Going over credit limit?

[Anonymous]

Does going over your credit card's limit hurt you in the future, even if you pay it down substantially. I see on my report that it reports the highest balance. Can this affect future CLI? 

[Girlzilla88]

If you correct it right away it's not an issue (or it hasn't been for me at least) I definitley would correct it asap if you did notice it however and not let it report on your statement or keep reporting over your CL.     It's ok for it to show HIGHEST used or something to that affect I have that on several of my cards, BUT I pay it down asap and don't let it report on Statement over CL

[Anonymous]

Thank you! @Girlzilla88 

[Remedios]

Unless you are talking about cards like Visa Infinites, yes it can "hurt". 

Maxed out card is never a good look, and it can lead to AA.

You can use as much of your limit as you want, but there is very little need to allow it to report that way. 

As far as how it hurts..there is possibility of AA, CLD, balance chasing, denials for increases (right, @Girlzilla88 ?) and so on. 

If you are rebuilding, I wouldn't play with this. 

[coldfusion]

Some issuers like Chase (personal experience) will let a cardholder with a strong profile do it up to a certain point but they also expect that at  the entire amount of the overage will be paid off plus the normal mininum payment before the payment due date of the current statement.

e.g. if you run up a balance of $6000 on a card with a $5000 CL and the current payment due date is next Thursday you'd better be prepared to pay off that $1000 plus the 2% (or however the issuer calculates the mininum payment) by next Thursday else you'll get a little naughty-person checkmark next to your name.

[tacpoly]

It depends on your profile and pattern. The times I went over my limit, Chase and Citi just increased my limit. I let the statement cut with the balance then pay the entire thing off before the due date as usual (I always utilize the grace period). As to whether it hurts credit scores, others would have to advise. 

[Anonymous]

If you have a strong profile, maxing out a card or going over the limit often leads to a CLI in the future. I've done it a few times with a 0%. If you do it long term, not sure what will happen with a strong profile, I've never done it past a 0 as I don't pay interest on my cards.

[Remedios]

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@Anonymous wrote:

If you have a strong profile, maxing out a card or going over the limit often leads to a CLI in the future. I've done it a few times with a 0%. If you do it long term, not sure what will happen with a strong profile, I've never done it past a 0 as I don't pay interest on my cards.

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What difference does it make if card is not in 0% promo if one is paying statement balance? 

Besides, quite a few lenders show highest balance present at any point in cycle, not just highest statement balance, Chase, US Bank, Capital One etc to name just a few. 

When times change, some adaptation on the part of consumer is required, also. 

Having cards closed or similar form of potential AA is a really poor experiment to determine if one has "strong profile" or not. 

[UpperNwGuy]

OP, is this post related to your post about a credit line increase at NFCU?  I notice the two posts were written within a few minutes of each other.

[longtimelurker]

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@coldfusion wrote:

Some issuers like Chase (personal experience) will let a cardholder with a strong profile do it up to a certain point but they also expect that at  the entire amount of the overage will be paid off plus the normal mininum payment before the payment due date of the current statement.

e.g. if you run up a balance of $6000 on a card with a $5000 CL and the current payment due date is next Thursday you'd better be prepared to pay off that $1000 plus the 2% (or however the issuer calculates the mininum payment) by next Thursday else you'll get a little naughty-person checkmark next to your name.

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Right, that is the standard agreement for "flexible" cards, the issuer MAY allow you to charge over the limit, but then you have to pay the overage by the next due date (and, as you say, plus the standard payment).

In the past, issuers would charge an over-the-limit fee, but that was stopped by the CARD Act, unless the user opted in (presumably the intention was that if you didn't opt in, charges over the limit would be denied).   However, I have never been asked about opting in on any card.