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Over Credit Limit

longtimelurker
Mega Contributor

Re: Over Credit Limit


@HeavenOhio wrote:

Your numbers have me a little confused, i.e. a limit of $2750, a balance of $2950, and $5 still available.

 

But the bottom line is that you're going to be fine. If you're actually over the limit, the worst I see happening is becoming ineligible for CLIs for a while (twelve months I think).


This.   Personally I think calling is overkill, but there is the "Can't hurt" viewpoint (which may not always be true!).   They allowed the charge to go through, if they had concerns they wouldn't have.   Just pay it off "soon".

Message 11 of 19
Janus
Senior Contributor

Re: Over Credit Limit

I agree, It's not like you're thousands over your limit here. Simply pay it down under you CL and you should be fine. Like what was said, if Cap1 was that worried, they wouldn't have approved the charge.

 

FYI: This should be a leanring lesson not to ever use a close to maxed out CC for car rental, in addition to more spending. I'm guessing that you have this card set up for toll charges? Iv'e never had to pay tolls so no idea how this works.






Message 12 of 19
coldfusion
Community Leader
Super Contributor

Re: Over Credit Limit


@Janus wrote:

I agree, It's not like you're thousands over your limit here. Simply pay it down under you CL and you should be fine. Like what was said, if Cap1 was that worried, they wouldn't have approved the charge.

 

FYI: This should be a leanring lesson not to ever use a close to maxed out CC for car rental, in addition to more spending. I'm guessing that you have this card set up for toll charges? Iv'e never had to pay tolls so no idea how this works.


The explanation is quite simple. 

 

If you have a good track record some issuers as a courtesy will allow a one-off where you can temporarily exceed your official credit limit by a small amount,  with the expectation on their part that you will have paid down all of the overage plus at least your mininum payment before the payment-due date of your most recent statement.    I''ve done it with Chase on a card with a 5-figure CL and they didn't blink an eyelash.

 

This is a well however that you do not want to consider trying to draw from on a regular basis.  It's not a technique one wants to pursue in order to try to encourage an auto-CLI.  



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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 13 of 19
CreditInspired
Community Leader
Super Contributor

Re: Over Credit Limit


@CivalV wrote:
That is what I am confused about as well. Having $5 available credit but my CL is $2750 while my balance is $2950. Wouldn’t my credit reflect $0 if I went over limit!

Maybe the tolls are still pending. 


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Message 14 of 19
UncleB
Moderator

Re: Over Credit Limit

Just a bit of speculation, but it looks like the toll charge is associated with the rental itself, and when the rental company attemped to send through a new auth it was denied.

 

Since the terms of the rental contract allow for things such as tolls, etc. to be billed to the card on record they might have sent the charge through anyway, and in spite of the additional auth not being acquired Capital One chose to allow it.  That would explain the initial denial notification then the subsequent charge posting.

 

I could be mistaken about the specifics of the situation, though.

 

In any case, there's a setting on the Capital One website that you can change depending on your over-the-limit preference:

 

capitalOneOverLImit.png

 

At one time they would only let you change it one-way (to have over-limit purchases denied, and never changed back) but it looks like they had a policy shift since now it states you can change your preference at "any time".

Message 15 of 19
cal1
Member

Re: Over Credit Limit

I would pay as soon as possible, especially before the statement cut date. My credit card dropped 100 points after I was over my credit limit on a different card. I paid the over limit a few days after the statement cut date and paid the full balance by the next due date.

Message 16 of 19
longtimelurker
Mega Contributor

Re: Over Credit Limit


@UncleB wrote:

Just a bit of speculation, but it looks like the toll charge is associated with the rental itself, and when the rental company attemped to send through a new auth it was denied.

 

Since the terms of the rental contract allow for things such as tolls, etc. to be billed to the card on record they might have sent the charge through anyway, and in spite of the additional auth not being acquired Capital One chose to allow it.  That would explain the initial denial notification then the subsequent charge posting.

 

I could be mistaken about the specifics of the situation, though.

 

In any case, there's a setting on the Capital One website that you can change depending on your over-the-limit preference:

 

capitalOneOverLImit.png

 

At one time they would only let you change it one-way (to have over-limit purchases denied, and never changed back) but it looks like they had a policy shift since now it states you can change your preference at "any time".


It's good that they don't charge an OTL fee, as I believe the CARD Act allows it IF the user opts in, and this looks like opting in!

Message 17 of 19
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: Over Credit Limit

It's not a big deal for cap1. It's a big deal for others looking at your report since it will show your highest balance ever. Not many people ask for a limit decrease, so it will probably be assumed that you went over your limit. That's if there isn't some flag that we don't know about for over the limit. This happened to me a while back. I accidentally used the wrong card because the qs and qs1 look so similar. When the interest hit it took me over the limit. Cap1 didn't care, but I was denied a CLI from another bank for going over the limit.







Message 18 of 19
Ericguest
Regular Contributor

Re: Over Credit Limit

$220 toll charge hasn’t posted yet therefore you have $5 available.
If you have $2 in available credit and say you have card on file and there is a charge for $50 still it will go through.
Going over the limit too often will result in your credit card being restricted. Keep paying it and forget about using it if you want it to grow.
Message 19 of 19
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