G’day,
Just a basic question actually… the limit on my CC is 26K. last week a person paid in some money early, and now the actual amount in the account is just under 28K.
Is the ammount over the limit mine to do as i please?? or if i withdraw it, say to an ammount just over my limit, will that debit be charged as a normal cash advance at 16% or there abouts???
Thanx!,
Jason
hi teacherk6
Check with the bank if you go over your limit you get hit with penalty rates and they can be very high nearing shark rates of 32% per annum so check.
No problem running up your credit card as long as you can run it down quicker before the due date of payment.
cc are nessesary evils but they are a tool to be used as such and must be kept under control.here to help
Hello again,
I believe you hav mis understood my situation. My credit card is in actual fact “in credit” to the amount of $2000. ie, 26K credit limit with 28K available funds. I hope this clears it up…
I have never paid a cent interest on a credit card in 3 years, in fact they are in themselves a chashflow positive investment if used correctly.
Im gonna call the card company this afternoon but i fugured im online so ask anyway…
Jason
ok im just editing my reply… if i read it again perhaps u do understand what i was saying, so am i to believe that if i pay too much money into my credit card and go past the limit, then i get penalised as well???
hi teacherk6,
I thought that was what you were saying but grossrealisation threw me.
Yes your bank will likely charge you the nominal fee related to a cash advance, say $2.
If you say withdraw $2500 ,they will charge you intrest from date of the dithdrawal interest at 16% on the $500 new credit balance.
If you withdraw $1900. your only cost will be the $2 advance fee. This will depend on the bank though.Mal
Getting out of your comfort zone, can help you become comfortable
Hehe Jason, this is an unusual question!
I have no answer, but am curious to know as well. Will you keep us updated?
I expect the answer to be that this couple of thousand credit is for you to use without attracting interest.
It seems unfair to me that you’d have to pay interest over the amount that is yours, really.But than again, banks might think differently![buz2]
Celivia
I’d think that you would not incurr any fee..but you will also not make any interest on the balance above your limit either..CC’s are not good places to save.. ;O)
In fact in your situation wouldn’t it be more like having a debit Card?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi all,
I think you’ll find that Shwing is correct. Credit Cards are an account like an overdraft and as such behave very similar. If in credit you earn interest, miserably little as it is but interest non-the-less.
Any amount over the limit is yours to do with as you please – no interest incurred, service fees, however, do apply and are bank specific.
As soon as yuo draw on your credit (ie: using the CC credit amount – like in a loan) you incurr interest! Credit Cards calculate interest every day wether you have interest free days or not – the interest may not be applied to your account as long as you pay before the end of your interest free days.
So, …
Yes your bank will likely charge you the nominal fee related to a cash advance, say $2.
If you say withdraw $2500 ,they will charge you intrest from date of the dithdrawal interest at 16% on the $500 new credit balance.
If you withdraw $1900. your only cost will be the $2 advance fee. This will depend on the bank though.… applies at all times!
Hope that nails it.
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonHi TeacherK6,
I had the same scenario 6 months ago. I didn’t have time to get an increase approval on my credit card, but I wanted to use the card for a large purchase to get the extra points. I injected $5k into my cc and withdrew on the balance and paid it off (as always on the last day of repayment).
I don’t recall any fees and at the time I remember asking pretty much your question with the bank, which said ok. My cc is with Visa ANZ.
Hope this helps.
Cheers,
Gatsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
I have just this week been told that I can deposit funds into my Westpac mastercard (making it a credit balance) so that when we go overseas I can draw on the mastercard which is in credit.
I will double check with another branch before I do so.
Wylie.
Wylie is correct.
I have just come back from overseas where I used my mastercard as a debt card and had my spending money put onto it so my card was infact in credit. It would have worked really nwell except I had my wallet stolen in Rome!!Even the best plans sometimes fail
And if you’re the kind of person which likes to get their own back on the credit card company you could leave the money on the card for a few months.
A friend did this a few years ago and after a couple of months the CC company was calling him every week asking him to spend the money. Evidently CC companies hate PAYING interest…Originally posted by markdangerous:And if you’re the kind of person which likes to get their own back on the credit card company you could leave the money on the card for a few months.
A friend did this a few years ago and after a couple of months the CC company was calling him every week asking him to spend the money. Evidently CC companies hate PAYING interest…Sounds like a great game..[lmao]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThanx for the replies
Decided to just leave it there… it will get used up anyway with purchases…
Jason
PS..Got to love the points
PPS.Yes Rome is a seedy place, happens all the timePerhpas it depends on the bank, but when we’ve banked extra in for overseas travel we have still attracted bank fees when withdrawaling the money ie: it’s a cash withdrawal regardless of whether the money is mine or there’s, however, we didn’t pay any interest on it as the money was mine. They definitely didn’t pay us any interest on the funds we had in there.
PK
In a previous life I worked in a bank,and my heart wasn’t really in it,so I would try to help out the regular customers as I could.Often they would come i n and want to draw on a cheque that they were depositing straight away.I would quietly tell them that if they had a zero or credit balance on their cc,they could deposit the cheque in there and withdraw it straight away.No interest,no fees.And inerest was paid on any credit balances.That was with ANZ,but I don’t know if it still works.
Tools
You must be logged in to reply to this topic. If you don't have an account, you can register here.
