Can you put your own money on a credit card?

Don’t Deposit Cash, Transfer Funds: Boosting Your Credit Card Limit

The idea of adding your own money to your credit card might seem appealing, especially when you’re looking to increase your available credit. However, credit cards are not designed for direct cash deposits. While you can’t physically put cash on a card, there are other ways to effectively “boost” your credit limit.

The Key: Transferring Funds, Not Cash Deposits

The most common and efficient way to increase your credit limit is by transferring funds from your bank account to your credit card. This process essentially “pre-pays” your credit card balance, allowing you to spend more without exceeding your available limit. Here’s how it works:

1. Link your bank account to your credit card: Most credit card issuers offer the option to link your bank account to your card for online payments, transfers, and balance checks.
2. Initiate a transfer: Through your credit card account online or via your mobile app, select the option to transfer funds.
3. Enter the amount: Specify the amount you want to transfer.
4. Confirm the transfer: Review the transfer details and confirm the action.

Why Not Cash Deposits?

Credit cards are designed to function as revolving credit, meaning you borrow money from the issuer and pay it back over time. Cash deposits disrupt this system, as the funds become part of your balance rather than an available credit limit.

Benefits of Transferring Funds:

• Increased credit limit: By transferring funds, you essentially boost your available credit, giving you more flexibility in your spending.
• Convenience: The process is quick, easy, and typically completed electronically.
• Better credit utilization: Reducing your credit utilization ratio (the percentage of your available credit you’re using) can improve your credit score.

Important Considerations:

• Fees: Some credit card issuers may charge a fee for transferring funds from a bank account.
• Timeframe: Transfers usually take a few business days to process.

In Conclusion

Boosting your credit card limit doesn’t involve putting cash on the card itself. Instead, leverage convenient bank transfers to effectively “pre-pay” your balance and increase your available credit. This approach gives you the flexibility and financial control you need while maintaining a healthy credit utilization ratio.