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Should I make an addt'l deposit on my CC to fix the fact that my high balance is over my cc limit?

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mstexas
New Member

Should I make an addt'l deposit on my CC to fix the fact that my high balance is over my cc limit?

My husband and I have been rebuilding our credit for about a year now.  To help us in this process, we individually got our own Capital One secured cards and added each other as authorized users.

 

Unfortunately, my husband lost his job in the middle of all of our hard work and we utilized our cards to make ends meet. Thankfully, he has a new job, but I'm worried about the fact that a few months back, we only made our minimum payment and I forgot that our annual fee would be hitting on that same statement.  Accordingly, on our credit reports, it now shows that our "high balance" has exceeded our credit limit by a few dollars.  For example, my husband's credit card limit is $400, but his high balance shows $402.  On mine, it is a little more.

 

Currently, our credit card utilization is less than 10%, but of course, this "high balance" does not change.  Does this have an impact on our FICO scores?  Would this be frowned upon by potential lenders in the future?

 

I am thinking I will make an additional deposit to raise both of our credit card limits to the next hundred dollar value.  Does anyone have any guidance on this?  I am currently trying to fund our emergency savings and hesitate on whether I should put that money towards the rainy day fund or whether I should fix this potentially negative issue.  Our lease is up in May and I am very anxious to make sure that our credit reports and scores reflect the best possible situation, especially with regard to our most recent habits.

 

 

Message 1 of 3
2 REPLIES 2
NRB525
Super Contributor

Re: Should I make an addt'l deposit on my CC to fix the fact that my high balance is over my cc limi


@mstexas wrote:

My husband and I have been rebuilding our credit for about a year now.  To help us in this process, we individually got our own Capital One secured cards and added each other as authorized users.

 

Unfortunately, my husband lost his job in the middle of all of our hard work and we utilized our cards to make ends meet. Thankfully, he has a new job, but I'm worried about the fact that a few months back, we only made our minimum payment and I forgot that our annual fee would be hitting on that same statement.  Accordingly, on our credit reports, it now shows that our "high balance" has exceeded our credit limit by a few dollars.  For example, my husband's credit card limit is $400, but his high balance shows $402.  On mine, it is a little more.

 

Currently, our credit card utilization is less than 10%, but of course, this "high balance" does not change.  Does this have an impact on our FICO scores?  Would this be frowned upon by potential lenders in the future?

 

I am thinking I will make an additional deposit to raise both of our credit card limits to the next hundred dollar value.  Does anyone have any guidance on this?  I am currently trying to fund our emergency savings and hesitate on whether I should put that money towards the rainy day fund or whether I should fix this potentially negative issue.  Our lease is up in May and I am very anxious to make sure that our credit reports and scores reflect the best possible situation, especially with regard to our most recent habits.

 

 


You have nothing to worry about.

 

I have many CC which in the past had credit limits in the range of $20k - $30k, and I had open balances at one time which, on each card, pushed near those limits. After the financial crisis of 2008, as my open balances started to come down, the CCC would systematically ratchet down the CL amount. So, now all my legacy cards which have been open prior to 2009 have "highest balances" way over the current credit limit.

 

So if you have a problem with a $2 overage, I don't want to know how bad a situation I'm in Smiley Tongue

 

But seriously, only your current limits and balances are visible, no one looking at your report would be able to line up the exact timing of when the high limit occurred. Even your current CCC will only be concerned at the moment you exceed the CL to get a payment from you to bring it back down. They may make a notation about the occurrence, but if they don't, even they could not go back to reconcile the overage.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 2 of 3
mstexas
New Member

Re: Should I make an addt'l deposit on my CC to fix the fact that my high balance is over my cc limi

 


@NRB525 wrote:

@mstexas wrote:

My husband and I have been rebuilding our credit for about a year now.  To help us in this process, we individually got our own Capital One secured cards and added each other as authorized users.

 

Unfortunately, my husband lost his job in the middle of all of our hard work and we utilized our cards to make ends meet. Thankfully, he has a new job, but I'm worried about the fact that a few months back, we only made our minimum payment and I forgot that our annual fee would be hitting on that same statement.  Accordingly, on our credit reports, it now shows that our "high balance" has exceeded our credit limit by a few dollars.  For example, my husband's credit card limit is $400, but his high balance shows $402.  On mine, it is a little more.

 

Currently, our credit card utilization is less than 10%, but of course, this "high balance" does not change.  Does this have an impact on our FICO scores?  Would this be frowned upon by potential lenders in the future?

 

I am thinking I will make an additional deposit to raise both of our credit card limits to the next hundred dollar value.  Does anyone have any guidance on this?  I am currently trying to fund our emergency savings and hesitate on whether I should put that money towards the rainy day fund or whether I should fix this potentially negative issue.  Our lease is up in May and I am very anxious to make sure that our credit reports and scores reflect the best possible situation, especially with regard to our most recent habits.

 

 


You have nothing to worry about.

 

I have many CC which in the past had credit limits in the range of $20k - $30k, and I had open balances at one time which, on each card, pushed near those limits. After the financial crisis of 2008, as my open balances started to come down, the CCC would systematically ratchet down the CL amount. So, now all my legacy cards which have been open prior to 2009 have "highest balances" way over the current credit limit.

 

So if you have a problem with a $2 overage, I don't want to know how bad a situation I'm in Smiley Tongue

 

But seriously, only your current limits and balances are visible, no one looking at your report would be able to line up the exact timing of when the high limit occurred. Even your current CCC will only be concerned at the moment you exceed the CL to get a payment from you to bring it back down. They may make a notation about the occurrence, but if they don't, even they could not go back to reconcile the overage.


Great information, thank you for your very thorough reply.

Message 3 of 3
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