How I Spent Way Over My Capital One Venture X Card Credit Limit

After my family repatriated from an overseas assignment, we faced an unusually large tax payment that had to be paid promptly to avoid penalties. My husband had previously paid some taxes using our checking account, and the shock and sadness of those lost credit card rewards have haunted me ever since. I was determined to quickly find a way to maximize this tax payment with a credit card.

After a failed request to increase the credit limit on my everyday personal credit card, I learned about an existing tool on my account that allowed me to temporarily access purchasing power beyond my credit limit. This little-known tool saved the day and helped me earn a ton of rewards I might otherwise have missed.

Here’s how to use this feature the next time you face a charge that might max out your credit limit.

How I Chose What Card To Pay Taxes With

I pay personal taxes through Pay1040, which charges a 1.75% fee for personal credit cards. My card of choice was my Capital One Venture X Rewards Credit Card, which earns 2x Capital One miles on everyday purchases, including taxes.

Capital One Venture X Rewards Credit Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

The Capital One Venture X card is an excellent option for travelers looking for an all-in-one premium credit card.

Capital One Venture X Rewards Credit Card

The Capital One Venture X card is an excellent option for travelers looking for an all-in-one premium credit card.

Welcome Offer

Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

75,000 miles

UP's Offer Valuation*:

$1,350

Annual Fee

$395

APR

Purchases: 19.49% - 28.49% (Variable)

Credit Recommended

Upgraded Points credit ranges are a variation of FICO^® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

Excellent

Why We Like This Card

The Capital One Venture X Rewards Credit Card is the premium Capital One travel rewards card on the block.

Points and miles fans will be surprised to see that the Capital One Venture X card packs quite the punch when it comes to bookings made through Capital One, all while offering the lowest annual fee among premium credit cards.

Depending on your travel goals and preferences, the Capital One Venture X card could very well end up being your go-to card in your wallet.

Pros & Cons

Pros

• 10x miles per $1 on hotels and rental cars purchased through Capital One Travel
• 5x miles per $1 on flights and vacation rentals purchased through Capital One Travel
• 2x miles per $1 on all other purchases

Cons

• $395 annual fee
• Does not offer bonus categories for flights or hotel purchases made directly with the airline or hotel group, the preferred booking method for those looking to earn elite status

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Card Highlights

• Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
• Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
• Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
• Earn unlimited 2X miles on all other purchases
• Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
• Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
• Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
• Receive up to a $120 credit for Global Entry or TSA PreCheck^®
• Top rated mobile app

Financial Snapshot

• APR: Purchases: 19.49% - 28.49% (Variable)
• Foreign Transaction Fees: None

Rewards Center

Capital One Miles

Because my tax bill exceeded my credit limit, I requested a credit limit increase, but I was immediately denied. I made a partial payment up to my credit limit and tried to come up with a plan B to finish the payment.

The next time I logged in to my Capital One account, I was targeted with a message about Capital One’s Confirm Purchasing Power tool. This essentially allows you to confirm whether you can make a large purchase beyond your credit limit without increasing it or risking the card being declined.

How To Request Capital One Purchasing Power

You don’t need to be targeted with a message — this tool is available to all cardholders.

After logging in to your Capital One card account, navigate to the gear icon labeled “I Want To…” Then click “Confirm purchasing power.”

This initiates a pop-up window where you enter the amount of your desired purchase. Because I had already paid a portion of my tax bill, I entered the remaining amount.

Capital One notes that this free tool can be used before any purchase and does not trigger a credit inquiry or affect your credit score. It also does not increase your credit line (Source: Capital One).

After submitting your amount, you receive a message confirming whether your request has been approved or denied.

The decision is valid only at the time of your request, so if you’re approved, try to make that charge before any others, as any changes to your balance could result in a decline.

What Happens When You Spend Above Your Credit Limit?

When Capital One honors transactions above your credit limit, your credit limit is not increased, and you’re still responsible for paying for the transactions made above that limit. You are not charged any fees for this extended spending courtesy, but you do incur interest charges on any balance you do not pay in full.

Since my Capital One Venture X card is my top everyday spending card, I paid part of the balance early to bring it below my credit limit. This allowed me to immediately get usable credit on the card again without waiting for the billing cycle to close.

Check Spending Power With American Express

Similar to how Capital One’s tool works, Amex cardholders can use the Check Spending Power tool to see if a large purchase would be approved.

Some American Express cards — like the Platinum Card^® from American Express, American Express^® Gold Card, and their business counterparts — have no preset spending limit. This allows cardholders to use their cards flexibly based on purchase, payment, and credit history (Source: American Express).

Final Thoughts

I had no idea that Capital One offered purchasing power, which enabled me to earn a ton of miles on a large expense instead of making an ACH payment and getting zero rewards.

When life throws an unusually high purchase at you — like a medical bill, a home expense, or a car repair — knowing that there are options to temporarily exceed your credit limit can change the game. What doesn’t change is that this extended credit must be used responsibly, so only take on a large expense if you can pay it off in full to avoid interest fees.