Over the limit question- Hooters Mastercard

[Anonymous]

My friend T (not the one that just got the Blue Amex, but the one with bad scores like me, lol) just got her HOOTERS CC bill and she is over the limit because her annual fee just posted. She doesn't get it though because her bill is $530 and the fee is $49. It seems as if she wasn't really over the limit.

What should she do? Also, does this Scr** her over in her credit rebuilding and improving her scores and getting CLI's?

[Anonymous]

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Bella1980 wrote:

My friend T (not the one that just got the Blue Amex, but the one with bad scores like me, lol) just got her HOOTERS CC bill and she is over the limit because her annual fee just posted. She doesn't get it though because her bill is $530 and the fee is $49. It seems as if she wasn't really over the limit.

What should she do? Also, does this Scr** her over in her credit rebuilding and improving her scores and getting CLI's?

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What is the CL on the card?  Why does it seem like she wasn't really over the limit?

It will report as over the limit for one month, and that will kill her individual utilization on the card, but as soon as she pays it down, it won't affect her FICO any longer.

It may prevent her from getting a CLI from Hooters for a while, though.

[Anonymous]

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Bella1980 wrote:

My friend T (not the one that just got the Blue Amex, but the one with bad scores like me, lol) just got her HOOTERS CC bill and she is over the limit because her annual fee just posted. She doesn't get it though because her bill is $530 and the fee is $49. It seems as if she wasn't really over the limit.

What should she do? Also, does this Scr** her over in her credit rebuilding and improving her scores and getting CLI's?

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I am confused. What do you mean her bill was $530?

How much was her credit line? $500?

Sounds to me like she already racked up around $452ish in charges, the annual fee was assessed putting her over her limit at $501 and then she was charged a $29 over the limit fee, or something similar.

If I was her, I immediately pay off the balance. It's sure not going to help her chances of CLI in the near future, but it's not to late for letting it get worse unless she lets it sit, or she pays it late. I do wonder though how it will look on her credit reports that her CL is $500 and her highest balance is $530...not sure what that does.

Message Edited by UpUpUp on 08-05-2008 07:38 PM

[Anonymous]

Her credit limit is $500.....her balance was $430 ish before the $49 annual fee hit.

She says the her interest and annual feel should not have taken her over the $500mark but that the $35 over the limit fee took her over....her balance is now $530.

She is going to pay the card off next week and sock-drawer it and try and get a CLI in a few months.

[Anonymous]

Did she make a payment at any point that could have overlapped with the AF posting? Maybe it posted and she went over the limit before payment posted?

[Anonymous]

P.S.

I hope you are giving her friendly advice on this with regards to letting her utilitization go so high. With this being the first statement, I'd be worried about how she may be handling her new card(s).

[Anonymous]

I will ask her when she made the payment.

I have tried to explain utilization to her and told her to spend $50 a month on it and PIF but she went to a wedding in California (lucky devil ducky) and charged all her vacation expenses, hotel, rental car and stuff on the card.

I sat down and went over her CR's with her though and we are both on a plan to pay off everything in one year. She wants to go to grad school next year and will need to qualify for loans and so this is of VITAL importance to her.

I got a little lucky in that my grad school tutiton is covered by a full scholarship and so I didn't have that added stress. But she already had to turn down law school because she couldn't get the loans to go.

So I am actually thinking I am going to have to have a "keeping it real" talk with her because she is still spending like crazy and not paying off any of the debts on her report. (She currently makes $50K a year and has debts as small as $48 on her CR,its really ridiculous). I wouldn't normally be so frank but we've gone through college together and are good friends and I know how badly she wants to go to grad school next year.

[Anonymous]

Ok, quick question regarding utilization.

My friend asked me this and I'mnot quite sure. Is the 10% or less util rate for each card or a total for all cards combined?

[Anonymous]

Your girl put her card to use right away lol.

[Creditaddict]

you know you have a subprime card when bank fees go against your credit line and cause more fees to be charged.