topic Re: Negative credit balance to purchase $3000 on $2000 credit limit in Credit Cards

Negative credit balance to purchase $3000 on $2000 credit limit

Ghost117 — Thu, 10 Dec 2020 04:03:13 GMT

So I have had a Navy federal secured nrewards card for 6 months on the 7 month I was put on the cash rewards card with a credit limit of $2,000.

Now I have the opportunity and money to purchase an item. I've been wanting for a long time I tried to get NFCU to raise my credit score but unfortunately was denied.

I was wanting to pu this on my CC for the cash back so I had an idea if I over pay my CC by $1,000 NFCU would credit my account with the money and in theory I could spend the $3,000 even though I have only a $2,000 credit limit.

Has anyone done this before? And would it be a good idea or a bad one?

Re: Negative credit balance to purchase $3000 on $2000 credit limit

TheBoondocks — Thu, 10 Dec 2020 04:07:36 GMT

I believe that you could make the purchase, I don't think they have any overlimit fees. I could be wrong as I never done it but you should ask them, they're available 24/7.

Re: Negative credit balance to purchase a$3000 on $2000 credit limit

Ghost117 — Thu, 10 Dec 2020 04:26:09 GMT

OK I talk NFCU the only time you can go over the credit limit is if you go to the limit and then your account goes into collections and has fees that get tacked onto your account. and about the over payment there is a time limit on it when a overpayment is done the funds should be able be used to allow of a purchase of more then the credit limit but after it posts then it does not allow any purchases above the credit limit

Re: Negative credit balance to purchase a$3000 on $2000 credit limit

TheBoondocks — Thu, 10 Dec 2020 05:32:44 GMT

In that case, I wouldn't do it. If you want that leverage, you could go with amex. They allow you to do all of that even better you could finance over $100 with no fees.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

MisterWives — Thu, 10 Dec 2020 05:48:42 GMT

The only time I was able to knowingly put myself towards a negative balance was when I got refunded on the card. Most cards prevent overpayment the only ones I found that did not care were Sychrony cards they were happily fine with accepting multiple payments.

If it's possible I would recommend just splitting the cost across another card if you can do it in person usually cashiers can do so, but if it's online then that's most likely not an option.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Harvey26 — Thu, 10 Dec 2020 06:03:18 GMT

@Ghost117 Try applying for new card ? You can request rush mail

Re: Negative credit balance to purchase $3000 on $2000 credit limit

HeavenOhio — Thu, 10 Dec 2020 15:32:50 GMT

Even with a negative balance, the purchasing power of most cards will remain at the credit limit. As mentioned, AMEX is an exception.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

imaximous — Thu, 10 Dec 2020 15:45:09 GMT

@HeavenOhio wrote:
Even with a negative balance, the purchasing power of most cards will remain at the credit limit. As mentioned, AMEX is an exception.

I was about to post something along those lines. Just the fact that you create a negative balance, doesn't necessarily mean that you're increasing your credit limit. You may be able to make smaller purchases, and as they move from "pending" to "posted" transactions, it'll start reducing your negative balance, but it doesn't give you the power to make a $3k purchase on a $2k limit.

Some other cards with flexible limits besides Amex may allow spending over your limit too, but the amount varies by card, lender, etc.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

M_Smart007 — Thu, 10 Dec 2020 15:50:57 GMT

@imaximous wrote:
@HeavenOhio wrote:
Even with a negative balance, the purchasing power of most cards will remain at the credit limit. As mentioned, AMEX is an exception.
I was about to post something along those lines. Just the fact that you create a negative balance, doesn't necessarily mean that you're increasing your credit limit. You may be able to make smaller purchases, and as they move from "pending" to "posted" transactions, it'll start reducing your negative balance, but it doesn't give you the power to make a $3k purchase on a $2k limit.

Some other cards with flexible limits besides Amex may allow spending over your limit too, but the amount varies by card, lender, etc.

Navy's Flagship "Signature" card would allow you to do this, but not the case for OP's secure card.

