Can you settle credit card balance before statement…

[Phooey]

..to reset the limit? That probably didn't make sense so... basically I want to make a lumpy purchase on my CC which will almost max it out. The problem is I need the CC for other purchases (CC protection) so I was thinking of making the (lumpy) purchase, and then immediately pay it off (approx 20 days early) in the hope it will *reset* the limit. Can you do such a thing? HSBC Premier.

Thanks

[M1AGM]

Yes.

[limpsfield]

Of course.

[Phooey]

brill, thank you

[LordHaveMurci]

They don’t always like it, Barclaycard closed my account for doing it, albeit I did it regularly.

Had been a customer for over 20yrs.

[Car bon]

If it's a card that accumulates points, some will limit the number earned per month to your credit limit.

Sometimes the payment isn't instantaneous - it can take a day or so to process.

Other than that, should be no problem.

[Random Account No6]

Car bon said:

If it's a card that accumulates points, some will limit the number earned per month to your credit limit.

Sometimes the payment isn't instantaneous - it can take a day or so to process.

Other than that, should be no problem.

I think (could be wrong) that’s how it works with my Amex, rewards are on the statement balance.

[LordHaveMurci]

Car bon said:

If it's a card that accumulates points, some will limit the number earned per month to your credit limit.

Sometimes the payment isn't instantaneous - it can take a day or so to process.

Other than that, should be no problem.

It was a cashback card.

[OutInTheShed]

If you 'accidentally' end up paying interest on a credit card, you need to do more than pay the whole balance on the next statement, to avoid further interest.

The few times I've done this, I've paid a decent wedge onto the card so it goes into credit for a while, stopping the interest instantly.

[limpsfield]

The question was about a possible future charge that would push it near the credit limit of the card.

[djc206]

LordHaveMurci said:

They don’t always like it, Barclaycard closed my account for doing it, albeit I did it regularly.

Had been a customer for over 20yrs.

Really? What did they say?

[Cupid-stunt]

I wanted to do this with AmEx cashback a couple of weeks ago.

Was going to buy a used car, wanted to pay it on the card. Called to see if I can pre pay, thus in my head giving me a higher limit. I was told that the limit they had on the card was the max I can spend, regardless of my 'outstanding balance'.

Ended up asking to increase limit. Was asked a few questions and had a higher limit on my card.


Didn't buy the bloody car!

[Rufus Stone]

I often overpay on my credit card. When I am in credit at the statement date that is added to my credit limit for the 'available to spend' balance.

This is Lloyds.

[Random Account No6]

Rufus Stone said:

I often overpay on my credit card. When I am in credit at the statement date that is added to my credit limit for the 'available to spend' balance.

This is Lloyds.

It won’t increase your ‘credit limit’ - that’s the amount they are willing to lend to you. It may however change your effective available amount.

[Jordie Barretts sock]

Rufus Stone said:

I often overpay on my credit card. When I am in credit at the statement date that is added to my credit limit for the 'available to spend' balance.

This is Lloyds.

Exactly the same with my Amex. I always clear the balance. One month I paid the balance and also the DD came out for the balance a few days later - I didn't pay it off in time to stop the DD triggering. Had a larger available spend the following month as I was in considerable credit.

[snuffy]

When Amazon stopped accepting Visa (or rather when they were suggesting they would), I got myself an Amazon Mastercard. Then everytime I made a purchase on amazon, I then paid that amount to my Mastercard straight away. So I never ran up a balance but got the loyalty points. I'd often do that several times a month.

[Rufus Stone]

Random Account No6 said:

Rufus Stone said:

I often overpay on my credit card. When I am in credit at the statement date that is added to my credit limit for the 'available to spend' balance.

This is Lloyds.

It won’t increase your ‘credit limit’ - that’s the amount they are willing to lend to you. It may however change your effective available amount.

Which is what I said, is it not?

[Shnozz]

Not sure how true it is, but I once heard that it negatively affects your credit score to carry a positive balance on a credit card. Anyone more knowledgable than I care to confirm?

[Random Account No6]

Rufus Stone said:

Random Account No6 said:

Rufus Stone said:

I often overpay on my credit card. When I am in credit at the statement date that is added to my credit limit for the 'available to spend' balance.

This is Lloyds.

It won’t increase your ‘credit limit’ - that’s the amount they are willing to lend to you. It may however change your effective available amount.

Which is what I said, is it not?

Well blow me down, you’re correct. Suppose it happens

[Random Account No6]

Shnozz said:

Not sure how true it is, but I once heard that it negatively affects your credit score to carry a positive balance on a credit card. Anyone more knowledgable than I care to confirm?

It reports as a zero balance usually so doesn’t impact it either way.

It can get you flagged for a fraud/AML check though sometimes and your card blocked.