topic Re: Credit Card went $1 over limit for 1 day - will that affect my credit report? in General Credit Topics

Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Fri, 29 Dec 2017 20:21:44 GMT

I cancelled a recurring subscription 2 months ago but the payment just came out and my credit card went $1 over the limit and I paid it off immediately. Will that report to my credit report? What type of score impact will I have?

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Adkins — Fri, 29 Dec 2017 21:26:57 GMT

This really depends on the creditor. I recommend you call and ask them if they'll report it or just report your regular statement balance at the end of your billing cycle.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 01:54:40 GMT

What is the date of your last credit report? If this happened mid-cycle you are likely OK (though see AA below).

One thing to consider is that, if a single fairly small charge could cause you to go over your credit limit, then that card is basically maxxed out which is very bad for your card and your score -- even if the mistaken charge hadn't gone through. The ultra high utilization is hurting your score, the interest is hurting your wallet, and the issuer might be contemplating taking Adverse Action against you because you represent high risk. Google Adverse Action and also Balance Chasing to learn more.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 02:57:25 GMT

Thanks for the response - I pay my cards off each month before the statement date. This month I made a large purchase so that I could get the rewards and was already intending to pay it off immediately but as fate would have it, this company incorrectly charged me a monthly fee which should have not come out

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

EAJuggalo — Sat, 30 Dec 2017 03:28:48 GMT

What lender? More than likely you'll be fine.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 03:48:13 GMT

NFCU

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 04:43:55 GMT

@Anonymous wrote:
This month I made a large purchase so that I could get the rewards...

Can you clarify what you mean by this statement? On the surface it sounds like you're spending in order to achieve rewards, which definitely isn't a sound financial decision.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 04:58:37 GMT

I had a major purchase to make - appx $4500. I could have paid it in cash but opted to pay with a Rewards Card and then pay it off completely as soon as the charges posted. No balance carried - no interest.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

JVille — Sat, 30 Dec 2017 05:34:20 GMT

I get it! I recently bought living room furniture which I had cash for but put it on my Chase Sapphire Reserve to get points, I paid the card off the following week prior the stmt closing. Yes people do this, in my case it allows Business Class flights to Europe for free. I call that a wise investment. I also pay my cards off in full each month.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sat, 30 Dec 2017 05:48:14 GMT

@Anonymous wrote:
I had a major purchase to make - appx $4500. I could have paid it in cash but opted to pay with a Rewards Card and then pay it off completely as soon as the charges posted. No balance carried - no interest.

I would have let the charge post to statement then pay it on due day, keep the $4500 in high yield savings for up to 55 days (depending on when the charge is made) and take full advantage of the grace period (still not carrying balance and paying interest), the only thing is your score might take a temporary hit but will rebound next cycle when you PIF on due day. Unless you know you're about to apply for new credit, micro managing your UTI is completely pointless and wasteful, just setup autopay to PIF on due day for all your cards and spend your time and money on more important stuff.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Glen_M — Sat, 30 Dec 2017 23:49:31 GMT

... Unless you know you're about to apply for new credit, micro managing your UTI is completely pointless and wasteful, just setup autopay to PIF on due day for all your cards and spend your time and money on more important stuff.

Your scores can be pulled for lots of other things, and you won't always know what is coming. Some of the occasions you most need a good score is when you're not planning for it.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Anonymous — Sun, 31 Dec 2017 00:28:23 GMT

@Glen_M wrote:
... Unless you know you're about to apply for new credit, micro managing your UTI is completely pointless and wasteful, just setup autopay to PIF on due day for all your cards and spend your time and money on more important stuff.
Your scores can be pulled for lots of other things, and you won't always know what is coming. Some of the occasions you most need a good score is when you're not planning for it.

I think there's a big difference between managing and "micro" managing. Managing utilization is a good thing IMO. As Glen stated above, you can be pulled at any time by anyone. It's always the best look to have your utilization as low as possible. To me, this is simply managing utilization. Micro managing to me involves always maximizing FICO scores through things like AZEO and constantly watching the calendar to ensure you are paying at the right dates and such. With a bunch of accounts, this can be tedious and time consuming for many. So I agree that micro managing utilization really isn't necessary unless a major loan app is approaching, but managing utilization overall is a healthy thing to do.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

EAJuggalo — Sun, 31 Dec 2017 01:59:39 GMT

I would be shocked if NFCU reported $1 over the limit off cycle.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Revelate — Sun, 31 Dec 2017 13:49:12 GMT

This isn't an issue even if NFCU does report it off cycle.

Don't sweat it, and don't borrow trouble. You paid, your credit life's fine. Certainly don't call the lender... don't poke the bear, don't poke the bear, don't poke the bear. They are not our friends.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

RobertEG — Sun, 31 Dec 2017 23:35:00 GMT

Creditors keep record of every daily balance, as it is necessary to calculate the interest (if any), which is normally then based on the average daily balance if the account carries a balance.

Creditors thus have and retain much more detailed information on daily balances than are reported to the CRAs.

They also have their own internal algorithms for evaluating their internal determinations, such as potential credit limit decreases based on near or over the limit scenarios.

The CRAs only get the balance on day of reporting, so it wont affect your score if not reported.

However, over the limit implications can be viewed daily by creditor internal records, and that would be my primary concern.

I would presume that most creditor algorithms for review of potential credit limit decreases would require a period of over the limit of much more than one day, and it is unlikely to trigger a review, but that is entirely and internal creditor determination.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Thomas_Thumb — Tue, 02 Jan 2018 01:31:56 GMT

@Anonymous wrote:
I cancelled a recurring subscription 2 months ago but the payment just came out and my credit card went $1 over the limit and I paid it off immediately. Will that report to my credit report? What type of score impact will I have?

An isolated over limit event is nothing to worry about especially if it occurred mid cycle and the balance was paid down before statement cut. With some credit cards the highest balance may get reported in the High Balance field for that CC. However, that won't impact score and should not be viewed negatively in a manual review unless it coincides with a late payment being reported.

Re: Credit Card went $1 over limit for 1 day - will that affect my credit report?

Kree — Tue, 02 Jan 2018 18:48:11 GMT

@Anonymous wrote:
I cancelled a recurring subscription 2 months ago but the payment just came out and my credit card went $1 over the limit and I paid it off immediately. Will that report to my credit report? What type of score impact will I have?

I once maxed out my Discover, set it up for Autopay and cut the card. But there was an error and the autopay came out a day later than a late fee.

So where I thought I had been paying Minimum+40 bucks each month, turned into being 5 cents short each month.

A few years later I'm responsible enough to use credit again, and go checking into my discover, assuming it had been paid down a fair chunk. Low and behold, over 100% UTI for over a year straight. Talk with them. They waive the late fees. I pay it down a bit more. Next month auto CLI to triple the limit.

Long story short, some companies really don't care about going over the limit.