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$2 over limit on my statement...

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$2 over limit on my statement...

So an interest charge pushed me past my limit by about $2 on my First Bankcard card. I paid it immediately and got myself back where I need to be, but I'm just wondering, will this have any great negative effects on my credit score? Working on building it back up here.

5 REPLIES
Valued Contributor

Re: $2 over limit on my statement...

You may lose points for the utilization.

 

BUT more importantly, you should not be operating close to your limit like that. Especially during rebuilding. Below 10% is the ultimate goal; otherwise be sure to stay below 30%. Meaning, learn your statement date (when they cut the statement) and be sure that you are below the 30% by that date. 

11/2017: EX 704 | TU 720 | EQ 672 -- Starting (2/2016): 630 | 620 | 580 -- INQs: 17 | 26 | 28 (last 6 months: 5 | 2 | 6)
AMEX Delta: $10k, Marvel: $8k, Discover IT: $7.2k, AMEX BCE: $6k, Target MC: $5k, PayPal 2%: $8k, CO QS: $2.6k, Merrick: $1.6k, Barclay's NFL Rewards: $1k, CO BuyPower: $500. And a mix of well-loved store cards.
Message 2 of 6
Valued Contributor

Re: $2 over limit on my statement...


Brently986 wrote:

So an interest charge pushed me past my limit by about $2 on my First Bankcard card. I paid it immediately and got myself back where I need to be, but I'm just wondering, will this have any great negative effects on my credit score? Working on building it back up here.


It really depends on what the balance shows on your statement summary. It is the statement balance that gets reported to the CRAs and is used in calculating card utilization. So, if the high balance "max out" was mid cycle and paid down before the statement cut, then you may not see a point drop.

 

However, any balance over 90% of CL is considered "max out" and if it was a statement summary balance so may experience a rather large score drop. Fortunately utilization is a point in time calculation. As a result, if you keep your card's reported balance down to a reasonable level (say under 30% of its CL) your score will recover quite a bit.

 

Side note: Credit reports do include a category referred to as high balance. High balance (HB) represents the highest cummulative outstanding balance on a CC account reached at any point in time - including mid cycle. The only thing I have seen HB used for is a substitute for credit limit on no preset spending limit (NPSL) cards.

 

 

Fico 8: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 9: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 4 .....:. EQ 804 TU 823 EX 830 (3/2017) EX Fico 98: 839 (3/2017)
VS 3.0:...... EQ 832 TU 832 EX 832 (3/2017)
Fico 8 BC:. EQ 887 TU 899 EX 900 (3/2017)
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950 (4/2017)
Message 3 of 6
Community Leader
Super Contributor

Re: $2 over limit on my statement...


Brently986 wrote:

So an interest charge pushed me past my limit by about $2 on my First Bankcard card. I paid it immediately and got myself back where I need to be, but I'm just wondering, will this have any great negative effects on my credit score? Working on building it back up here.


FICO will ding youpretty good for a card reporting over its limit, but paying it back down before the next statement will get your points back. It won't do any lasting harm.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 4 of 6
Moderator

Re: $2 over limit on my statement...


NormanFH wrote:

Brently986 wrote:

So an interest charge pushed me past my limit by about $2 on my First Bankcard card. I paid it immediately and got myself back where I need to be, but I'm just wondering, will this have any great negative effects on my credit score? Working on building it back up here.


FICO will ding youpretty good for a card reporting over its limit, but paying it back down before the next statement will get your points back. It won't do any lasting harm.


It's just the typical maxxed out tradeline penalty, no extra points I don't think?  This actually was common once upon a time with some flexible spending cards.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


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Message 5 of 6
Moderator

Re: $2 over limit on my statement...


Thomas_Thumb wrote:

Side note: Credit reports do include a category referred to as high balance. High balance (HB) represents the highest cummulative outstanding balance on a CC account reached at any point in time - including mid cycle. The only thing I have seen HB used for is a substitute for credit limit on no preset spending limit (NPSL) cards.

 

 


That's lender dependant (or at least was): some will report high balance as highest balance in the period, but some only report it as highest statement balance.

 

Might've changed but I kinda doubt it, wasn't any hard and fast rule and there's a lot of lenders out there.

 

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


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