Credit Card Refund?

falcon434

Hello everyone.

I have a question that I wish to be answered.

Scenario

For example:

I have a credit card with a £500 limit.

1) I make a purchase of £450, leaving an remaining amount of £50 left available on my credit card.

2) The company that I made the purchase from refunds the payment back to my credit card. My credit limit is now back upto £500.

3) I now use my card which has a £500 available limit to make a purchase of £400.

Will I be going over my limit?

What I'm basically trying to ask is, do credit card refunds still count towards the amount of credit you have used in a month.

Thanks in advance, looking forward to your replies.

bengal-stripe

falcon434 wrote: »

What I'm basically trying to ask is, do credit card refunds still count towards the amount of credit you have used in a month.

There is no such thing as 'credit to be used in a month'.

Your credit limit is an absolute limit at any given time. Once you have received a refund or have made a payment, you can go on spending. But you have to make sure the refund/payment has been received by the CC. So check on-line that the money has been received and has been credited to your account. Then the 'available credit' will show how much you can still spend.

Do not spend while the money is still in transit, then you would be exceeding your limit.

falcon434

bengal-stripe wrote: »

There is no such thing as 'credit to be used in a month'.

Your credit limit is an absolute limit at any given time. Once you have received a refund or have made a payment, you can go on spending. But you have to make sure the refund/payment has been received by the CC. So check on-line that the money has been received and has been credited to your account. Then the 'available credit' will show how much you can still spend.

Do not spend while the money is still in transit, then you would be exceeding your limit.

This thread says different.

I cant post links but Google search without quotations "moneysavingexpert 766027" to see the thread I'm talking about.

opinions4u

falcon434 wrote: »

This thread says different.

I cant post links but Google search without quotations "moneysavingexpert 766027" to see the thread I'm talking about.

Here's the link:

https://forums.moneysavingexpert.com/discussion/766027

The thread appears to be about the card company's refusal to increase a credit limit. It's a different subject.

leicsmarkyr

bengal-stripe wrote: »

There is no such thing as 'credit to be used in a month'.

I disagree there are some cards in particular business credit cards that only allow you to spend to your limit each month and does not take into consideration refunds. So if you have a limit of £500 and spend £400, then refund of £400 is applied you still only have £100 to spend that cycle.

It's rare I agree but happens.

falcon434

opinions4u wrote: »

The thread appears to be about the card company's refusal to increase a credit limit. It's a different subject.

In the thread the OP says that they've paid and never actually gone over the limit because they paid off their balance bringing it back to it's default amount before using it again. So even though they never went of their limit they have over the limit going out, if you get what I mean. & that's why the OP was no longer entitled to a credit increase because they went over the limit!

bengal-stripe

falcon434 wrote: »

In the thread the OP says that they've paid and never actually gone over the limit.

The OP says clearly that an increase had been denied as s/he had gone over the limit previously by one pound.

I was expecting to...receive a credit limit increase today,.... So I call up Capital One and...

Denied. Because, back in December, I went a pound over my limit by accident.

http://forums.moneysavingexpert.com/showpost.php?p=8930031&postcount=1

Log into your Credit Card account:

There you'll see "Credit Limit" and "available to spend". That is the limit minus all the monies lent at the moment. The to spend figure gets adjusted daily in line with more borrowing or received payments.

The limit remains static, although it might get adjusted occasionally (either up or down).