29 point drop for going over limit on credit card?

[smo65d11]

I have a Discover card that I had a problem with last week.  They don't print the next statement closing date on the bill, nor is it shown online, so I always call for the date.  I called in January and was told February 20 was the next date, so I scheduled a payment for the 19th.  I had paid the regular bill before the billing due date, so I was not late with my regular payment thankfully.  Unfortunately the statemet closing date that I was told was wrong, and the closing date was actually February 18, so I was over the limit when the statement closed.  The CL is $700, previous balance was $481, Over limit amount was $781.  My EQ FICO from Scorewatch was 712, it dropped 29 points and is now 683.  Is this normal?  And when next month reports at roughly $400 (as the scheduled payment made last week was $400) will I reset back to 712, or will I be dinged for months?  If so, how many months? 

[Junejer]

Yes, your score will suffer for being over limit. May I make the suggestion that you schedule that payment more than one day in advance, just in case this or some other SNAFU happens to the payment?

FICO scoring has no utilization memory, so things will go back to normal, once you get things back to normal.

[smo65d11]

I am surprised that an OL dings my FICO so much without a late being involved!  I had no idea!  I shudder to think what a late in conjunction with the OL would have done to the score!

Yes I know now that I need to leave more time, I just was moving a day back from the statement date and throwing any extra money I had towards paying down the cards.  Lesson learned!

One other thing is I asked when they report, (my Discover is an HSBC), and they said immediately when an OL happens.  But if HSBC reports at month end, will they report my statement amount of $781, or will they report what my balance is at the time of reporting, which is about $400?

[Junejer]

If this Discover card is like the other HSBC cards, they will report the balance at month's end.

Utilization is 30% of your score, so yes, it will have a huge impact on your score.

Read all about it here

[smo65d11]

so they will report twice in a month?  February 20 due to the OL, and then the regularly scheduled month-end reporting February 28 or so?

[Junejer]

I don't know that. I was just saying that most HSBC accounts will report on the last business day of the month.

[haulingthescoreup]

I got lost there --is this an HSBC Discover card, or a real Discover card?

Sorry, I now see above where you said it was HSBC.

Message Edited by haulingthescoreup on 02-24-2009 11:13 AM

[smo65d11]

it is an HSBC Discover card ...

[JerryG2]

I was in the final stages of refinancing my home in Dec. Two credit cards had gone over limit by $50 to $100. I immediatley paid them down back under the limit but the under writer said my fico had dropped 100 points and I am in limbo on this loan. Will a quick score show they are back under limit and will my fico rebound enough to proceed with this loan in January? Would someone with knowledge please advise me.

[donkort]

If you get a 30-day late, your score will probably go down at least 50 points.