Timing of Balance Reporting

[flapjack]

Hi All,

I recently took out a cash advance on my Investex Mastercard (a local CU) for the full limit of my available credit. A couple of days later before I even had a chance to get a bill, I got a warning from my CMS saying I had a card over limit and sure enough, they had reported by balance plus a couple of days interest. I understand advances begin accruing interest immediately but shoudn't I ordinarily be afforded the opportunity to make a payment before the interest is applied to my balance ? How will this hurt my credit ?

Thanks,

Flapjack

[enharu]

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@flapjack wrote:

Hi All,

I recently took out a cash advance on my Investex Mastercard (a local CU) for the full limit of my available credit. A couple of days later before I even had a chance to get a bill, I got a warning from my CMS saying I had a card over limit and sure enough, they had reported by balance plus a couple of days interest. I understand advances begin accruing interest immediately but shoudn't I ordinarily be afforded the opportunity to make a payment before the interest is applied to my balance ? How will this hurt my credit ?

Thanks,

Flapjack

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for cash advances, the interest is applied to your balance immediately on a daily basis. it may just reflect as a lump sum payment at the end of each cycle rather than to show a daily interest charge on your statement.

having an overlimit card can hurt your credit scores since your utilization is now very high, but once you pay it off / down, your scores will recover, since FICO only cares about your current utilization.