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Silly credit card problem :P

Q

questionmark

macrumors member
Original poster
Jun 29, 2012
38
4
Let say I have $1000 on my credit card.

If I put in $2000 prior to my card prior to buying the $1799 13", which makes my credit card balance to -$2000, will that put me over the limit? Will that hurt my limit? Will there be any problems? Negative balance on credit card is good?

I know this is not a financial forum, but I will be forever grateful for anyone that has an answers.

P.S. I have just gotten my first credit card and want to collect as much as point as possible :p
 
That's not how credit cards work. You have a credit limit on your credit card. You can only spend up to that credit limit on your card. So if your credit limit is $2000, you can only spend that much in one month.
 
greenythebeast said:
That's not how credit cards work. You have a credit limit on your credit card. You can only spend up to that credit limit on your card. So if your credit limit is $2000, you can only spend that much in one month.
Click to expand...

Not true.

You can spend more per month if you make payments. I spent $380,000 last month on my $150,000 card. I made payments as I spent. I did this to earn points also.

However MOST CCs will not allow you to overpay them unless you get special permission or work the refund trick.

Refund trick.

Step 1. Buy a bunch of crap you CAN return to MAX out your CC.

Step 2. When thease items post to your account online PAY OFF the CC.

Step 3. Go and return all the crap you bought in step 1.

Step 4. When you return the crap your balance will go neg so you can spend the neg amount plus the normal limits.


Example. Buy $900 TV on $1000 limit CC. Pay off CC after 3 days. Now CC balance is $0. Now return the TV. CC balance is $-900. So you can now spend $1900 on the CC.
 
Millionaire2K said:
Not true.

You can spend more per month if you make payments. I spent $380,000 last month on my $150,000 card. I made payments as I spent.

However MOST CCs will not allow you to overpay them unless you get special permission or work the refund trick.

Refund trick.

Step 1. Buy a bunch of crap you CAN return to MAX out your CC.

Step 2. When thease items post to your account online PAY OFF the CC.

Step 3. Go and return all the crap you bought in step 1.

Step 4. When you return the crap your balance will go neg so you can spend the neg amount plus the normal limits.


Example. Buy $900 TV on $1000 limit CC. Pay off CC after 3 days. Now CC balance is $0. Now return the TV. CC balance is $-900. So you can now spend $1900 on the CC.
Click to expand...

Well, yes, if you return stuff your balance will go down. I assumed he meant just purchasing stuff. He also mentioned he wanted to get as many points as possible. The return trick wouldn't work with that since any stuff he returned wouldn't get him points. Given his situation, I don't think your method is useful.
 
greenythebeast said:
Well, yes, if you return stuff your balance will go down. I assumed he meant just purchasing stuff. He also mentioned he wanted to get as many points as possible. The return trick wouldn't work with that since any stuff he returned wouldn't get him points. Given his situation, I don't think your method is useful.
Click to expand...

Yes it is because he wants to earn all the point for the PC.

So if he is able to buy the PC on the CC he will earn all the points for the PC.

Also why would the crap he returns matter with points? It is only bought to extend the limit when they are returned so he CAN use his card to buy the PC.


Points earned buy not using return trick = 0

(can't afford PC on CC so no points)

Points earned with return trick = 1800

(x points gained and lost from returned items. + 1800 from PC he can now afford on CC)

How is it not helpful?

Questionmark: What is your CC limit? What is you current CC balance? How much is the PC?
 
Millionaire2K said:
Yes it is because he wants to earn all the point for the PC.

So if he is able to buy the PC on the CC he will earn all the points for the PC.

Also why would the crap he returns matter with points? It is only bought to extend the limit when they are returned so he CAN use his card to buy the PC.


Points earned buy not using return trick = 0

(can't afford PC on CC so no points)

Points earned with return trick = 1800

(x points gained and lost from returned items. + 1800 from PC he can now afford on CC)

How is it not helpful?

Questionmark: What is your CC limit? What is you current CC balance? How much is the PC?
Click to expand...

My CC limit is $1000 and the MBP I want is $1799. Can I just transfer $1000 in advance to my CC, as I have my debit card linked to it, that won't put me above the limit right?

I know I can always pay it with my debit card, but that won't give me any points. So yeah...
 
questionmark said:
My CC limit is $1000 and the MBP I want is $1799. Can I just transfer $1000 in advance to my CC, as I have my debit card linked to it, that won't put me above the limit right?

I know I can always pay it with my debit card, but that won't give me any points. So yeah...
Click to expand...

You should call the CC company and ask if they will allow you to make a $1000 payment so you can buy the PC.

When they tell you "no" ask if they can extend your limit.

IF they tell you "no" again just go and buy something for $900 on your CC. Then payoff the $900 in a day or so when it post. Then return the item to the store. You will now have a balance of -$900 and available credit of $1900.

Now buy the PC.

PS. Overpaying your CC is not a bad thing at all. Just never over"spend".

PS again, NEVER use over the limit backup funding. It is NOT good for you.
 
Every bank has a different policy, best to call your bank and ask what happens if you submit a payment that exceeds your balance. Any answer here is just speculation and shouldn't be considered fact for all people or financial institutions.
 
