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@Anonymous wrote:Oh. Well I can't do that. I mean on my credit report they've got the numbers. They'd be watching me.
but I'd look into that $14K over? What card allows for that? That sounds like it would be inconvenient to have to pay.
My Southwest card allows me to go 14k over before stopping it. We use the heck out of it because of the points and we travel a lot. It allows us to get the free companion pass for a year (hubby flies free) and with all the points, me and our daughter fly free as well. It's a win-win situation.
@audia4 wrote:
@Anonymous wrote:Oh. Well I can't do that. I mean on my credit report they've got the numbers. They'd be watching me.
but I'd look into that $14K over? What card allows for that? That sounds like it would be inconvenient to have to pay.
My Southwest card allows me to go 14k over before stopping it. We use the heck out of it because of the points and we travel a lot. It allows us to get the free companion pass for a year (hubby flies free) and with all the points, me and our daughter fly free as well. It's a win-win situation.
$31k total???? I want whatever job you or your husband has.....
I wonder if it's a charge
@Jarrodpd wrote:
@audia4 wrote:
@Anonymous wrote:Oh. Well I can't do that. I mean on my credit report they've got the numbers. They'd be watching me.
but I'd look into that $14K over? What card allows for that? That sounds like it would be inconvenient to have to pay.
My Southwest card allows me to go 14k over before stopping it. We use the heck out of it because of the points and we travel a lot. It allows us to get the free companion pass for a year (hubby flies free) and with all the points, me and our daughter fly free as well. It's a win-win situation.
$31k total???? I want whatever job you or your husband has.....
Yes total on that card (which equals out to $14k over my credit limit). LOL Many of our cards let us go over the CL and we've never had a problem in the past. Maybe it's just because they know we always PIF and it shows this in our history so they continue to let it go up. When I first got the card, they allowed us to go to $21k. Then $25k...up until now $31k. I imagine they'll keep letting in increase (as they have each month) or eventually get smart and just up the limit.
I was over the limit on my FHB card and in my CR it stated over under high balance displayed that number. Also, in text in the payment history it stated the amount and displayed the year that it happen. I wrote a GW letter and they removed it. It did not affect my credit score and FHB explained that it is a WEMC and I can go above the limit. I still didn't want that in my report. Anyway, I think your scores are dropping because of the high utilization and not over the credit limit. If you missed a payment even once, that could also drop your scores hugely. Once you bring your utilization down, your scores should go back to normal or even better 1-9% on each individual card and 1-9% overall utilization will give you a good score. 1-3% is the best score GL and hope you bring them down
@Anonymous wrote:
I know utilization is important when it comes to credit scores. The effect of being over the credit limit on my credit score is—bad.
You don't have to be over limit for it to be bad. 30% is a generally suggested max. Not ideal but a suggested max. Lower is generally better as long as you don't have all your revolvers reporting 0 balances as there is a hit for that. Ideal is under 10%.
It's not just scoring impact that matters. Revolving utilization is a risk factor. Short term high utilization generally isn't an issue but if your cards are maxed or high for a prolonged amount of time you can run the risk of adverse action. Get those balances down ASAP and address whatever led to your situation or else you won't be able to make long term progress.
@Anonymous wrote:
My question is: whenever I'm over the limit, are these credit card companies reporting this to the three credit bureaus as a negative information similar to what a late payment would look like?
No. Payment History is basically whether you're on time or not. Being overlimit affects your revolving utilization (falls under Amounts Owed).
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
@Anonymous wrote:
+1 the only thing to add is the relationship of internal scoring with each bank that you went over with. sometimes that screws you out of future credit limit increases, cap1 acct combos etc. Their fine print is to never be late and never go over the limit. A FICO score is a score often has little to do with the philosophies of each Bank..
Score is always just one consideration and it's never just about score despite how many seem to assume that they can determine approval, limits, etc based solely on score. The creditor/product's underwriting criteria also matter. CLI's are based on what one's credit profile and income qualify for. Creditors generally don't track historical utilization and consider current information.
Whether one can go over limit or not depends on the specifics of the product. There are NPSL credit cards that certainly allow one to exceed the limit though one has to immediatly pay the amount over the limit.
@Anonymous wrote:But will I be able to get right back to where I was after a month or two of having low limits again?
Low limits or low balances? Don't conflate the two. Revolving utilization = balance(s) / limit(s).
As stated above, your revolving utilization is determined based on currently reported balances and limits. If you take a hit from high utilization and going overlimit then your scores will recover when your revolving utilization drops and you're not overlimit.