Paying credit card before purchase?

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jchristo
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Paying credit card before purchase?

Postby jchristo » Fri Feb 25, 2011 9:56 pm

I am currently a student and only have a Capital One student credit card with a $500 limit which doesn't really do much for my spending habits and goods that I buy. If I were to pay my credit card $2000 in advance, would I be able to make purchases for big items? And what effect would this have on my credit?


jeffysdad
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Postby jeffysdad » Sat Feb 26, 2011 7:37 am

Basically what you want to do is accrue a positive balance on your account, which generally I don't think is possible. Payments typically aren't credited for more than the account balance, at least when you pay online; this has been my experience.

I would call them and explain your situation and see if you can't get a credit limit increase. Failing that, you might ask them to credit a "positive balance" payment.

I once accidentally had a positive balance of about $600. I signed up for autopay but didn't think it had gone active. I paid the account normally and then had my checking account debited for the full balance automatically. The account got paid twice, rendering a positive balance. Citi quickly sent a check to bring it back to zero, though.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 9:13 pm

jeffysdad wrote:I once accidentally had a positive balance of about $600. I signed up for autopay but didn't think it had gone active. I paid the account normally and then had my checking account debited for the full balance automatically. The account got paid twice, rendering a positive balance. Citi quickly sent a check to bring it back to zero, though.


When I've had a positive balance remain unused for more than a month or two, I was quickly sent a check too. There was a period when I was not using my Blue Cash and there was $11 on it which didn't bother me the least bit, but Amex sent a refund check automatically after a couple billing cycles. It's kind of funny how vigilant the credit card companies are with paying back positive balances. Perhaps there is some type of rule that prevents it or interest would have to be paid to the customer if it was kept for an extended period of time.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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