Say your credit limit is $3,000. But you want to make a $5,000 purchase. Normally, if you do this, you'll go over your limit by $2,000...and that would hurt your credit score.
So instead, can you essentially "increase" you own credit limit by FIRST overpaying your card by $2,000? And then make the $5,000 purchase? Or will making the $5,000 purchase still end up showing as going "over" your credit limit, thereby hurting your credit score?
2006-12-16 10:02:37 · 8 answers · asked by WindowsVistaWoes 1 in Business & Finance ➔ Credit
It won't increase your credit limit (the amount you can owe the card issuer), but it will increase your available credit (the amount you can charge without reaching your limit).
2006-12-16 10:07:35 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Most companies don't allow you to over-pay (and they certainly make it clear online, if you try to over-pay.)
If you need a temporary increase in your limit, try calling the number on your card, and some companies will increase your limit for 1 transaction up to a certain amount. It probably depends on what your credit history is with that card...
Also, they want you to charge an extra $2000. Visa/MC take up to 3% of each transaction (from the merchant, not you), so if you charge an EXTRA 2000, that could be an extra $60 in their pockets immediately! Then they can make even more money off you from your APR. The only way they lose is if you don't pay your bill. But if you call them and say you have 2k cash and will pay 2k towards your first bill, they will probably up your limit (not permanently though.) Unless you come across an idiot that doesn't act in the best interest of the credit card company (a robot, or employee in India)
2006-12-16 12:52:15 · answer #2 · answered by Johnny 3 · 0⤊ 0⤋
You can overpay to create a credit balance, and then charge against the credit balance. For example, if you were going on a trip and needed to charge $500 worth of plane tickets and $1,000 for a hotel bill, but only had a $1,000 credit limit, you could overpay it by that amount and let the new charges work off your overpayment. But, this won't actually increase your authorized credit line. For that, you have to talk with the cc company and ask them to increase it.
2016-05-22 23:59:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I work for a credit card company, our polocy doesn't allow you to charge more than your credit limit no matter what the payment is, because you will be over the limit that was offered to you. Call Customer Service and find out if that can be done with your card, not all companies are the same. If you can't do that, then pay part cash and part credit. Remember finance charges will put you over your limit if you are right at the limit.
2006-12-16 12:26:09 · answer #4 · answered by cutie 2 · 0⤊ 0⤋
In my experience, no. Your credit limit is your credit limit. If you have the extra $2,000, why not pay the $2,000 cash and finance the remaining $3,000?
Your credit limit is influenced by your ability to pay your monthly payments and also your restraint and caution in borrowing in the first place. In all circumstances, companies will increase your credit limit in an attempt to get you to use their card. They make money from interest and finance charges when you use their card to buy. If you are not maintaining a balance on your card, the company will raise your credit limit so that you will be encouraged to spend your card.
This is essentially how I got a $1,000 credit limit when I first got my Discover Card almost 15 years ago, and why I have a $10,000 credit limit on the same card today. Discover wants me to use their card to spend.
But be careful!!! Any balances you incur you have to pay back.
2006-12-16 10:18:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
In the card business this is called expanding your credit line. I would say most companies wouldnt allow the 5k transaction to be processed. Maybe when the 2k payment comes in they put a hold on the account, then maybe after 10 days when they know the check is cleared they would let the 5k charge go through.
2006-12-16 16:08:18 · answer #6 · answered by Gatsby216 7 · 0⤊ 0⤋
No, you can't. Here's why: your credit limit has nothing to do with how much you pay. It's how much they decide you can handle. If you overpay it by $2,000 they will simply refund your money. If you want to increase your limit, then pay on time EVERY time, and eventually they may consider it.
2006-12-16 12:02:09 · answer #7 · answered by Kevin K 3 · 0⤊ 0⤋
Only the credit card company can increase your limit.
2006-12-19 15:17:26 · answer #8 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