topic Re: Cards reporting over limit in Rebuilding Your Credit

Cards reporting over limit

emily15 — Fri, 03 Mar 2023 01:31:31 GMT

Hi guys

I hate to even write this but I know how supportive and informative this community can be.

In recent months (maybe the last six months or so) I've had multiple instances of cards reporting over their limit.. while i'm working on getting balances down , I'm wondering what type of negative impact long term this will have?

Is this as impactful as other negatives? (Like late payments) where they negatively affect you for a number of years?

thanks in advance

Re: Cards reporting over limit

Anonymalous — Fri, 03 Mar 2023 02:04:04 GMT

Utilization has no memory. Pay them down, and the scoring penalty goes away.

The real issue is very high utilization is considered a red flag, and in the short term can lead to CLDs and other adverse action, though this varies widely.

Re: Cards reporting over limit

Yasselife — Fri, 03 Mar 2023 02:08:27 GMT

@emily15 If you bring your balance down you can request a CLI, and if it goes to manual review you could point out that the limit was low for you in relation to your income and monthly spend.

Re: Cards reporting over limit

GZG — Fri, 03 Mar 2023 02:21:04 GMT

Some creditors cite balances reported over the credit limit as a reason to deny CLIs maybe? even apps as well

But to a much lesser degree than other negatives

Re: Cards reporting over limit

Horseshoez — Fri, 03 Mar 2023 03:06:57 GMT

@GZG wrote:
Some creditors cite balances reported over the credit limit as a reason to deny CLIs maybe? even apps as well

But to a much lesser degree than other negatives

At least one financial institution, CapOne to be specific, considers going temporarily over your limit and then paying down below said limit before the next statement date as a positive. In my case I handily exceeded my credit limit last summer while paying for airline tickets, hotel rooms, and rental cars for a vacation overseas; I paid the card down the next day and then the gave me a CLI for an increase of nearly 50%.

Re: Cards reporting over limit

Anonymalous — Fri, 03 Mar 2023 03:33:05 GMT

@Horseshoez wrote:
@GZG wrote:
Some creditors cite balances reported over the credit limit as a reason to deny CLIs maybe? even apps as well

But to a much lesser degree than other negatives
At least one financial institution, CapOne to be specific, considers going temporarily over your limit and then paying down below said limit before the next statement date as a positive. In my case I handily exceeded my credit limit last summer while paying for airline tickets, hotel rooms, and rental cars for a vacation overseas; I paid the card down the next day and then the gave me a CLI for an increase of nearly 50%.

Yes, Cap1 is weird that way. They even have a "Confirm Purchasing Power" option under settings, where you can check if a large purchase would go through. That's typically a feature of charge cards with no hard spending limit like the Amex Platinum, not credit cards with predefined limits.