If you’re in a bind, urgently need to spend more than the current credit limit on your card, and have been denied by your bank or credit issuer, there is a way to temporarily spend more than your limit allows. This easy hack can give you the credit “extension” you need.
The trick is simple, and comes straight from the horse’s mouth, in this case, a bank teller we spoke with. In an interview, a bank teller at one of the major banks gave us this tip on temporary increasing your spending limit — pay more than you owe on your your credit card balance. Doing this will allow you to spend above your credit limit.
Here’s how it works
- Let’s say you have a credit limit of $1,000, which means $1,000 is the maximum amount your credit card issuer will allow you to borrow.
- In order for the hack to work, you should pay more than your owed balance. In other words, if you needed to purchase something that cost $1,300 you would have to pay $300 past your credit limit.
- Pay your balance, plus more. If you have a balance of $100 on your card, pay $400 from your checking account to your credit card bill.
- When the money clears, you will have a negative $300 balance on your card, which means you can now charge $1,300.
The downside to this hack is that you need to have cash on hand in order to boost your limit. Without having enough money to increase your credit limit up to amount you need, you won’t be able to hack your limit.
Another potential drawback to this hack is the element of the unknown. Little research has been done on whether there is a cap to how much you can pay your credit card, since most consumers only pay the minimum balance, or their balance in full. However, as a financial strategy, this trick serves as a short-term way of stretching your charging power in emergencies.
As of now, there are no known fees associated with this trick. (Although this could be subject to change in the future, depending on your card issuer.)