Credit over limit Discover

[jhhedder]

I have a 1.2k credit limit on my card. A day before my statement posted, I had a bill post that put me $70 over the credit limit. I paid it off after the statement balance, but did not realize that it had posted, which is strange considering my other charges on that day were still pending and did not post in that statement balance. What can I do now? I'm thinking it will hurt my credit score. Perhaps I can ask Discover to do something?

[Revelate]

---

@jhhedder wrote:

I have a 1.2k credit limit on my card. A day before my statement posted, I had a bill post that put me $70 over the credit limit. I paid it off after the statement balance, but did not realize that it had posted, which is strange considering my other charges on that day were still pending and did not post in that statement balance. What can I do now? I'm thinking it will hurt my credit score. Perhaps I can ask Discover to do something?

---

Welcome to the forums!

Won't matter in the slightest that it reported above it's limit to FICO, nor anecdotally to future underwriters.  Wouldn't worry about it at all.

What is a scoring problem is the fact the tradeline is maxxed out: I know I lost 14 points with below average score on one that's nearly guarunteed to be on a mortgage tri-merge, but it's an instant in time problem: once it's reported paid, it won't matter to FICO.  Short-term easy fix, not a long-term issue.

[jhhedder]

Interesting. The reason why it brought a concern to me is because I got an alert from ProtectmyID that there was a potential negative, citing Reason: Over the credit limit.

So if I pay it off right away, there should be no drop in credit score is that correct? Also how long until this falls off from my credit report? And would it be too risky to apply for a credit card within the next 2 months given this happening, how would it impact my chances? I haven't applied since September of last year.

[Revelate]

---

@jhhedder wrote:

Interesting. The reason why it brought a concern to me is because I got an alert from ProtectmyID that there was a potential negative, citing Reason: Over the credit limit.

So if I pay it off right away, there should be no drop in credit score is that correct? Also how long until this falls off from my credit report? And would it be too risky to apply for a credit card within the next 2 months given this happening, how would it impact my chances? I haven't applied since September of last year.

---

Being overlimit doesn't affect FICO, other than the penalty for having a maxxed out tradeline on one of the revolving utilization calcultions which is an instant in time calculation.  Protect My ID is fine for monitoring, but for credit advice should be ignored.

High balance typically doesn't go away until the tradeline has been closed for 10 years; I've heard it can reset but I haven't seen it in my experience 2 years after a high balance was set, may depend on lender reporting.  Anyway, it truly is not a big deal: pay your account, go on with life: I have direct personal experience with a successful app spree 2 months after my BOFA card graduated at $2500 high balance $35XX.  Zero problem with Amex, Chase, USAA, GE Capital.

[lg8302ch]

Depending on your profile it will not even make a difference in Fico scoring for that maxed out card. I had this with my Discover at 90%  when my CL was 2,5K and the score did not change when I paid down to zero because overall util remained the same.  What you can do is once your payment has posted to your Discover account ask Discover for a mid cycle reporting and then the CRs will reflect the balance of that day instead of the statement balance that is over the limit. The high balance will remain but this does not affect in any way. I had my high balance on my BofA cards sitting at 7,5K when my CL was 5K and this did not affect me in any way.  I also had no problem to pass manual reviews with other lenders ..nobody questioned these high balances compared to CL.  So if you cannot wait until the next reporting cycle I would suggest to ask for a mid cycle reporting and problem will be gone immediately instead of next reporting cycle.

[CreditPlay]

It happened to me once on my BofA card. The score came back up after the next reporting cycle. So nothing to worry about. Discover might give you auto cli as well.