Can I overpay on my credit card to raise my limit?

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kcm7
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Can I overpay on my credit card to raise my limit?

Postby kcm7 » Wed Jul 23, 2014 10:16 am

I'm booking flights for a group of four traveling together, and I want to use my Barclaycard Arrival card to do it, to get a bunch of rewards points. Everyone has already written me a check for their part, so I've got the money in my bank account ready to pay it all off.

Thing is, my limit is $5,000, and the flights are going to be about $1,300 each. So that comes to $5,200.

I have a small balance on my card now. Could I potentially just pay that balance to zero and then add an extra $200 on there to bump up my credit limit enough to buy all the flights at once?

Thanks!
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woogs
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Postby woogs » Wed Jul 23, 2014 10:43 am

You will get mixed responses here, but it should work for a few reasons.

1) You are only trying to do an extra $200 (or maybe a little more)
2) You will charge something fairly soon, rather than months later when the bank may automatically mail you a check.

I never tried this on Barclays to see if they let you over pay your balance electronically. If not, you can always use your bank's online bill payment and send them a payment.

I have had negative balances on Amex, Citi, and Chase without any issues.
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onion
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Postby onion » Wed Jul 23, 2014 1:20 pm

I've had negative balance on my BoA card ($120) with no issues. I'd give it a shot, there shouldn't be an issue.

You could also just pay $5000 with the Arrival and put $200 on another card.
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Darrvao777
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Postby Darrvao777 » Wed Jul 23, 2014 3:01 pm

Does this only work for small sums?

For instance if I have a credit limit of 15k but wanted to make a 25k purchase, can I prepay 10k or is that considered odd and suspicious behavior?

Would I be better off using a charge card instead of a credit card in that case? Thanks!
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onion
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Postby onion » Wed Jul 23, 2014 7:21 pm

Darrvao777 wrote:Does this only work for small sums?

For instance if I have a credit limit of 15k but wanted to make a 25k purchase, can I prepay 10k or is that considered odd and suspicious behavior?

Would I be better off using a charge card instead of a credit card in that case? Thanks!


I'm assuming it would only work with small sums. I can't possibly see a case where you overpay by thousands of dollars and not raise any red flags. On the other hand, you could buy something for $10,000 and then return it, which should put you at -$10,000. I had negative balance once from doing that, but with a much smaller sum.
FICO TU - 728 - 8/14

FICO EX - 716 - 7/14

FICO EQ - 740 - 7/14



Bank of America Cash Rewards - $2,400

Best Buy - $3,000

American Express Blue Cash Everyday - $8,000

American Express Everyday - $10,000

Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)

American Express Platinum - NPSL

Barclaycard Arrival+ - $3,000

Capital One Yamacard - $11,000

flan
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Postby flan » Wed Jul 23, 2014 9:51 pm

kcm7 wrote:I'm booking flights for a group of four traveling together, and I want to use my Barclaycard Arrival card to do it, to get a bunch of rewards points. Everyone has already written me a check for their part, so I've got the money in my bank account ready to pay it all off.

Thing is, my limit is $5,000, and the flights are going to be about $1,300 each. So that comes to $5,200.

I have a small balance on my card now. Could I potentially just pay that balance to zero and then add an extra $200 on there to bump up my credit limit enough to buy all the flights at once?

Thanks!


Call barclay's, talk to a human. See what they say. Worst case, they say "sucks to be you" and send the Barclay's Bear[1] after you. It's more likely they'll work with you, either by letting you post an over payment, or giving you a limit increase temporarily (or permanently). I've had pretty good luck with that in the past, though I haven't had to do it in years.


[1] his cousin is better known, but they're both bad news bears

rockyrock
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Postby rockyrock » Wed Jul 23, 2014 11:43 pm

I agree with flan. I would pay your current balance down and call them. You do want to all them though as if you just try it, they may allow the charge but hit you with a fee.

Let us know what happens.
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MemberSince99
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Postby MemberSince99 » Thu Jul 24, 2014 6:49 am

There is a pretty simple way to do this that has nothing to do with Amex - just push money to them from your bank account. Once it shows on the account make the purchase.

flan
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Postby flan » Fri Jul 25, 2014 8:21 am

MemberSince99 wrote:There is a pretty simple way to do this that has nothing to do with Amex - just push money to them from your bank account. Once it shows on the account make the purchase.


That's not necessarily true. Some banks (MBNA used to do this, for instance, and so did at least some citi accounts) will show you have a negative balance, but still limit your credit to the limit. So you have a -10,000 balance, and a a 5K limit, you can't buy
something for $15K, or eve $5,100. You can only spend $5,000. Once that charge posts (not just is authorized, but actually posts), your balance will rise to -$5000, and your available credit will go back to $5K. (I ran into this buying an engine a number of years ago. Bought one, paid the bill, got a refund, tried to buy a replacement for a bit more than the limit. Had to explain things to a whole series of CSRs, before MBNA would let me spend my own money along with theirs.)

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PlyrStar93
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Postby PlyrStar93 » Fri Jul 25, 2014 8:57 am

AMEX is known to let you spend over the limit with credit balances, I checked through the "check spending ability" tool when having a small credit balance and it said the maximum I could spend was the CL+credit balance.

Citi is likely not to allow this, at least for some of their cards. Last year I asked this problem through online chat and I got the answer that they would not approve such charges.

So, banks may vary depending on their specific policies. To find out whether or not the bank will approve the charges it's better to ask CSR and hopefully the CSR provides accurate information.
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