"Overlimit amount on all revolving accounts"

Anonymous · ‎09-10-2016

Oddly enough Google returns no results for that string in quotes, but that's what's written on my CSP approval letter under the "Understanding your credit score" section. The scoring system name lists as "CARD ACQUISITION RISK SCORE" by Chase. I've got four other Chase accounts so CSP will be my fifth and final. However, I am definitely not overlimit on any accounts, much less all accounts. Any idea what this means specifically?

The only negative I've taken recently (and it was a big one) was an auto loan for about $80k -- is the "overlimit" part just some arbitrary limit that Chase looks for in revolving accounts maybe?

Berk · ‎09-11-2016

The Card Aquisition Risk Score is how Chase determines your credit worthiness. It is the name for their internal credit scoring system. Chase offers overlimit protection on all its credit cards. They will charge you for going over your limit but they claim that it saves you the embarrassment of being in front of people. I'm guessing that because you have multiple cards with Chase their system looked at the potential of you going over your limit with them on all cards simultaniously and factored that in their risk score.

I don't have any cards with Chase so this is pure conjecture on my part. Maybe someone who uses Chase will be able to provide better insight.

longtimelurker · ‎09-11-2016

@Berk wrote:
The Card Aquisition Risk Score is how Chase determines your credit worthiness. It is the name for their internal credit scoring system. Chase offers overlimit protection on all its credit cards. They will charge you for going over your limit but they claim that it saves you the embarrassment of being in front of people. I'm guessing that because you have multiple cards with Chase their system looked at the potential of you going over your limit with them on all cards simultaniously and factored that in their risk score.

I don't have any cards with Chase so this is pure conjecture on my part. Maybe someone who uses Chase will be able to provide better insight.

The CARD Act prevents issuers from charging OTL fees unless the customer has opted in (and I have never been offered that option with Chase or anyone else!). Instead they can decline the charge, or, with flexible spending cards, require that the OTL amount is paid in the next statement cycle.

Anonymous · ‎09-11-2016

~~Maybe it's an awkward phrasing of "You're over the limit of the number of accounts we will let you have acquired in the last 24 months." Are you at or over 5 new CC accounts in 24 months?~~

Edited: I misssed that it was an approval. Or maybe it was a branch approval?

Anonymous · ‎09-11-2016

Applied online and approved on the spot, no branch/phone call needed. It was just something that I noticed on the paperwork when I received the card. I have zero instances of going over my limit on any cards, but I'm wondering if that large of a revolving account is enough to throw a wrench in it. I can't imagine there are too many $80k+ auto loans floating around since from what I'm aware most luxury vehicle purchases are leases, not loans.

My three items affecting my score were:

NUMBER OF REVOLVING ACCOUNTS WITH A BALANCE CLOSE TO THE CREDIT LINE

OVERLIMIT AMOUNT ON ALL REVOLVING ACCOUNTS

NUMBER OF ACCOUNTS WITH A BALANCE CLOSE TO THE CREDIT LINE

Given that I have a $0 balance on all of my cards and the only debt I'm carrying is my student loan and the auto loan, I have to imagine all three are referring to the same thing. It's just the "all" that throws me. I have two other revolving accounts but they're both sitting at $0, definitely not "over limit", and the car one is brand new within the past two months and hasn't been late.

I don't see myself signing up for any more cards any time soon, and I'll be keeping the car for many years to come, so ultimately it's a moot point -- except for the curiosity part.

SouthJamaica · ‎09-11-2016

@Anonymous wrote:
Oddly enough Google returns no results for that string in quotes, but that's what's written on my CSP approval letter under the "Understanding your credit score" section. The scoring system name lists as "CARD ACQUISITION RISK SCORE" by Chase. I've got four other Chase accounts so CSP will be my fifth and final. However, I am definitely not overlimit on any accounts, much less all accounts. Any idea what this means specifically?

The only negative I've taken recently (and it was a big one) was an auto loan for about $80k -- is the "overlimit" part just some arbitrary limit that Chase looks for in revolving accounts maybe?

Sounds like a mistake to me.