credit card basic

Discussion in 'Community Discussion' started by bluebird3, Oct 24, 2013.

  1. bluebird3 macrumors regular

    Joined:
    Jun 29, 2013
    #1
    I have three credit card. They are all paid up and no min. balance is due at the moment. Let's say if i took out one and used it to purchase an item for $1000.00. Then when the statement comes, I paid it off with a cash. But then I decides to cancel my purchase for a full refund. How does this work? What happens to my credit available balance?
     
  2. ucfgrad93 macrumors P6

    ucfgrad93

    Joined:
    Aug 17, 2007
    Location:
    Colorado
    #2
    I think that you would have a $1000 credit with your credit card. Not sure that they would send you a check for $1000.
     
  3. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #3
    They should send you a check for the negative balance. It might not be automatic (you'd have to call) or only be sent after a couple billing cycles in the black, so don't expect to get the check right away if you need it.
     
  4. bluebird3 thread starter macrumors regular

    Joined:
    Jun 29, 2013
    #4
    So, I'd have an $1000.00 extra ? Let's say before using the card, I had a credit limit to $3000.00. Used $1000.00, now have an $2000.00. With $1000.00 balance due. Pay that off entire amount and now the line of credit is back to $3000.00 correct? Then I ended up canceling my purchase of $1000.00 for a full refund, do I now have a $4000.00 line of credit?
     
  5. mobilehaathi macrumors G3

    mobilehaathi

    Joined:
    Aug 19, 2008
    Location:
    The Anthropocene
    #5
    Call them and ask.
     
  6. dukebound85 macrumors P6

    dukebound85

    Joined:
    Jul 17, 2005
    Location:
    5045 feet above sea level
    #6
    No

    3000 with a 1000 purchase = 2000 left

    pay off and you are at 3000

    cancel and you get what you "paid off" back

    you don't get any credit increase
     
  7. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #7

    It's not technically a credit increase, but since the bank may take their sweet ass time to issue a check for the $1,000 extra, as soon as the refund posts, he could charge $4,000 to the card and remain under his credit limit.
     
  8. Apple fanboy macrumors P6

    Apple fanboy

    Joined:
    Feb 21, 2012
    Location:
    Behind the Lens, UK
    #8
    And end up with a shed load of debt.

    Can't really comment on how the credit thing would work. Never owned a credit card, and never will.
     
  9. yg17 macrumors G5

    yg17

    Joined:
    Aug 1, 2004
    Location:
    St. Louis, MO
    #9
    Or he pays it off when the statement comes.

    I use credit cards for every purchase I make and don't have a dime in credit card debt. They can be used responsibly, and can even benefit you. Thanks to cash back rewards, banks are paying me to use their credit card.
     
  10. snberk103 macrumors 603

    Joined:
    Oct 22, 2007
    Location:
    An Island in the Salish Sea
    #10
    You might have to call to get a refund cheque issued, but in my experience you will have a credit balance. Again in my experience, this will be the same as temporary bump in a credit limit. You can essentially spend your entire credit limit, plus the credit balance.

    There are some caveats... posting the refund takes time, and the credit balance may take more time to appear. Also, this kind of purchase/refund/major purchase behaviour may trigger the issuer's fraud detection. In other words, they may just freeze your account entirely until you can sort it out.

    One other thing... my experience involves one particular credit card issued one particular bank. YMMV....

    This is what I do too, except I don't use my CC at the local merchants, due to the fees the merchants are charged. I figure that I am already paying for the loyalty points (built into the price) so I might as well collect them.
     
  11. ElectronGuru macrumors 65816

    Joined:
    Sep 5, 2013
    Location:
    Oregon, USA
    #11
    It sounds like you are trying to strategize a purchase over your limit. Better to ask for a limit increase or split the purchase across 2 cards. Never mind any single card benefits (like 1%) until you can get the limit up to something useful. In the meantime, don't crash your rating trying to step to soon,
     
  12. sviato macrumors 68020

    sviato

    Joined:
    Oct 27, 2010
    Location:
    HR 9038 A
    #12
    I believe it's just added on top of your credit. I mistakenly overpaid my bill by $200 once so I had $1200 credit available on my card rather than the $1000 limit. After realizing my error, however, I simply went to the bank and was able to withdraw the $200 without it affecting my future payments or interest.
     
  13. TJH133 macrumors member

    Joined:
    Oct 28, 2013
    #13
    True that. You always have the right to request a check for your refund but that might take like 90 days and you have to request it.

    One time I made the mistake and paid the wrong credit card. It was a card that had zero bucks in it the full amount of my primary card. Made worse was that was all the money I had spent on Xmas. It had about a negative $2000 balance. I pretty much did not pay a credit card bill for 2 months. It did sting have to float the 4k all at one time. I just used the card with a negative balance during that time.
     
  14. malman89 macrumors 68000

    Joined:
    May 29, 2011
    Location:
    Michigan
    #14
    Probably depends on the policy of the bank that issues the card.

    I've had a few instances like this with my Chase cards, and I either have the option of getting a check cut or having a balance credit. So instead of being at $0.00, my balance would be ($34.50) or -$34.50.

    I have never had such a large balance (think both were under $100) that I cared to get a check cut.
     
  15. Nabooly macrumors 6502a

    Nabooly

    Joined:
    Aug 28, 2007
    #15
    Although I've never had a return for that high of an amount, usually when I return an item it shows up as a credit on my online account.
     

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