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Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

over the limit question

Recently  HSBC lowered my limit on 2 cards of mine without ever a late payment in a year on 1 and a year and a half on the other.  they told me it was an economic decision to lower some people's limits, however I am now $300 over the limit due to this on each card...they agreed not to charge me overlimit fees until I could pay it down or so to speak. BUT I wanted to apply for a card with another creditor and am now thinking other creditors  will see I have 2 cards over limit and flat out deny me. OR do they just see that as making my utilization higher .?and not technically see that any account in particular  is over limit and that it just hurt my utlization with my score?

I know I can pay the $600 and bring them under the limit but wanting to rebuild my credit more  and add another card and dissapointed at this happening

thanks for any insight on this!

Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008
0

Re: over the limit question

OUCH! :smileymad: That's awful what HSBC did.

 

Yes, unfortunately, this is going to hurt. It's probably killing your utilization. IF your overall utilization is maxed out or over the limit, it's going to hurt a LOT scorewise. Do you have other cards? What is your overall utilization?

 

Don't apply for more credit until you can get these HSBC cards paid off. I'm concerned that HSBC is just going to keep lowering you (chasing your balance) until your balance is $0. This would be a red flag to new creditors to deny you additional credit, and might even trigger 'universal default' with any other existing creditors (for revolving accounts), whereas they might start to lower your limits as well.

 

Is there any way you can PIF? If and when you can, go for a credit union.

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Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

Re: over the limit question

thanks lilmurth!

It will definatley hurt my utlization ..I am thinking it hurt me about 20%..but my concern is that other creditors can see that I am over on a particular card or two and think I just go over limits!!!! If I still have utlization available (even though not as much as before this) will they see that individual cards are over or does my utlization just look real high?

Also what is universal default??  because it is not like I defaulted ..no late pays at  all on either or any in the last 2 years.   How do they determine a universal default?  especially since I am making on time payments on everything?

i thought I would just transfer them to another card if I can get approved.

thanks for helping

oh by the way HSBC said it won't look like they lowered it and that it will just look like I am over..( wow thats consolation!!)

thanks

Mega Contributor
Creditaddict
Posts: 19,564
Registered: ‎10-23-2007
0

Re: over the limit question

If they just lowered the limits and new statements have not posted with showing the over limit, it probably hasn't been reported to credit yet therefore you could apply right now. but once it's on reports, going to really hurt you until you pay it down
Fico Scores: EQ 657 Cabelas, TU 662 Walmart, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Express $300
Over 40 Cards in between :smileytongue:
Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

Re: over the limit question

HSBC is really slow at reporting...but unforunately this month they just happended to report right away!...it hurt my utilization like 20% but my question is will the potentional creditor look at these limits individually or my utilization as a whole.?

thanks


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