Overpay Penfed Card, Then Use Balance Transfer Promo For More Than Current Limit?

[maddox74]

So I got a promo email (which I think everybody did?) on my Penfed Promise card for 5% APR (no BT fee on the Promise card) for 12 months on balance transfers before the June 30.  I  have a $17k limit on that card, and I am going to be carrying a balance for a couple of months, so I did a $9k and $6k balance transfer ($15k total).  The thing is, I was already overpaid on that card $300 before doing the balance transfer, and when I did the balance transfer, it shows $2300 of available credit (instead of $2000).  

This made me wonder, since Penfed is good with accepting overpayment, I could possibly overpay by like $8k, then do the balance transfer at the promotional rate for an amount larger than my $17k credit limit for the card.  

Does anyone have any experience here overpaying a Penfed card, and then doing balance transfers to that card that are greater than the card's limit? 

[SouthJamaica]

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@maddox74 wrote:

So I got a promo email (which I think everybody did?) on my Penfed Promise card for 5% APR (no BT fee on the Promise card) for 12 months on balance transfers before the June 30.  I  have a $17k limit on that card, and I am going to be carrying a balance for a couple of months, so I did a $9k and $6k balance transfer ($15k total).  The thing is, I was already overpaid on that card $300 before doing the balance transfer, and when I did the balance transfer, it shows $2300 of available credit (instead of $2000).  

This made me wonder, since Penfed is good with accepting overpayment, I could possibly overpay by like $8k, then do the balance transfer at the promotional rate for an amount larger than my $17k credit limit for the card.  

Does anyone have any experience here overpaying a Penfed card, and then doing balance transfers to that card that are greater than the card's limit? 

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I wouldn't mess around with it like that. You don't want to send up red flags that could endanger your relationship.

[NRB525]

OP if you have that amount of spare change in your couch cushions, why not pay it directly on the high interest card you were going to BT to PenFed before we get to negative $8k on the card?

I think you could get this to work, however that means either you have been paying into PenFed for many months while building up high interest credit card balances, or you won the lottery, and might as well have deposited that payment to pay off that high rate card directly, not paying a credit card to negative. 

[medicgrrl]

I'm not understanding why you would want to do that vs just paying down the other card and then transferring the remaining. It's the same thing.

[hsspres]

But then when the transfer posts, you would be over your limit and could incur a penalty for doing so, and they may want your minimum due to include the amount over the limit when the statement cuts.

[pip3man]

OP what is you tryna do? That's a big no, throw that thought out the window. Bad for you!

[AverageJoesCredit]

+1000 SJ advise

[Anonymous]

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@medicgrrl wrote:
I'm not understanding why you would want to do that vs just paying down the other card and then transferring the remaining. It's the same thing.

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^^^^^this

[Blodreina]

Somewhat unrelated - there are a lot better BT offers than 5% APR for 12 months (even though it has no BT fee).

[NRB525]

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@CommanderLexa wrote:

Somewhat unrelated - there are a lot better BT offers than 5% APR for 12 months (even though it has no BT fee).

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It depends how quickly you are paying the transferred balance.

Half a percent per month on a rapidly declining balance can be less cost than paying 3% up front on the full BT.