topic Re: Are there repercussions from going over cl on a secured card? in Credit Cards

Are there repercussions from going over cl on a secured card?

GApeachy — Thu, 07 Mar 2019 14:50:45 GMT

I paid two bills that put me .82 cents over the limit (disco $500sl/cl). Once I realized what I did, before they were posted, I called in and added $1000 to my limit. I asked the csr if that just screwed up my graduation date? He kinda just gave me a sphil about why you don't, how to avoid...yada, yada, yada. So, did I or didn't I ruin it for me? Anyone else do this? If so, what happened?

Re: Are there repercussions from going over cl on a secured card?

xaximus — Thu, 07 Mar 2019 14:54:12 GMT

Personally, I don't think that should be an issue - as long as your making payments on time and using it, you should be fine.

Re: Are there repercussions from going over cl on a secured card?

AverageJoesCredit — Thu, 07 Mar 2019 14:56:57 GMT

You should be ok. Though i do like your solution. Go over $0.82, heres a cool k

Re: Are there repercussions from going over cl on a secured card?

GApeachy — Thu, 07 Mar 2019 15:05:33 GMT

@AverageJoesCredit wrote:
You should be ok. Though i do like your solution. Go over $0.82, heres a cool k

I didn't want to drop a dime on this card but I really don't have any bills that wouldn't put me over. I want to use my cards and establish myself with them....dang, I just did bad math. So, 1k ought to pad my crappy math skills.

The csr did say, just put some gas charge on the card and leave it alone. (Is that really a good idea?) I already pif....sockdrawer perhaps?

Re: Are there repercussions from going over cl on a secured card?

AverageJoesCredit — Thu, 07 Mar 2019 15:37:30 GMT

Actually on a low limit card that is secured, running a small recurring charge is all you really need. Especially with Disco where i feel we are all programmed from rhe begining on what we will be capable of getting. Ie, you will either graduate in 7 months or you wont. You either will get big cli like 3-5k or you will ve permitted $500 at a time. I honestly feel that way with crazy Disco.

In reality if you went over by $0.82, i would have just paid whatever to bring it back under. So long as it didnt report that way and they allowed the charge to go over, you should have been fine

Re: Are there repercussions from going over cl on a secured card?

GApeachy — Thu, 07 Mar 2019 16:08:45 GMT

@AverageJoesCredit wrote:
So long as it didnt report that way and they allowed the charge to go over, you should have been fine

Thanks AJC, I just looked and they reported, off cycle, a balance of $297.00. They reported on me Feb. 24th, normal report date, a zero balance, now I see they re-reported on me March 6th the $297.....at least not the $500.82. Now that makes me wonder. I have never carried a balance and won't this month either....so that seems a smidge spiteful perhaps.

Re: Are there repercussions from going over cl on a secured card?

HeavenOhio — Thu, 07 Mar 2019 16:57:59 GMT

I'd call in and try to discern what triggered the mid-cycle report.

With a Discover secured card, I'd try to use it as much as possible simply because of the first-year rewards.

With other secured cards from "good" banks (e.g. Capital One, Bank of America), I'd submit that how you use the card is up to you… use it a lot or a little.

With predatory cards (Credit One, First Premier, etc.), I'd try to use them as little as possible.

Re: Are there repercussions from going over cl on a secured card?

Shadowfactor — Thu, 07 Mar 2019 17:44:19 GMT

Based on previous discussions that i've seen. I think going over your limit is seen as a negative and will hold back graduation.

It's been a while since i've seen the topic discussed throughly but I believe someone mentioned that as a reason for not graduating on time.

Re: Are there repercussions from going over cl on a secured card?

MakingProgress — Thu, 07 Mar 2019 17:56:44 GMT

@GApeachy wrote:
I paid two bills that put me .82 cents over the limit (disco $500sl/cl). Once I realized what I did, before they were posted, I called in and added $1000 to my limit. I asked the csr if that just screwed up my graduation date? He kinda just gave me a sphil about why you don't, how to avoid...yada, yada, yada. So, did I or didn't I ruin it for me? Anyone else do this? If so, what happened?

I THINK you will be OK. Since you added the $1000 before the transactions posted then you never really went over your limit. I am also guessing that adding the extra cash to a secured card is what caused the midcycle reporting.

Re: Are there repercussions from going over cl on a secured card?

GApeachy — Thu, 07 Mar 2019 17:59:17 GMT

@MakingProgress wrote:

I am also guessing that adding the extra cash to a secured card is what caused the midcycle reporting.

Shew! Good, I felt insulted. thanks for that.

Re: Are there repercussions from going over cl on a secured card?

zerofire — Thu, 07 Mar 2019 19:34:45 GMT

Discover is well aware of the fact that some people will use their whole limit. As a side effect they will consider how much over they will allow you to go. If a charge causes 0.82 over most banks do not blink an eye and just pay the cents. Having the charge decline makes the bank look petty unless it is by a significant amount. Be aware that banks will use a number of processes to manage their cards. Some banks have over the limit fees that are in your contract and will be charged. Some accounts have no preset card limit such as most Signature, Infinite, World, and World Elite cards. With no preset limit the charges are at the banks discretion so they will go transaction by transaction once the limit is met. Outside that banks use the limit as either a hard limit where anything except ~$5 or so over is stopped. Only debit cards and very petty banks use the limit as a super hard stop. Lastly any amount over the limit is due by the due date regardless of how much it is so you will be required to be in your limit by then.