Credit Cards

Are there any downsides to overpaying my balance?

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  • Mar 1st, 2023 12:22 pm
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Feb 27th, 2023 2:28 pm
Raident [OP]
Sr. Member
May 13, 2014
706 posts
374 upvotes
Vancouver

Feb 27th, 2023 2:28 pm

Are there any downsides to overpaying my balance?

I have an upcoming purchase that will be exactly the amount of the credit limit of one of my lower limit cards.

I'm thinking that the easiest way to facilitate this transaction is to overpay my current balance a few days in advance so that I have a credit balance sitting on the account, but are there any downsides to doing so that I'm not aware/thinking of?
7 replies
Feb 27th, 2023 2:31 pm
Cheapo-Findo
Deal Expert
User avatar
Mar 9, 2007
15199 posts
12172 upvotes
Think of the Childre…

Feb 27th, 2023 2:31 pm

No downsides.

WOULD SOMEBODY THINK OF THE CHILDREN!!!
Feb 27th, 2023 5:21 pm
DeletedMemories
Deal Addict
Dec 22, 2007
1506 posts
1106 upvotes
Mississauga

Feb 27th, 2023 5:21 pm

Raident wrote: ↑ I have an upcoming purchase that will be exactly the amount of the credit limit of one of my lower limit cards.

I'm thinking that the easiest way to facilitate this transaction is to overpay my current balance a few days in advance so that I have a credit balance sitting on the account, but are there any downsides to doing so that I'm not aware/thinking of?
i've heard that some cards wont let you spend over the limit even if you have a negative balance.
+1
Feb 27th, 2023 6:16 pm
revnant
Newbie
Mar 23, 2008
97 posts
37 upvotes

Feb 27th, 2023 6:16 pm

DeletedMemories wrote: ↑ i've heard that some cards wont let you spend over the limit even if you have a negative balance.
I think they will still check the transaction against the current credit limit even if you overpaid into a negative balance. However, once the transaction clears and it changes the balance, then the current credit limit will get recalculated and take the negative balance into account as well.
Feb 27th, 2023 6:19 pm
Mike15
Deal Fanatic
Nov 24, 2013
6312 posts
3083 upvotes
Kingston, ON

Feb 27th, 2023 6:19 pm

DeletedMemories wrote: ↑ i've heard that some cards wont let you spend over the limit even if you have a negative balance.
It’s been a while but I definitely remember that happening to me before. The card limit was also the single purchase limit.
But some cards do let you make a larger transaction by overpaying first.
Feb 27th, 2023 8:00 pm
smartie
Deal Guru
Dec 5, 2006
13850 posts
9244 upvotes
Markham

Feb 27th, 2023 8:00 pm

revnant wrote: ↑ I think they will still check the transaction against the current credit limit even if you overpaid into a negative balance. However, once the transaction clears and it changes the balance, then the current credit limit will get recalculated and take the negative balance into account as well.
Better check with banks
Feb 28th, 2023 5:29 pm
cheapshopper
Deal Fanatic
Jan 31, 2007
5230 posts
5392 upvotes
Richmond Hill

Feb 28th, 2023 5:29 pm

Credit card company thanks you for interest free loan.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
+2
Mar 1st, 2023 12:22 pm
Kiraly
Deal Expert
User avatar
Jan 9, 2011
16495 posts
22681 upvotes
Vancouver

Mar 1st, 2023 12:22 pm

cheapshopper wrote: ↑ Credit card company thanks you for interest free loan.
No different from a chequing account really. It's not like he's putting an investment-level figure in there.
+2

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