Preloading Credit Card: How and Why to Do It Today

Are you planning on taking a trip out of the country and want to use your credit card instead of cash? Maybe you are just planning to make a big purchase that exceeds your credit card limit. You can do both of these things more easily by preloading your credit card. 

Preloading a credit card allows you to put money toward a large purchase on your credit card without the need to pay interest or fees on it. It will show up on your statement as a negative balance. It can help you save for big purchases, avoid fees, and helps ensure you can afford the payments. 

If you think preloading your credit card may work for you, here is everything you need to know about how and why to do it! 

How Preloading a Credit Card Works

For those who want to use their credit card without facing exorbitant fees, you need to learn how to preload your credit card. This essentially means that you are depositing money onto your card for you to later spend. Doing this is relatively simple, but it does require some advance planning on your part. 

How does preloading a credit card work? 

First, you need to figure out how much money you plan to spend on the card. This helps you to determine exactly how much money you need to add to the card. Perhaps you need to add just a couple hundred dollars or maybe you need to add more to cover the cost of a long vacation. Whatever you need, this is the time to evaluate your budget. 

The easiest way to preload your credit card is to pay the credit card company more than what you owe on the card. For example, you may owe $100 on the balance of your JetBlue Mastercard. If you want to preload the card for an extra $200, you would pay them $300 instead. 

As a result, this extra payment is credited to your account as a credit balance. It may show up on your statement as a negative balance. You can use it to purchase anything your heart desires.

If you need to learn how to activate a JetBlue MasterCard, we also created a guide on that topic.  

Do I Earn Points on Preloading My Credit Card?

The reason many people turn to use their credit cards is that they are offered perks like cash back or airline miles. If you prepay your credit card, do you still earn rewards points on those purchases?

In many cases, you might still be able to score those rewards points on your upcoming purchases. However, this can vary based on the card you use and the specific terms and conditions of your credit card agreement.

Before you plan on cashing in on those points, be sure to call your credit card company to check on their specific policy.

Benefits of Preloading a Credit Card

Is there really any benefit to preloading a credit card instead of just using it as normal? The good news is that there may be some financial benefit to preloading your card. 

To begin with, it saves you on the financial cost of using your credit card. Because you will have a balance carried forward, you will not be paying interest on your next bill. 

Preloading Credit Card

Keep in mind that you never pay interest on your credit card bill if you pay the statement off in full at the end of every month. Only a balance that carries forward is charged interest. You could still avoid interest charges if you set regular reminders to pay your bill and only purchase items you can afford. However, preloading is another way to avoid these fees. 

Another benefit is that it allows you to save money over time. If you are planning to make a large purchase such as a new computer or cell phone, you might not have the money to do so right away. You can preload your credit card with a small amount monthly until you reach your savings goal. 

This also allows you to determine whether you could afford the monthly payments. If you can’t keep up with preloading the card month after month, you may not be able to make the financial obligation you will incur. 

Planning in Advance for Your Purchases

The truth is that preloading your credit card can help you to plan ahead for your next purchase or trip. It forces you to consider what your financial obligation will be and then to save toward that end. This could be a great way for you to work on saving up for that next big purchase!