Help regarding "Over Credit Limit" with Discover it!

[DavidZeng]

Hi guys, I am new here! Having been digging tons of useful information and advice from here, I am really appreciated all the help from the forum.

I am new to credit card (in U.S.). I just got Discover it ($500)  and Chase Freedom ($600) a week ago, due to my zero credit history here. Since it is holiday season, I plan to do several large purchase online. You know the problem, my very crappy credit limit. So I talked to discover and they told me that I can indeed pre-transfer some money from my bank to Discover and make large purchase, around $2200 dollars. Here is my concern. The Discover guy say that if I transfer cash from my bank in advance, I will not be considered over credit limit with them. But they can not gurantee no damage with the credit bureaus. 

I have enough to pay my bills in full, and plan to pay in full with all my purchase, but I just want the 5% cash back from the card, so will this be considered as over limit? If so, how will this damage my credit scores since I am still a thin file, I suppose.

Thanks guys! Please give me some advice~ XD

[Startome]

Hey there, if I were you, I'd send them a big payment early, and once I see it all post to the CC, then make my purchases. For example, if you plan to buy 1500 worth of stuff on a 500 limit card, send them a payment for 1500, once you see your balance on Online Banking show -1,500, you're good to go, as any purchases you make will eat out of your negative balance, instead of adding a positive balance =)

[chwebb1]

When I asked Discover a similar question (if I could prepay to be able to charge over my CL), they told me no. Seems weird that they're letting you do it. Or maybe the rep misunderstood my question?

[DavidZeng]

Thanks for replying

[DavidZeng]

They are quite sure that I can pay in advance to let the balance to be "-" , using bank or go to Sears department store to transfer money (sounds weird, I konw)

[chwebb1]

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@DavidZeng wrote:

They are quite sure that I can pay in advance to let the balance to be "-" , using bank or go to Sears department store to transfer money (sounds weird, I konw)

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Maybe I got a new person when I called or something.

[DavidZeng]

They also told me that the over  flow part of my credit will be return to me in check if I did not spent them in 2 months.

[chwebb1]

I think Discover might hate me. When I asked them that same question, they said that they may decline the payment from my bank. They also didn't give me any auto-luv or luv in general when I asked for a CLI at 3 months.

Also, the only card that I have that 'advertises' the prepay balance feature is my Amex. When I pay over my balance, my credit increases over my CL. But then again, the CL on their card is more of a suggestion: I've tested spending on the card for $2000 over my CL, and it would approve me to spend that too.

[Creditaddict]

correct, just send the payment from your bank... Discover won't reject it.

Probably true they will send you check if you don't spend it in a certain time.

The person probably told you they can't help damage to credit that it may report your highest balance on credit report of $2k something on a $500 limit but after 1 month even if that did hurt you it would probably help you after that... I wouldn't worry about it.

[DavidZeng]

Yes, anyway I'll pay in full. the 500 limit on my card is really too low, I love to pay off the balance as soon as appeared on my card. Hope discover guy will raise my limit in 3 months.