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Can I lodge money into my credit card account to get a negative balance?

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  • 09-03-2009 2:07pm
    #1
    maki
    Registered Users Posts: 772 ✭✭✭


    I currently have a stupidly low limit of €400 on my credit card but would like to purchase flights this week that are going to cost in the region of €700.
    Is it possible to transfer funds from my current account to my credit card account in order to give it a negative balance, thereby giving me the space to make a €700 purchase?
    Are there any fees associated with doing this?


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    #2
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    You can do this, and no it shouldn't cost you anything extra.

    The only problem with going "negative" is that if you try to draw cash from an ATM, you'll be charged a fee.


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    #3
    Gordon
    Registered Users Posts: 35,524 ✭✭✭✭Gordon


    Yeah, if you can't up your limit then you can tfr the funds. Might be an idea to ask them to up your limit for the next time this happens.


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    #4
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    Yes you can and no fees. Have you tried ringing the CC company and asking for an increased limit?

    Have you tried the 3V option?


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    #5
    maki
    Registered Users Posts: 772 ✭✭✭maki


    I must give them a call and up the limit, it's been nothing but an inconvenience.
    I'd rather steer clear of 3V, I've had nothing but bad luck with them before.
    Thanks for the help guys, much appreciated.


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    #6
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,215 Mod ✭✭✭✭godtabh


    seamus wrote: »
    You can do this, and no it shouldn't cost you anything extra.

    The only problem with going "negative" is that if you try to draw cash from an ATM, you'll be charged a fee.

    I thought if you lodged money to your account you would withdraw it like you would with an atm ie no fees

    If on the other hand you were using it with out any additonal funds ie within your credit limit they charge a fee


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    #7
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    kearnsr wrote: »
    I thought if you lodged money to your account you would withdraw it like you would with an atm ie no fees
    I didn't think so. I'd heard of people proposing it (so you could use your CC as an ATM card on holidays), but the primary drawback was that you'd be charged x% of each cash withdrawal.
    I'm open to be corrected though.


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    #8
    GerardKeating
    Registered Users Posts: 7,650 ✭✭✭GerardKeating


    kearnsr wrote: »
    I thought if you lodged money to your account you would withdraw it like you would with an atm ie no fees

    Nope, The withdrawl will go via the visa/mastercard network whom do not know your balance, and will charge your bank a fee for the transaction. Some banks might absorb the fee....
    kearnsr wrote: »
    If on the other hand you were using it with out any additonal funds ie within your credit limit they charge a fee

    If you Lodge funds on your credit card to increase the available credit, there are no additional charages compared to "normal" transaction.

    Some issuers even used to pay interest on positive balances...


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    #9
    GeeNorm
    Registered Users Posts: 162 ✭✭GeeNorm


    I have a BoI mastercard and always put it into debit before heading outside the eurozone.
    Pros: No atm fees which otherwise are min €2.50 per transaction or a %
    cons: The debit part is not insured if your card is swiped etc.
    Credit card exchange rates aren't great.

    No extra fees for doing this


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    #10
    Dearg81
    Registered Users Posts: 3,164 ✭✭✭Dearg81


    seamus wrote: »
    I didn't think so. I'd heard of people proposing it (so you could use your CC as an ATM card on holidays), but the primary drawback was that you'd be charged x% of each cash withdrawal.
    I'm open to be corrected though.

    This is correct, i got charged 1.5% cash advance fee for withdrawing from my credit card which worked out as €22.50. I was not very impressed when i saw my bank statement as i didnt know about the 1.5% charge at the time.

    Not all credit cards have this charge though, when i rang up AIB they said i could get a platnum card which has no such fee.


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    #11
    adox
    Registered Users Posts: 19,017 ✭✭✭✭adox


    Dearg81 wrote: »
    This is correct, i got charged 1.5% cash advance fee for withdrawing from my credit card which worked out as €22.50. I was not very impressed when i saw my bank statement as i didnt know about the 1.5% charge at the time.

    Not all credit cards have this charge though, when i rang up AIB they said i could get a platnum card which has no such fee.


    Cash advance fees are for CC that dont have any funds in them - hence a cash advance. Withdrawing cash from a atm with your cc shouldnt incur a cash advance fee.


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    #12
    Dearg81
    Registered Users Posts: 3,164 ✭✭✭Dearg81


    adox wrote: »
    Cash advance fees are for CC that dont have any funds in them - hence a cash advance. Withdrawing cash from a atm with your cc shouldnt incur a cash advance fee.

    Thats what i thought too but you're wrong. I had €1500 in funds in my visa account from poker winnings and transferred it to my current a/c and got charged a cash advance fee of €22.50.


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