Cap One over the limit

[FIRECOURAGE]

I have a $500 credit limit on one of my cap one cards. I came close to maxing it out & was going to pay it all off this Saturday but I just got an alert from CCT that says CapOne has flagged my account as over the limit. Looks like the interest kicked in and brought the account over the limit. I have since paid some on it and will pay it off Saturday.

Will being flagged as "over the limit" affect my score?

[RobertEG]

Yes, a maxed card has substantial scoring implications, but that is only temporary and not your primary issue.

Scoring of % util is only based on y our currrent CL and balance, so theoretically, once you pay it down, you should expect your score to recover.

However, many creditors will re-evaluate your credit limit once you have maxed out your card, and decrease your credit limit as you pay it down.

That will prevent you from recovering your score as ou pay down the debt.

I would make sure that the card does not remain maxed for any period of time, thus reducing concerns by the creditor, and hopefully avoding a credit limit decreae.

[Anonymous]

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@RobertEG wrote:

Yes, a maxed card has substantial scoring implications, but that is only temporary and not your primary issue.

Scoring of % util is only based on y our currrent CL and balance, so theoretically, once you pay it down, you should expect your score to recover.

However, many creditors will re-evaluate your credit limit once you have maxed out your card, and decrease your credit limit as you pay it down.

That will prevent you from recovering your score as ou pay down the debt.

I would make sure that the card does not remain maxed for any period of time, thus reducing concerns by the creditor, and hopefully avoding a credit limit decreae.

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With Cap One this should not be an issue. I've had mine go overlimit for several months, and they never lowered my limit.

[CH-7-Mission-Accomplished]

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@RobertEG wrote:

Yes, a maxed card has substantial scoring implications, but that is only temporary and not your primary issue.

Scoring of % util is only based on y our currrent CL and balance, so theoretically, once you pay it down, you should expect your score to recover.

However, many creditors will re-evaluate your credit limit once you have maxed out your card, and decrease your credit limit as you pay it down.

That will prevent you from recovering your score as ou pay down the debt.

I would make sure that the card does not remain maxed for any period of time, thus reducing concerns by the creditor, and hopefully avoding a credit limit decreae.

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How does this work with signature cards,, e.g., Visa signature?  Let's say you have a 10K limit, and you have 25K approved and billed.  How does that impact your score?

Seems there is no point to a signature card if it trashes your credit.