I agree with the poster about applying for a second card and have it FedEx expedited.

I was approved and had the card the next day.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Ghost117 — Thu, 17 Dec 2020 19:37:45 GMT

OK I tried it and it does work by just overpaying credit card your able to use all of available balance even though you go over the credit limit on NFCU cards.

https://cdn.discordapp.com/attachments/789211759465988189/789213244870230026/Screenshot_20201217-141110_Gallery.png https://cdn.discordapp.com/attachments/789211759465988189/789213315183411260/Screenshot_20201217-141059_Gallery.png

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Anonymous — Thu, 17 Dec 2020 21:28:10 GMT

Maybe I'm misunderstanding something obvious here and if so, please let me know. You have a $2000 limit card and are able to overpay or pay down your balance to -$1000. You then make a purchase for $3000, maxing out your $2000 limit card. This purchase doesn't constitute using "over" your limit.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Ghost117 — Thu, 17 Dec 2020 21:36:13 GMT

From what I know of NFCU when you over pay they take the payment and apply it to available balance of a limited time allowing you to pay for an item that is the same as your available balance not your credit limit so if you need to buy something for more then what your credit limit allows you to do this will help

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Remedios — Thu, 17 Dec 2020 21:54:36 GMT

I'm surprised your overpayment didn't get applied towards cash advance

Re: Negative credit balance to purchase $3000 on $2000 credit limit

noobody — Fri, 18 Dec 2020 00:51:44 GMT

The process is like this:

You have a an credit card account with 2000 limit and negative 1000 balance.

You made a purchase of 200 today, they would put an authorization of 200 on the card, thus reduce the available credit to 1800.

In couple of days, when the charge is settled, they would apply the negative balance towards the new charge, you would have a negative 800 balance with 2000 available credit again.

If you try to make a charge of 2500, they would compare it to you available credit line which is 2000, most likely will be declined.

Every bank could handle it differently, best bet is to call CSR more than once to find out exactly what's their policy is, as I think it very likely front line CSR make mistake on this matter also.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

jonnyc — Fri, 18 Dec 2020 01:37:21 GMT

I have done this many many times with my NFCU secured card. I've never had an issue. I make the payment from my NFCU checking account, Close the app to refresh to see the payment and then can charge any amount needed. I've called CS to inquire about this and was always told different answers from sure its not a problem to its not possible. From doing it so many times personally, I can confirm you can do that without issue. Side note, only the first payment of the day will post instantly so if you make another payment to put another purchase on, you'll have to call in to have them push the payment through manually.

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Anonymous — Fri, 01 Jan 2021 17:03:30 GMT

Very interesting. I over paid my navy secured by 750, then my statement cut. I think it was like, -725.00. I thought I was out thinking the credit bureau's, wrong, it was reported 0.00 balance and I took a 15 point hit.😔 well I'm going to try it on my flagship card. Over payment. See if it adds credit past my limit. So this is what I might do then, my secured card graduates, take the 5k from it, add it to my flagship card, 25k cl, it then turns into 30k, then I ask for a cli after 91/3, navy gives me the 4K, (because of virus), now it goes to 34k, or I confuse navy and they give me 34k cl, when it should be 29k. What do you guys think. Lol 😂

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Anonymous — Fri, 01 Jan 2021 17:09:37 GMT

M_smart007 So you have overpaid your flagship card? And it added on to your cl??

Re: Negative credit balance to purchase $3000 on $2000 credit limit

Ghost117 — Fri, 01 Jan 2021 17:47:10 GMT

So when you over pay your NFCU CC It applies to your available balance not your credit limit they are different credit limit is from 0-100% limit were as a available balance is your purchase power. So when you over pay you add purchase power not increaseing your limit.

To put it in a situation if I owe $0 on my 2k CL cc and over pay by 1k my purchase power is 3k but my limit is 2k. This only works for a limited time when NFCU posts the overpayment you will be unable to purchase 3k so they say you need to purchase asap after you overpay hoppfully I explained that better.