Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Limit on credit card

Options
  • 02-04-2015 4:04pm
    #1
    CiniO
    Registered Users Posts: 16,067 ✭✭✭✭


    I never had credit card, so I'm completely not informed about it.

    Let's say you get credit card with monthly limit of 3000 euro (I assume it's normal to have a limit on credit card).

    Say you rent a car, and use your credit card as a deposit (most rental companies require it). Let's say they do pre-auth on your card for a value of excees which is 1500euro.

    Does that mean that it already used 1500 euro of limit, so there's only 1500 euro limit remaining, so I'm left with only 1500 euro transaction I can do with my card that month?


Comments

  • Options
    #2
    Nervous Wreck
    Closed Accounts Posts: 16,115 ✭✭✭✭Nervous Wreck


    Yes.


  • Options
    #3
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    CiniO wrote: »
    Let's say you get credit card with monthly limit of 3000 euro (I assume it's normal to have a limit on credit card).

    It's not a 'monthly' limit, it's an overall limit on how much you can rack up as a debit balance.

    The answer as above to your questions is 'yes' though you won't see the amount reserved on your bill and it won't cost you anything in interest, it's a completely invisible process. However it does mean that you need a credit limit which covers the amount you will spend on the charge for the car hire and the amount the car hire company (and hotel) will reserve.

    If you're thinking of using it for car hire in the future, you'd probably be best to get the card ASAP, you will probably start with a low balance. Use it for a couple of months, pay back the full balance each time, then tell them that you want to use it to hire a car and ask for a limit raise.


  • Options
    #4
    Humour Me
    Registered Users Posts: 360 ✭✭Humour Me


    It's not a limit for the month, you would only be able to spend €1500 until you paid back some or all of the credit that you used. The limit doesn't reset at €3000 the following month.


  • Options
    #5
    CiniO
    Registered Users Posts: 16,067 ✭✭✭✭CiniO


    coylemj wrote: »
    It's not a 'monthly' limit, it's an overall limit on how much you can rack up as a debit balance.
    OK, I didn't know that.
    The answer as above to your questions is 'yes' though you won't see the amount reserved on your bill and it won't cost you anything in interest, it's a completely invisible process. However it does mean that you need a credit limit which covers the amount you will spend on the charge for the car hire and the amount the car hire company (and hotel) will reserve.
    So in short if I understand correctly with €3000 limit, if car hire deposit is €1500, I have only €1500 left to spend on my credit card, until I hit the limit.
    If you're thinking of using it for car hire in the future, you'd probably be best to get the card ASAP, you will probably start with a low balance. Use it for a couple of months, pay back the full balance each time, then tell them that you want to use it to hire a car and ask for a limit raise.

    I was thinking about getting one, but I'm not sure if I need one.
    For last couple of years I was using Mastercard issued by foreign bank, which in fact is a debit card, but works as credit card (it's normal Mastercard not Mastercard debit), therefore I can use it for car hire, hotel bookings, etc..
    Problem with that is that amount pre-auth by car hire company needs to be on the account that card is associated with, and it gets blocked.
    So if I have €2000 on the account, and hire a car with deposit of €1500, then while money is not taken out of account, but they are being blocked and I can not use them, so I have only €500 left on my account for other spendings, until I return the car and pre-auth is cancelled.

    I was thinking about getting credit card then, but afair it's €30 a year in government taxes which I'd hate to pay.
    What's the average limit on credit card they issue, and what does it depend on? You salary, or credit history, or something else?
    |


  • Options
    #6
    Paul.k.b.90
    Registered Users Posts: 113 ✭✭Paul.k.b.90


    CiniO wrote: »
    What's the average limit on credit card they issue, and what does it depend on? You salary, or credit history, or something else?
    |

    Most banks offer different "types" of credit cards. The main difference would be an increased limit or lower interest rates etc if your lucky. AFAIK banks tend to have cards with a limit of 1000 and 3000.. but these can be increased at the banks discretion and this is dictated primarily by the things you stated above, Salary, credit history etc


  • Advertisement
  • Options
    #7
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    CiniO wrote: »
    So in short if I understand correctly with €3000 limit, if car hire deposit is €1500, I have only €1500 left to spend on my credit card, until I hit the limit.

    Yes
    CiniO wrote: »
    What's the average limit on credit card they issue, and what does it depend on? You salary, or credit history, or something else?

    Depends on a number of things - (1) which bank you're asking (2) how long you've had an account with them (3) whether their policy says that you start off with a really small limit or they give you a decent limit from the start (4) what they think you can afford to spend


Advertisement