Over Credit Limit *Update

[W101]

 **Update

I spoke with a supervisor from Cap 1 and she basically said since my due date is on the 19th the balance of $196 will report...The charges that occured on the 21st wont bc my cycle closes on the 19th and my statment cuts on the 22nd. *SIGH OF RELIEF!!!

Hi, Guys my mom asked me to rent a car for her, while hers was in the shop. I charged it to my cc, which only has a limit of $800. I agreed to this bc the insurance company(I'm on her policy) was to reimburse me after the rental was returned. As weeks went by I would see a balance of $596 appear and disappear and began to freak out. On last week my balance ($196) appeared back to its original.  On yesterday the car was finally ready (a month later) and the rental  returned!  I woke up today to a credit card balance of 1,104.38 (MINUS my original bal) and  flipped out! How is it even possible to charge over the limit?  I'm going crazy bc my statement reports today and I make it a mission to have all my balances PIF or report at a low balance. I'm purchasing a new car within 3 weeks and I don't even know what to do or think at this point.... I know I will get the money back, but what amount my balance being reported to the bureau at such a high amount? Will this effect my car purchasing? Do I have to wait until a low balance report again?

Thx in Advance!

[ddemari]

op- that sounds like a nightmare! if your balance is reporting today, you are going to see a ding in your score. I would definitely wait until your next cycle reports to apply for any loans. luckily utilization doesnt have memory in scoring, but for the month its going to be a negative against you. 

[Anonymous]

3 months will let the score settle. You might get lucky and yank a cli from activity. I'd be more worried from an over limit fee, sometimes Thats as bad as being late. Internally it is made as an account not in good standing.

[Anonymous]

Going over the limit is entirely possible. Some lenders allow you to do that. However, it will make a good ding to your score and wouldn't look good in loan application. You should either rush to apply today (you usually get a month or so to use your car loan) to Capital One or DCU or whatever your bank of choice is, , or wait until the balance is paid and reported. Sorry to hear, OP.

[Anonymous]

Wow what a nightmare! I can only imagine how you're feeling right now, especially since you planned on purchasing a car soon. I don't really know much about the score impact, etc. but know that everything will be alright with time. The replies before mine offer some great suggestions. Hopefully everything will get sorted out soon. Not to be too personal, but will the insurance company be reimbursing you soon?

[Anonymous]

 Depending on what your total available credit is, you'll definitely see a drop in score because of the increased utilization. If that is your only card and you are reporting over 100%  utilization,  that will be an even bigger hit. Your best bet now is to try and get the payment to post ASAP or get approved for your car loan now, like what others have said above me, there's usually a grace period to use it. Worse comes to worse, you wait an extra month til your report flips back.

[W101]

it is thats all i can think about @ work!

[W101]

yes i will get the money back today, but who knows how long it will take to appear? The most important issue is my statment cuts today!

[longtimelurker]

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@Anonymous wrote:
3 months will let the score settle. You might get lucky and yank a cli from activity. I'd be more worried from an over limit fee, sometimes Thats as bad as being late. Internally it is made as an account not in good standing.

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The CARD act banned over-the-limit fees unless the customer has opted in (and I have never even been asked to do that.)   So while it is just possible that OP did, it's pretty unlikely

[W101]

It's not the only card I have, but it's the biggest limit I own! I'm thinking within a month my score will be find and I'll jus purchase the car around that time.