Ugh. Overlimit on a card. Hurt mortgage app in a few months?

[Juniper117]

My wife rented a movie at Redbox and never returned it. My $300 limit Cap 1 card is now a few bucks overlimit. I'm going to pay it off this week, but what impact does that have? I plan on applying for a mortgage in March.

[laz98]

it will only hurt you if it reports to the credit bureaus.

[Juniper117]

It just reported. That's how I knew it was over the limit.

It seems that what I'm seeing says it will have no impact once the card is paid down/off. I guess I am asking if it is something like the 'no late' rule, where one late in 12+ months keeps you from a mortgage. There is no impact such as that, correct?

[laz98]

oh, LOL...now i feel dumb

i don't know exactly how it affects a mortgage, so i'll shut up now.  i thought maybe it hadn't reported yet, & you had caught it in time.  sorry about that.

[Revelate]

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@Juniper117 wrote:

It just reported. That's how I knew it was over the limit.

It seems that what I'm seeing says it will have no impact once the card is paid down/off. I guess I am asking if it is something like the 'no late' rule, where one late in 12+ months keeps you from a mortgage. There is no impact such as that, correct?

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I'm struggling to find a more trivial reason to go over limit on that, and I'm quite certain any loan officer looking at your report is going to feel the same: they may even get a laugh out of it.

I seriously doubt there's any hard and fast rule on it, and actually the one late thing is likely also not immutable though with today's ecomonic times it may well be the case for some lenders.  If your finances support it, there's always a way to get around it, though it may be a little more painful than it would've been otherwise.  Just explain what happened in a self-deprecating fashion and go on with life during the manual review step.

Come to think of it, it may even be neutral or even a bonus: you used more credit than you were granted, and you PAID IT on time.  You weren't late, all that really says is hey, maybe you should have a higher credit limit.  I really wouldn't worry about it, and you might even get a CLI out of it.

[llecs]

OP, there will be no impact to your future mortgage app, so as long as you get the balance to report lower before the app. CC utilization, including being over the limit, is a snapshot in time. There is no permanent damage and any score ding will disappear next month as the balance reports lower if paid.... And there wouldn't be a late reporting due to being over the limit.

I too was worried. I had a couple of TLs in the past that reported that way and resulted in a temporary ding. I even brought it up with the LO and she made a valid point that in the era of CLDs, it isn't uncommon to see the "high balance" greater than the reported "credit limit". Our bank ignored it and I made sure the balances were in check before the app.

[Booner72]

My First Premier continuously reported High Limit as 441 even though my limit was 400.  No one batted an eye.

[IOBA]

Make sure Cap 1 doesn't report a 30 day late and you should be fine.

[Anonymous]

So long as you weren't late you should be fine. It's generally the card issuer that dings you for an overlimit fee, shouldn't affect your mortgage.