Overpaid on credit card

basil_brush

Hi
This will probably seem like a silly question but.....I have cleared my balance on Tesco credit card, but my last payment was actually too much. Having looked at my credit limit it appears they have added the amount I paid too much onto my spending limit, so surely this would mean that if I spend on the card I am actually going to be paying interest(unless I pay it in full) on the amount I should be in credit?
The easiest option would be to phone them and ask them to clarify the situation, but I wondered if any of you guys had had a similar experience?
Any help would be appreciated.

Thanks

newfoundglory

Your post seems somewhat confusing. I don't have a tesco card... but it does seem highly unlikely if you repay your balance in full each month and more on top that they would charge you interest. I can't see that happening.

Your credit limit shouldn't have increased because of this. Your available balance (the amount you have available to spend) would have increased by the amount you paid to your account, whether this was an overpayment or not.

So, if you did not spend on your card since the statement date or you have spent less then the amount you overpaid by, your account should have a positive balance - which would be the same as your overpayment amount, or the overpayment amount less the amount you have spent since the statement date. If this is the case, your available balance would also be more that your credit limit.

If you have spent more than the overpaid amount on the card, then the overpaid amount would just go to making your next statement balance less, but would not mean that you don't have to make a payment to your account. You would still have to make the minimum payment (or more) between statement date and the date the payment is due.

ilovefreebies_2

thats how I see it aswell

empfun

Adding on you can always request your credit balance back. They would normally send you a cheque within 14 days.

basil_brush

Thanks alot to you all, think I might goive them a ring and ask for it back because I am not planning on using it again

Xbigman

Your credit limit has not increased *but* the amount available to spend on the card has. If you over pay by 100 pounds you are in credit. If your limit was 3000 then your available credit is reported as 3100, but your credit limit is still 3000. This appears to be done so you can over pay on purpose if your actual credit limit isn't big enough to buy something. IE a car.
If you want to buy a car for 5000 and your credit limit is 3000 you can over pay 2000 (available credit now 5000) and make the purchase. If they didn't report this as a credit limit increase the computer (bless it) would bounce you attempted payment for 5000 as your credit limit (and therefore your transaction limit) is 3000.
OK it could be done a lot better, but its not.
Regards



X

CLIVELESTER

:cool: If you overpay the balance owed on one card with a transfer to another credit card can you effectively get a cash advance FOC ?

Walletwatch

CLIVELESTER wrote:

:cool: If you overpay the balance owed on one card with a transfer to another credit card can you effectively get a cash advance FOC ?

Now, that is a good point. It'd remove the need for SBT cards like egg as mules, if you could overpay and then reclaim in cash. This would however mean a 14-day wait eating into your stoozing profits, to add to the BT charges that seem to have become the norm today anyway...