Will spending more then my credit limit hurt my credit score?

[cobo6]

I just wanted to know if I spent more then my credit limit on one of my credit cards, but pay the bill in full and make multiple payments in a month, does that does that hurt my credit score? In total I have three credit cards, one with Citi $2000 limit, Orchard Bank $300, and a sears $250. So I have a total credit utilization of $2550.  I mostly used my orchard bank card and I usually spent over my $300 credit limit but I make multiple payments in a month and pay in full. So my question is since I am only using one credit card to charge a balance more then my credit limit and making multiple payment and paying in full will that hurt my score?

[MissExcellentCredit]

I'm sure you can work your way around the system, but it's NEVER  a good idea to practice going over your limit. Never. Even if you make  multiple payments, it shows that you need more credit than you've actually been granted.  I wouldn't do it if I were you. Times can be hard, I know, but try not to do it. Not a good idea. Ever.

[haulingthescoreup]

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@cobo6 wrote:

I just wanted to know if I spent more then my credit limit on one of my credit cards, but pay the bill in full and make multiple payments in a month, does that does that hurt my credit score? In total I have three credit cards, one with Citi $2000 limit, Orchard Bank $300, and a sears $250. So I have a total credit utilization of $2550.  I mostly used my orchard bank card and I usually spent over my $300 credit limit but I make multiple payments in a month and pay in full. So my question is since I am only using one credit card to charge a balance more then my credit limit and making multiple payment and paying in full will that hurt my score?

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Not really sure what you're saying.

Are you saying that you are running your balance over the limit? If you pay it off before it reports, it won't hurt your FiCO scores, but your CCC might smack you around.

If you're saying that you charge $280 on a $300 card, and then pay it off, then $250, then pay it off, then $290, then pay it off, all within one billing cycle: the only thing that affects your scores is what is reported to the bureaus each month, which is generally the balance on your statement. Many people with low limit cards charge a total that is higher than the CL during the month, but they never go over the CL. They just make multiple payments instead.

You can do pretty much anything with your card as long as you pay it down or off before it reports, and it will only be that low figure that reports.

[MissExcellentCredit]

Cutting it too close is just not my thing.  Why not think about what you're buying first and ask yourself, "Do I really need this?"  Most times, if I give myself a waiting period, I'll find that I didn't really need it in the first place, or already have something else I could use lying around the house to use.  If you cut it close with a low limit, what will you do with a high limit? It takes time, practice and discipline to keep that utl ratio low.  You can do this!!!

[Varakai]

Why not use your Citi card with its $2000 limit instead and PIF before your statement cuts? Pushing that much money through your Orchard card will net you nothing. That card usually does not grow with its owner. The other thing is that if you are putting a $310 charge on a $300 card, it will show on your credit report as in current balance and highest balance reported. And while that may not hurt your FICO score, it does not look good when an underwriter manually reviews your future application for credit such as Dicover or AMEX.

[Booner72]

I went over my 400 limit First Premier craphole card by 41 bucks, and there it sits forever on my credit.  Limit: 400  High Balance:  441.

i dont think it dinged my score but it looks bad.

But if you are saying you charge, then pay, charge, then pay, without ever going over the 300 then it doesn't matter.  If your ran 3000 thru that card in a month, but made enough pmts that you didn't go over, then it doesn't matter at all.

[cobo6]

Thank you all for answering my question. Based on what you guys said, it is not really wised to make multiple charges and multiple payments on a low limit credit card but never going over the credit limit. I did notice on my credit report that even though i i pay my bill in full every month, it reported a balance of $74 dollars, but a actually payment of $504. I just wanted to know will my credit score be lower because of this?

[GregB]

Your FICO score will be calculated based upon the amount reported as the balance, which is $74. Some creditors report the amount of the payment. If somebody does a manual review, it will only look like you deserve a higher limit.

I see zero downside to what you are doing.

[MissExcellentCredit]

Why spend over your limit?  It's like saying, yeah, go ahead and ding me for going over my limit and charge me all the extra fees. That's why banks want you to sign up for overdraft protection - so they can make money off of folk who don't have it to pay for in the first place.  Say your account is at $2.35, but you go through Starbucks and order a Latte for $3.95.  In your mind you're thinking that you have $50 in your account because the pending transactions havent posted yet. WRONG!  Even though they haven't posted, your account is still debited that amount. So you hand your card over for the coffee and walk away, only to notice tne next morning that you got charged a $35 overdraft fee!  Why would anyone pay $36 for a cup of coffee? Been there, done that.  Trust me, It's NEVER worth it to cut it too close on your debit, credit or any other type of cards. Use credit responsibly and it will reward you. Wrongly take advantage of it, and it will kick you in the butt.

[GregB]

Read his post again. He never said he went over his limit.