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Any ding for being over the limit?

masscredit
Valued Contributor

Any ding for being over the limit?

I noticed a couple of my cards are reporting balances as being over the limit. Aside from the high utilization penalty, is there a ding for being over?

Message 1 of 12
11 REPLIES 11
Jnbmom
Community Leader
Senior Contributor

Re: Any ding for being over the limit?


@masscredit wrote:

I noticed a couple of my cards are reporting balances as being over the limit. Aside from the high utilization penalty, is there a ding for being over?


@masscredit 

 

As you noted the utilization will kill your scores, but also being over the limit sends RED flags to your lender and could result in AA , balance chasing and closures espicially during these times. I'd be worried more about my lender than scores.

EXP 758 TU 783 EQ 729
Message 2 of 12
Bankrupt2019
Established Contributor

Re: Any ding for being over the limit?


@Jnbmom wrote:

@masscredit wrote:

I noticed a couple of my cards are reporting balances as being over the limit. Aside from the high utilization penalty, is there a ding for being over?


@masscredit 

 

As you noted the utilization will kill your scores, but also being over the limit sends RED flags to your lender and could result in AA , balance chasing and closures espicially during these times. I'd be worried more about my lender than scores.


yeah, what @Jnbmom said +1









Message 3 of 12
BrutalBodyShots
Super Contributor

Re: Any ding for being over the limit?

No there isn't an additional penalty associated with being over your limit above the already maxed out highest individual card utilization level you would have already arrived at prior.  It is worth noting though that those additional dollars added to your overall limits numerator when going against a constant denominator means that your aggregate utilization is continuing to rise.  This of course is a major scoring factor if you happen to cross a threshold as a result.

Message 4 of 12
Birdman7
Super Contributor

Re: Any ding for being over the limit?

I’m not so sure. I think there may be a 100% individual revolving threshold. There has been evidence of such for loans, did you see a score change when it reported over 100% OP?

Has this been previously tested?
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 5 of 12
BrutalBodyShots
Super Contributor

Re: Any ding for being over the limit?

OP would have to rule out other variables such as an aggregate utilization gain and possible dollars threshold if he were going to try and nail down a 100% utilization threshold on an individual account.

Message 6 of 12
ImTheDevil
Community Leader
Senior Contributor

Re: Any ding for being over the limit?

OP, who are the lenders?

 

You need to pay those down below the limit (preferably below 89% at least to get out of maxed territory) like NOW, before those lenders take action. I ask who they are because some, like Discover, will report off-cycle upon request. That would be really good so that when other lenders SP your reports, they don't see you as over the limit and take action themselves.

 

Maybe it's just a wording choice, but when you say "I noticed some of them are reporting over the limit..." it makes it sound like it was a surprise. If this was just a wording choice, so be it. If it was something you were unaware of, for your own good, you need to become much more proactive in managing your accounts or bad things are coming. Being on top of your balances LONG before they get into maxed out territory and beyond is critical to building a good history and profile, and to maintaining your limits and the ability to grow them. As it is, unless exceeding the limits was based on a flexible-spend card like Amex and some others are known to approve on occasion, this may have shot a hole in any growth or new accounts with those lenders for the next couple years.


I'm not trying to preach or admonish, but part of what we try and do here besides help people fix derogs and grow limits, is to help instill the behaviors that lead to long-term credit success. If you're aware of all this already, so much the better but I'd rather come across heavy-handed when not needed, than fail to give information that someone genuinely may not be aware of. I hope it all works out ok in the end.

 

/soapbox



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | PenFed PCR | Navy Platinum | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $112,400 | Agg. Util under 10%
Message 7 of 12
GApeachy
Super Contributor

Re: Any ding for being over the limit?


@Birdman7 wrote:
I’m not so sure. I think there may be a 100% individual revolving threshold. There has been evidence of such for loans, did you see a score change when it reported over 100% OP?

Has this been previously tested?

@Birdman7  like this?

 

May 2020-   731 fico, 65% on card, 4% agg. utl.

June 2020-  698 fico, 87% on card, 5% agg. utl.

July 2020-   698 fico, 100% on card (or $4 over credit limit), 5% agg. utl.

Aug 2020-   752 fico, 0% on card, 2% agg. utl. 

Sept 2020- 764 fico, 0% on card, 1% agg. utl.

All revolving, No Loans...be glad to look up any other info. that might be of interest.

 

(not my report)

 

"My Take Home Pay Don't Take Me Home"
Message 8 of 12
Birdman7
Super Contributor

Re: Any ding for being over the limit?


@GApeachy wrote:

@Birdman7 wrote:
I’m not so sure. I think there may be a 100% individual revolving threshold. There has been evidence of such for loans, did you see a score change when it reported over 100% OP?

Has this been previously tested?

@Birdman7  like this?

 

May 2020-   731 fico, 65% on card, 4% agg. utl.

June 2020-  698 fico, 87% on card, 5% agg. utl.

July 2020-   698 fico, 100% on card (or $4 over credit limit), 5% agg. utl.

Aug 2020-   752 fico, 0% on card, 2% agg. utl. 

Sept 2020- 764 fico, 0% on card, 1% agg. utl.

All revolving, No Loans...be glad to look up any other info. that might be of interest.

 

(not my report)

 


@GApeachy I need aggregate to stay within an interval and I need to see before and after crossing from 90%-99% interval to the 100+% interval individually. Number of accounts with a balance would need to be constant and we still can't rule out balance thresholds.

 

yes if you're willing to search and look, anything you find may be of assistance! Thanks!

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 12
FinStar
Moderator

Re: Any ding for being over the limit?


@ImTheDevil wrote:

OP, who are the lenders?

 

You need to pay those down below the limit (preferably below 89% at least to get out of maxed territory) like NOW, before those lenders take action. I ask who they are because some, like Discover, will report off-cycle upon request. That would be really good so that when other lenders SP your reports, they don't see you as over the limit and take action themselves.

 

Maybe it's just a wording choice, but when you say "I noticed some of them are reporting over the limit..." it makes it sound like it was a surprise. If this was just a wording choice, so be it. If it was something you were unaware of, for your own good, you need to become much more proactive in managing your accounts or bad things are coming. Being on top of your balances LONG before they get into maxed out territory and beyond is critical to building a good history and profile, and to maintaining your limits and the ability to grow them. As it is, unless exceeding the limits was based on a flexible-spend card like Amex and some others are known to approve on occasion, this may have shot a hole in any growth or new accounts with those lenders for the next couple years.


I'm not trying to preach or admonish, but part of what we try and do here besides help people fix derogs and grow limits, is to help instill the behaviors that lead to long-term credit success. If you're aware of all this already, so much the better but I'd rather come across heavy-handed when not needed, than fail to give information that someone genuinely may not be aware of. I hope it all works out ok in the end.

 

/soapbox


Perhaps the OP can provide more clarity on its importance given what's already been mentioned and discussed on their own separate thread in the BK subforum.  I'm not sure that maxed utilization would matter as much at this juncture if ultimately some of the other accounts may start reporting negatively depending on the OP's plan.

 

https://ficoforums.myfico.com/t5/Bankruptcy/My-bankruptcy-journey-begins/m-p/6256497#M76967

Message 10 of 12
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