Millionaire2K said:
Not true.

You can spend more per month if you make payments. I spent $380,000 last month on my $150,000 card. I made payments as I spent. I did this to earn points also.

However MOST CCs will not allow you to overpay them unless you get special permission or work the refund trick.

Refund trick.

Step 1. Buy a bunch of crap you CAN return to MAX out your CC.

Step 2. When thease items post to your account online PAY OFF the CC.

Step 3. Go and return all the crap you bought in step 1.

Step 4. When you return the crap your balance will go neg so you can spend the neg amount plus the normal limits.


Example. Buy $900 TV on $1000 limit CC. Pay off CC after 3 days. Now CC balance is $0. Now return the TV. CC balance is $-900. So you can now spend $1900 on the CC.
Click to expand...


Thanks for the return trick! I have no idea that exists!

As I am just a freshman in college and I've read so much about avoiding getting into credit debt and such, I don't want to ruin my credits by doing silly stuff or because of my ignorance about the system.

However, my CC limit can't even get me any MBP as they are all $1000+, which is my limit. And I only have one credit card...

As this is going to be my first big purchase and I have been saving up for the Haswell. I want to get as much as points as possible. If it comes down to it, I can always pay it with my debit card only, but that won't get me any points.
 
questionmark said:
Let say I have $1000 on my credit card.

If I put in $2000 prior to my card prior to buying the $1799 13", which makes my credit card balance to -$2000, will that put me over the limit? Will that hurt my limit? Will there be any problems? Negative balance on credit card is good?

I know this is not a financial forum, but I will be forever grateful for anyone that has an answers.

P.S. I have just gotten my first credit card and want to collect as much as point as possible :p
Click to expand...

Yes, this is 100% correct. No need to buy and return stuff.

The $1000 limit, is a limit on the amout of credit they are willing to lend to you. So they are saying we only trust you with $1000. But if you pay $2000 then you are able to make a payment of up to $3000 because you are spending $2000 that you already paid and $1000 of their money

This has been done before by myself for certain large purchases.
 
questionmark said:
My CC limit is $1000 and the MBP I want is $1799. Can I just transfer $1000 in advance to my CC, as I have my debit card linked to it, that won't put me above the limit right?

I know I can always pay it with my debit card, but that won't give me any points. So yeah...
Click to expand...

Best to check with your issuing bank - there's no law that applies to all credit cards in all jurisdictions..

(I have a friend who once managed to get points on a $20,000 house downpayment through clever exploitation of loopholes that his bank closed off shortly afterwards!)
 
NewbieCanada said:
Best to check with your issuing bank - there's no law that applies to all credit cards in all jurisdictions..

(I have a friend who once managed to get points on a $20,000 house downpayment through clever exploitation of loopholes that his bank closed off shortly afterwards!)
Click to expand...

I also agree with this.

CALL you CC to ask about making an overpayment b4 you do any trick. However I suspect they will NOT approve the extra payment. My $150,000 card only allows overpayment of $500.
 
Last edited:
Millionaire2K said:
I also agree with this.

CALL you CC to ask about making an overpayment b4 you do any trick. However I suspect they will NOT approve the extra payment. My $150,000 card only allows overpayment of $500.
Click to expand...

And that's why it's important to call. My knowledge of CCs with 150,000 limits is severely limited. :D

Remember also that the points on that extra $1000 will only amount to $10 or so, depending on the points structure. How much of a hassle do you (OP, not Millionaire2K) want to go through for $10?
 
It can be worth figuring out how to get everything onto your card IF your card gives you an extended warranty or any kind of damage/purchase protection. Usually these only apply if you pay for the thing completely with the card.

Otherwise it's probably not worth the trouble just for the points.
 
NewbieCanada said:
And that's why it's important to call. My knowledge of CCs with 150,000 limits is severely limited. :D

Remember also that the points on that extra $1000 will only amount to $10 or so, depending on the points structure. How much of a hassle do you (OP, not Millionaire2K) want to go through for $10?
Click to expand...

$18 u mean. And I agree. Is it really worth the trouble?

I say just use your Debit card if the CC wont extend or allow extra payment in advance of purchase.
 
Millionaire2K said:
Not true.

You can spend more per month if you make payments. I spent $380,000 last month on my $150,000 card. I made payments as I spent. I did this to earn points also.

However MOST CCs will not allow you to overpay them unless you get special permission or work the refund trick.

Refund trick.

Step 1. Buy a bunch of crap you CAN return to MAX out your CC.

Step 2. When thease items post to your account online PAY OFF the CC.

Step 3. Go and return all the crap you bought in step 1.

Step 4. When you return the crap your balance will go neg so you can spend the neg amount plus the normal limits.


Example. Buy $900 TV on $1000 limit CC. Pay off CC after 3 days. Now CC balance is $0. Now return the TV. CC balance is $-900. So you can now spend $1900 on the CC.
Click to expand...

Damn spent $380k last month?! That 1%er.

Edit: I do the same CC trick too to buy something above my credit limit.
 
Why dont you just put so much on your credit card and so much on your debit?

For example:
I put about 1200 on my debit and the rest on my credit so i could make payments and that will help boost your credit (If you pay on time :p)
 
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