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Amex over limit?

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Super Contributor

Re: Amex over limit?


@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 




Message 11 of 19
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Community Leader
Senior Contributor

Re: Amex over limit?


@Saeren wrote:

@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 


Pretty sure you're correct. I don't think it's an extension of $500 for example but more like an on-the-spot approval to extend your line by the amount of the transaction.



Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $85,600 | Agg. Util under 5%
Message 12 of 19
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Community Leader
Super Contributor

Re: Amex over limit?


@Saeren wrote:

@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 


If you have a $100 limit and report $125, it will show the balance of $125 and a utilization of 125%. It will then be listed in your reports as the highest balance on that card, if it was.

 

I've done it plenty of times when I had good credit. That's the whole point of having a flexible limit.







Message 13 of 19
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Epic Contributor

Re: Amex over limit?


@Saeren wrote:

@ImTheDevil wrote:

Ok I'm glad you corrected it - I haven't ever taken mine over their limits and was relying on what I thought I read awhile back. Good that there's some time allowed I'm sure but yeah, the 100%+ usage would be a bad look on your reports.


Yeah I won't ever be finding out either. I would have a heart attack when my score dropped... that's what, 30-40 points or so? 😱 


I remember your SSL @100%Smiley Surprised .. small bump in the roadSmiley Very Happy

Message 14 of 19
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Super Contributor

Re: Amex over limit?


@M_Smart007 wrote:

@Saeren wrote:

@ImTheDevil wrote:

Ok I'm glad you corrected it - I haven't ever taken mine over their limits and was relying on what I thought I read awhile back. Good that there's some time allowed I'm sure but yeah, the 100%+ usage would be a bad look on your reports.


Yeah I won't ever be finding out either. I would have a heart attack when my score dropped... that's what, 30-40 points or so? 😱 


I remember your SSL @100%Smiley Surprised .. small bump in the roadSmiley Very Happy


What about @1000000%  or @10000000% Smiley Tongue

Message 15 of 19
Highlighted
Super Contributor

Re: Amex over limit?


@M_Smart007 wrote:

@Saeren wrote:

@ImTheDevil wrote:

Ok I'm glad you corrected it - I haven't ever taken mine over their limits and was relying on what I thought I read awhile back. Good that there's some time allowed I'm sure but yeah, the 100%+ usage would be a bad look on your reports.


Yeah I won't ever be finding out either. I would have a heart attack when my score dropped... that's what, 30-40 points or so? 😱 


I remember your SSL @100%Smiley Surprised .. small bump in the roadSmiley Very Happy


SSL is an installment loan so it wasn't much of a ding. Had that been a credit card, I would have lost my mind. 




Message 16 of 19
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Super Contributor

Re: Amex over limit?


@Brian_Earl_Spilner wrote:

@Saeren wrote:

@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 


If you have a $100 limit and report $125, it will show the balance of $125 and a utilization of 125%. It will then be listed in your reports as the highest balance on that card, if it was.

 

I've done it plenty of times when I had good credit. That's the whole point of having a flexible limit.


That's how I figured it worked. And nah, I won't ever do that. I would split it among multiple cards if I had to but with a $15K card, I would be quite worried about my spending if I hit that level. 




Message 17 of 19
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Community Leader
Super Contributor

Re: Amex over limit?


@Saeren wrote:

@Brian_Earl_Spilner wrote:

@Saeren wrote:

@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 


If you have a $100 limit and report $125, it will show the balance of $125 and a utilization of 125%. It will then be listed in your reports as the highest balance on that card, if it was.

 

I've done it plenty of times when I had good credit. That's the whole point of having a flexible limit.


That's how I figured it worked. And nah, I won't ever do that. I would split it among multiple cards if I had to but with a $15K card, I would be quite worried about my spending if I hit that level. 


To be fair, I didn't know much back then and I never considered how it might look to other lenders. All that mattered was my limit wasn't high enough and it would take 4 days to free it up after mailing the check. So, flex limit it was.







Message 18 of 19
Highlighted
Super Contributor

Re: Amex over limit?


@Brian_Earl_Spilner wrote:

@Saeren wrote:

@Brian_Earl_Spilner wrote:

@Saeren wrote:

@KLEXH25 wrote:

Well the card would report the balance well before the due date (assuming you don't make a payment before then). So if you're limit is $1,000 and they extend you to $1,500 and you have a $1,200 balance, how does it report? $1,200/$1,000 ~OR~ $1,200 / $1,500?

 

In reality, I would very likely pay down the balance before it reports, but I'm just curious  how they handle that scenario. 


I would imagine it would report $1200 used on a $1K limit but I've never done this so maybe someone who has will chime in. 


If you have a $100 limit and report $125, it will show the balance of $125 and a utilization of 125%. It will then be listed in your reports as the highest balance on that card, if it was.

 

I've done it plenty of times when I had good credit. That's the whole point of having a flexible limit.


That's how I figured it worked. And nah, I won't ever do that. I would split it among multiple cards if I had to but with a $15K card, I would be quite worried about my spending if I hit that level. 


To be fair, I didn't know much back then and I never considered how it might look to other lenders. All that mattered was my limit wasn't high enough and it would take 4 days to free it up after mailing the check. So, flex limit it was.


Yeah I'm not slamming you for doing it, I'm just saying that I would be very worried for myself if I found myself having to do that with the limits I have now. Watching my mother deal with credit issues, I learned right away about staying in my credit limit so I never went over but I also always had pretty adequate limits on my cards, with my first card being almost $5K out of the gate and my second being 5 digits. I just wish I learned the lesson about not carrying balances 😂 




Message 19 of 19
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