Any reason I shouldn't overpay my Discover card to temporarily increase my spending limit?

[Ack226]

I have a Discover IT card that I'm trying to run as much spending through as possible. But I only have a $500 credit limit and payments take several days to go through. Is there any reason I shouldn't overpay to give myself a credit balance and thus a higher limit before I need to pay again?

For example, I have a $500 credit limit. Can I overpay my bill by $500 to give myself a $1000 "limit" before I need to pay again? Will this have any negative effects with Discover or with my credit report?

[Kforce]

---

@Ack226 wrote:

I have a Discover IT card that I'm trying to run as much spending through as possible. But I only have a $500 credit limit and payments take several days to go through. Is there any reason I shouldn't overpay to give myself a credit balance and thus a higher limit before I need to pay again?

For example, I have a $500 credit limit. Can I overpay my bill by $500 to give myself a $1000 "limit" before I need to pay again? Will this have any negative effects with Discover or with my credit report?

---

The answer is both "yes" & "no".

I do not have Discover however most issuers have two things in place that prevent you from doing what you are suggesting.

1st most will not let you overpay from there web site or app.  Usually have limit of current balance as a max payment.  2nd they only clear limit back to your CL not including the overpayment in CL. Your Cl will only rise back to $500.

If one overpays by pushing funds from an external account, you can have a negative balance and gain some extra time before paying again.  Some breathing room and extra time until next payment. 

Most issuers do not worry about a young thin profile paying many times a month because of a low CL, however many do not like one spending more than reported income on the card.

Example Income: (12,000/12= 1000/mo spend)

Would not look good to put 2,500 thru card however if income was 40,000 it would  probably not be an issue (YMMV)

[NoMoreE46]

I know that kind of limit is tough and you need a better CL @Ack226 .

IMO Overpaying once for that amount is fine.  Doing it repeatedly- in hopes of a CLI may actually backfire. The repeated overpayments could be flagged for review by Discover.

How long are the payments taking to post and when did you get this card?

Incidentally, CapOne will allow payments of about 10% over the current balance.

[FireMedic1]

I accidently overpaid Disco a coupe times. It will show a neg balance. Until you charge again. But to use it as your asking. Heavy use and ask for CLI's every 30 days. It will grow in time.

[SouthJamaica]

---

@Ack226 wrote:

I have a Discover IT card that I'm trying to run as much spending through as possible. But I only have a $500 credit limit and payments take several days to go through. Is there any reason I shouldn't overpay to give myself a credit balance and thus a higher limit before I need to pay again?

For example, I have a $500 credit limit. Can I overpay my bill by $500 to give myself a $1000 "limit" before I need to pay again? Will this have any negative effects with Discover or with my credit report?

---

I wouldn't do it.  It might attract unwanted attention. Better to just stay within your limit, and keep paying it down, even multiple times per month.

[FireMedic1]

---

@SouthJamaica wrote:

---

@Ack226 wrote:

I have a Discover IT card that I'm trying to run as much spending through as possible. But I only have a $500 credit limit and payments take several days to go through. Is there any reason I shouldn't overpay to give myself a credit balance and thus a higher limit before I need to pay again?

For example, I have a $500 credit limit. Can I overpay my bill by $500 to give myself a $1000 "limit" before I need to pay again? Will this have any negative effects with Discover or with my credit report?

---

I wouldn't do it.  It might attract unwanted attention. Better to just stay within your limit, and keep paying it down, even multiple times per month.

---

This ^^^^^^^^^ Disco is generous with heavy use. They are jealous too. They want to be your go to card. Agree with @SouthJamaica 

[Ack226]

Thanks everyone. I may have asked the question too soon. It looks like, as someone said above, the Discover interface doesn't allow me to pay more than what's currently owed.

Also, I made my first payment yesterday and it was posted by this morning and my credit limit was freed up, so the payments don't take that long to go through. I saw people complaining online that payments take 3 - 10 days to go through, but mine went through in 1 day.

[Thomas_Thumb]

After 6 months of use, ask for a credit limit increase on-line. It is a soft inquiry. Let another 6 months go by and then ask again. Rinse and repeat.

I had an older Discover account and never received any auto increases. However, they were generous with clis when requested manually online. Did the online request every 6 months for 2 years. Received nice increases every time.

[ForwardLooking]

Discover is pretty quick to post normally.  The only time I have seen a delay in posting is for larger payments (thousands) or if I pay from a new account.  For regular payments from accounts I have paid with in the past, it is usually 1 business day for me.

[markbeiser]

Discover won't let me pay more than my "current balance," not even to pay "pending" charges.