cc purchase that exceeds limit?

NeutralHandle

Say my cc limit is 9k and I want to buy something for 15k. So I put 6k extra into my cc account and that gives me 15k credit to make the purchase.

My cc has the facility to spread payments for large purchases. So I say I want to repay the 15k purchase over 12 months, instead of one (at a good interest rate).

Can I do that? Or is it assumed that the "large purchase" will be less than the credit limit?

Atlantic Dawn

What will happen is when you add the €6k and buy the item the balance to repay will be €9k. You would need to have your own credit limit increased to €15k if you won't to repay the whole amount instead.

Jim2007

Borrowing large amounts of money on a credit card is never a good idea, both from an interest rate point of view and a behaviour point of view. If the underwriters are will to cover your 9k limit, there should be a good chance of you being able to get a loan on a better rate and with a more disciplined payback approach.

NeutralHandle

6.9% apr specifically on large purchases spread this way on boi ccs. Think that is a decent rate for the sort of sum and term I'm looking at.

https://personalbanking.bankofireland.com/borrow/credit-cards/instalment-plan/

Restricting the amount that can be spread to the limit makes sense alright.

AnRothar

If you have 6K already why not just borrow 9K?

Less money borrowed usually means less interest repaid.

NeutralHandle

I think that's effectively what I would be doing, based on the first reply.