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Folks,

Wanted to pay property tax using my Discover Card. Good thing is I got a targeted promotion on the card with some CashBack bonus if I spend $3000 or more by end of this year, and the CashBack more than covers the fee charged by the County tax collector. The trouble is, the Card has a paltry $500 limit

What are the possible solutions? Called Discover Card asking to transfer some credit limit from my other card, and got refused. Then asked to increase the credit limit, but that needs a hard pull.

Can I overpay the card by $2600? With that, can I charge max $3100 to the card?

Any other suggestions?

Thanks!

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I don't recall if this works for Discover, but it doesn't work for most CCs. More than that, it's just a bad idea - a big credit balance is a red flag and companies have been known to close your credit card for having unusual credit balances. If your card is closed, you'll lose all the points.

I suggest charging $500 a pop and paying off the balance as soon as it shows up online.

Thank you for your warning it is a bad idea!

Regarding the idea of charging $500 then paying it soon, unfortunately the tax collector's web site does not take fractioned payments.

Oh well... guess I might have to pass this one.

Call Discover and ask for a limit increase. You can tell them you need more cash/credit available since your situation has changed since you opened the card, or that you intend to travel... It worked for me in the past. Also, threaten to cancel it or try maxing it, they'll automatically give you a limit increase soon. Hard pull will only affect your score few points for a short while...

Quote: Can I overpay the card by $2600? With that, can I charge max $3100 to the card?

Doing so WILL get that card flagged and locked. Over a decade ago, there was a wave of that kind of thing followed by usage fraud.
I was working credit card security in that era.

I was in a similar situation once and Chase temporarily increased my CL. Maybe Disco can do the same.

AMEX allows this. don't know about discover.

xerty said:   I don't recall if this works for Discover, but it doesn't work for most CCs. More than that, it's just a bad idea - a big credit balance is a red flag and companies have been known to close your credit card for having unusual credit balances. If your card is closed, you'll lose all the points.
Especially if you proceed to place a single purchase for 6x your credit limit...

they want you to spend 6x your credit limit in 6 weeks?

RedCelicaGT said:   they want you to spend 6x your credit limit in 6 weeks?

I was wondering the same thing...I would point this out to them as a basis for a CL increase without the hard pull.

Discus the issue with Discover. They may have a solution for you. Maybe they have a secured product. Agree with the statements about creating large credit balances out of nowhere. Small ones don't matter as they can happen in the course of using the card. But a large overpayment without telling them first do not do.

I had ever asked discover the same question. The answer is no. You can spend a little bit overlimit and they can let the transaction pass. But you seem to require too much.

Just call them and tell them exactly what you plan on doing. Ask them what is best.

JW said:   Quote: Can I overpay the card by $2600? With that, can I charge max $3100 to the card?
Doing so WILL get that card flagged and locked
Discover wont allow such a $3100 charge to go through anyways

worldstrategy said:   Then asked to increase the credit limit, but that needs a hard pull.So what? Think about how this sounds - "I wnat to borrow more money, but I don't want you to check my credit."

The FW credit score obsession continues...

Go get a vanilla prepaid, load it on a bluebird, hen pay it off using the bluebird. No convenience fee from property tax but you pay convenience on the vanilla

Another vote for call Discover and ask to prepay $2600. In that way, they have no risk of default since they will have your money in hand before they process the payment. You have no risk of showing over your credit limt. They also make the credit card fees so it is a win for them. If they say OK, pay Discover $2600, wait for the payment to post, then immediately make the tax payment so the large credit is not lingering out there for some computer to decide they need to pay you back or lock your account.

Ask for a limit increase. Tell them you are planning a larger purchase and have money to pay off your balance in full. If your income increased since you applied - mention that as well.

Many (if not most) card issuers would raise flags even if you spent $400, paid $400, spent another $400, and paid it right away, within days. This is because the limit was meant to restrict their monthly risk exposure to your spending. They decided on $500, now you are way over it. What happens if tomorrow you call and start disputing those charges, or your payments get reversed?

xerty said:   I don't recall if this works for Discover, but it doesn't work for most CCs. More than that, it's just a bad idea - a big credit balance is a red flag and companies have been known to close your credit card for having unusual credit balances. If your card is closed, you'll lose all the points.

I suggest charging $500 a pop and paying off the balance as soon as it shows up online.


I've carried over 5k credits on Discover and Chase regularly and it's never been an issue...I don't see why it would be?

EDIT: I also spend over 75k on each of my cards.

Arris1 said:   EDIT: I also spend over 75k on each of my cards.

A credit of 7% of your credit line is different than a credit of 10x your credit line.
That would be like you having a $750k credit.

vipercon said:   Arris1 said:   EDIT: I also spend over 75k on each of my cards.

A credit of 7% of your credit line is different than a credit of 10x your credit line.
That would be like you having a $750k credit.


It's about 50% of me CL... Discover only has me at 11k..

Albeit a whole other story... I did once get a call from discover telling me I earn too much Cash Back and they're going to close my account for spending too much money. So I had to cut back spend on their card. I found it really weird.



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