Putting Credit Card Account into Credit (Using It Like a Pre-Paid Card) ?

Related Stores

Coles

• 

  MITM on 13/03/2024 - 16:35

  +1

  Yes. But your HL application will reduce $1000 from max loan amount.

  • 

    melbourne guy on 13/03/2024 - 16:50

    Thanks for that. They have already factored in that I will be keeping the card with a $1000 limit and it won't make a difference in my situation compared to cancelling the card.

    • 

      MITM on 13/03/2024 - 17:02

      +2

      Just check if you make an ATM cash withdrawl of "your" money" you're not charged %.

      • 

        melbourne guy on 13/03/2024 - 17:06

        My plan is to not dump a whole heap of cash into the account, just enough to allow a decent amount of transactions without it bouncing, so it would be an extra $500-$1000 at a time. If there is any left over, i'm happy for it to sit there until the next payment is due. Once the new loan settles, i'll raise the limit.

  • 

    Nousernamehere on 13/03/2024 - 19:47

    +1

    But your HL application will reduce $1000 from max loan amount.

    It’s not a 1:1 reduction with what the credit amount is compared to your maximum borrowing capacity. Just putting in random numbers for someone on $100k with a 20% deposit a $1000 CC reduced borrowing capacity by $4000.

    For a $5000 CC it reduced it by $22,000.

    • 

      Mulga Bill on 13/03/2024 - 23:42

      on this tangent - from my experience the credit card is looked at 4% repayment of the limit so it is the repayment that reduces your borrowing power not the limit itself…so 4% of 1k = $40 less you have per month to pay on a home loan. Considering a home loan @ 6% has repayment of approx $40 per $7,000 the credit card is reducing your borrowing power by 7x the limit…when rates were 3% it was more like 9x.

      hopefully I have these numbers right but the theory should be right.

• 

  HardQuiz on 13/03/2024 - 16:47

  +2

  Yes, I’ve done it with other credit cards before.

• 

  Yola on 13/03/2024 - 17:00

  +1

  I have also done this with other CC.

• 

  JimB on 13/03/2024 - 17:05

  +3

  Plenty of people do this when they travel overseas or when they plan to purchase an item greater than the value of their credit limit.

  • 

    hasher22 on 13/03/2024 - 18:44

    Sad thing is, ING credit cards can't be in credit. But my st George card can when I had it.

    With ING, the purchase transaction needs to clear and then you can pay the card off. Even when the card is paid off, you can't add more monies into it. The max payment is your card limit.

    I remember with my st George, I would just pay it off back to $0 even when there were pending transactions.

    • 

      enthusiast on 13/03/2024 - 21:27

      Where does the money go if you pay over the ING card limit? (By BPAY etc.?)

      • 

        miwahni on 13/03/2024 - 22:29

        Good question - but you can't use BPay to repay ING card. The only repayment method is by payment from a linked Orange Everyday transaction account. I've never actually tried paying off more than the balance each month though.

        • 

          hasher22 on 13/03/2024 - 22:39

          @miwahni: Because you can't and ING won't let you make more than the limit.

      • 

        hasher22 on 13/03/2024 - 22:33

        You can't pay an ING CC from an external source, it's linked to another internal account, for example an everyday or savings account. You can only transfer internally.

        If you're waiting on a refund and the CC will go into credit, the excess credit amount will auto-transfer to the linked account.

• 

  Eeples on 13/03/2024 - 22:14

  In the past, and i expect to do the same in early 2025, I’ve got a balance transfer from one credit card to an existing credit card. Then rang up the existing credit card bank and asked them to move the extra (like $20k in credit) to my transaction account.

  Never had a problem. Never paid a fee for the move.

• 

  cheesecactus on 13/03/2024 - 22:24

  +1

  Yep, done it a lot with my coles card too.

  Although dont expect it to impact your borrowing power or ability to obtain a home loan. The main factor for them is 1. Having a credit card and 2. The credit limit. The fact that you use it as a debit card is largely irrelevant to them.

• 

  leiiv on 13/03/2024 - 22:26

  I don't quite get this. If the credit account has $1000 limit, and you put in $1000, does it mean that the provider will report $0 as the credit limit for the duration in which it is in surplus?

  • 

    miwahni on 13/03/2024 - 22:31

    No - provider will still report $1,000 as the limit, as that's the amount you can put the card into debit for. Regardless of whether you have $2k sitting in the account or a nil balance, the limit is still $1,000.

    • 

      leiiv on 14/03/2024 - 01:30

      Then how can it, as the OP said, "increase the options available to me" in regards to lending?

      • 

        melbourne guy on 14/03/2024 - 10:25

        +1

        I was referring to having a higher credit limit and dropping it giving me better loan options. My current limit is 22k, we originally toyed with lowering it to 10k but they found better options if I could bring it down to the minimum allowed which is 1k.

        • 

          leiiv on 14/03/2024 - 11:50

          +1

          @melbourne guy: Ah I got it now. Then if you put cash in eg $10k, then you'll get $11k limit on that card!

• 

  Mulga Bill on 13/03/2024 - 23:48

  From their T& C

  We may also close, cancel or suspend
  Your Account or any Payment Facility at
  any time at Our discretion. For example,
  We may do this where:
  • Your Account has not been used or
  has remained in credit balance for
  a reasonable period

• 

  MeesusEff on 14/03/2024 - 16:15

  Yes I always transfer in a couple hundred extra 3-4 days before my statement date so I don't have to worry about the 1% statement fee for shoppers protection if I do shopping in between the dates