Credit Card went $1 over limit for 1 day - will that affect my credit report?

[Anonymous]

I cancelled a recurring subscription 2 months ago but the payment just came out and my credit card went $1 over the limit and I paid it off immediately. Will that report to my credit report? What type of score impact will I have?

[Adkins]

This really depends on the creditor. I recommend you call and ask them if they'll report it or just report your regular statement balance at the end of your billing cycle. 

[Anonymous]

What is the date of your last credit report?  If this happened mid-cycle you are likely OK (though see AA below).

One thing to consider is that, if a single fairly small charge could cause you to go over your credit limit, then that card is basically maxxed out which is very bad for your card and your score -- even if the mistaken charge hadn't gone through.  The ultra high utilization is hurting your score, the interest is hurting your wallet, and the issuer might be contemplating taking Adverse Action against you because you represent high risk.  Google Adverse Action and also Balance Chasing to learn more.

[Anonymous]

Thanks for the response - I pay my cards off each month before the statement date. This month I made a large purchase so that I could get the rewards and was already intending to pay it off immediately but as fate would have it, this company incorrectly charged me a monthly fee which should have not come out

[EAJuggalo]

What lender?  More than likely you'll be fine.

[Anonymous]

NFCU

[Anonymous]

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@Anonymous wrote:
This month I made a large purchase so that I could get the rewards...

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Can you clarify what you mean by this statement?  On the surface it sounds like you're spending in order to achieve rewards, which definitely isn't a sound financial decision.

[Anonymous]

I had a major purchase to make - appx $4500. I could have paid it in cash but opted to pay with a Rewards Card and then pay it off completely as soon as the charges posted. No balance carried - no interest.

[JVille]

I get it! I recently bought living room furniture which I had cash for but put it on my Chase Sapphire Reserve to get points, I paid the card off the following week prior the stmt closing. Yes people do this, in my case it allows Business Class flights to Europe for free. I call that a wise investment. I also pay my cards off in full each month.

[Anonymous]

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@Anonymous wrote:
I had a major purchase to make - appx $4500. I could have paid it in cash but opted to pay with a Rewards Card and then pay it off completely as soon as the charges posted. No balance carried - no interest.

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I would have let the charge post to statement then pay it on due day, keep the $4500 in high yield savings for up to 55 days (depending on when the charge is made) and take full advantage of the grace period (still not carrying balance and paying interest), the only thing is your score might take a temporary hit but will rebound next cycle when you PIF on due day. Unless you know you're about to apply for new credit, micro managing your UTI is completely pointless and wasteful, just setup autopay to PIF on due day for all your cards and spend your time and money on more important stuff.