Over the Limit on CC Question

[ABattle]

I currently have 3 cc's that are over their limit, two w/HSBC & one w/First Premier.  While they are over their credit limit I have been making the monthly minimum payments on time.  I just came across a thread where a user advised that having cc's reporting over the limit is considered late & I wanted validation on that b/c I didn't think that's the case & I pray it isn't, since I'm not late just over the limit.  Can anyone clarify this for me?  They will all be paid off in a matter of weeks, as soon as taxes are filed.

[Anonymous]

So does the 'Minimum Amount Due" not include the minimum payment PLUS the amount over limit?

[ABattle]

No it does not.  For instance I'm over the limit on one card by $44 but the minimum payment is $17.  If the over the limit amount was included in the minimum payment, I would do what I had to to make sure it was paid b/c I don't want any lates on my cr.

[JayRizzo]

It's not considered late.  It depends on if they report to the credit bureaus during the time they are over the limit, then it will reflect nagatively.  Also, the golden rule is try NOT to pay the bare minimum.  Even if you have to sacrifice extra money, not saying any of these things you do but things like Lottery tickets, cigarettes, snacks, gifts for people, etc.  Just try to find something extra that you can use to apply toward your payment to exceed the minimum.  Even having 1 card report while you're over is a ding because reports also show your High Balance as well as your Credit Limit.  If your high balance exceeds your credit limit, it only takes the easy math to figure out you went over your limit.  I don't know how that is factored into the credit score algorithm, but it's not good.  You'll have to know when your cards report to the bureaus.

[ABattle]

Okay thank you I just wanted to make sure.  I'm doing the best I can right now, husband was w/o a job for close to a year & we are behind & just trying to catch up.  We're currently paying our rent late but thank God our landlord has been understanding that we are trying to get back on our feet, at this point every dollar counts.  The balances will be zero'd out in a couple of weeks & once that zero balance is reported I will cancel the First Premier & HSBC cards.

[JayRizzo]

Oh yes, it's tough out here!  I'm not sure about those particular companies but give them a call and request a courtesy over-the-limit fee or two reversed to help you reach your goal quicker.

[jeffery581]

Maybe keep the 2 hsbc cards open? Closing them all will lower your aa of a?  Doesn't mean you have to use them (a lot).

[smc733]

Close the First Premier, keep the HSBC, and potentially get a replacement CapOne for FP.

[Anonymous]

Closing accounts does not lower average age.

[FicoScore626]

It's definitely not reported as a late on the credit reports. I've been $2 - $4 over my credit limit with First Premier and HSBC and they appeared on my credit reports but once I paid them down everything was back to normal and none of them were ever reported as a late.

The only thing is that on your credit report your highest reported balance will always be higher than your credit limit until you get a credit line increase. And then it'll look as if you never went over the limit. Unless you go over the limit again after the credit line increase.