@MountainHiker wrote:
@Anonymous wrote:
@MountainHiker wrote:Hi
She likes to run up her card quite often. Think she was about $10 under her spending limit and when her interest fees hit the account reported two or three dollars over her limit.
So, these were just interest fees, not (the now very rare) Over-the-limit fee? Apart from FICO, the other question is whether TD cares. Probably not, but if they do she will be balance-chased as she pays down the card.
She explained the over limit situation as being fee related. And she wasn't hit with a over the limit fee because it wasn't caused by spending.
Well it was caused by spending really and if you are paying interest then you are already behind the power curve! If that interest accrual is then also causing an over the limit situation that is a a sure sign of financial distress. Obviously her FICO score drop is in fact indicating that she is a higher credit risk...because she is!
8/8/25
We dont know the whole file. Just one card. If thats the only card and its running over 89% util each month. Thats a score killer. Util %'s can kill or bring back to life a better score. Tell them to pay it down and use it as a debit card. My fav saying. If you cant pay it. Dont charge it. Emergenicies only. No interest paid.
@Anonymous wrote:
@MountainHiker wrote:Hi
She likes to run up her card quite often. Think she was about $10 under her spending limit and when her interest fees hit the account reported two or three dollars over her limit.
So, these were just interest fees, not (the now very rare) Over-the-limit fee? Apart from FICO, the other question is whether TD cares. Probably not, but if they do she will be balance-chased as she pays down the card.
Well, td once hired a collections company because I forgot to pay. Got the collections notice around 12 or so days after. Tried calling to see if it was a scam and was routed by the system to the collections agency. They didn't close the account, just hired a collections agency. Everything was back to normal after.
@Anonymous wrote:She likes to run up her card quite often. Think she was about $10 under her spending limit and when her interest fees hit the account reported two or three dollars over her limit.
WIth all due respect, she got what she deserved, and if the point drop crossed a threshold, she's well entitled to the increase in interest rate on the car purchase. Of course it may make no difference, but I would think if lenders saw her constantly hitting the CL without a significant paydown they would be leery.
With all due respect, you have no optics on that person's life to make a comment like they got what they deserved. How do you know they deserved it? You have some insight on their life and history of financial mismanagement, or just basing that on a single reported instance on a single card? Stop being a jerk.
Points will come back. The main concern should be what lenders will do with that information. A lender may hand out adverse action, like fees, or penalty apr. But, there are other lenders that monitor reports for things like this. Both Discover and NFCU will take note and deny things such as CLIs due to going over the limit. NFCU actually has a reason code that an account went over the limit in the last 12 months indicating how long it may be affecting their decisions on a different account(s).
There's a saying in the credit community, "Utilization has no memory"! That just means if a person loses points because of a change in their credit card utilization going up, assuming there are no other negative changes in their profile, when they pay the card back down to what it used to be, they will regain those points. So in this scenario, as long as there are no other drastic or negative changes in their credit profile they should regain those 17 points once they repay the increase in their balance and the card reports these changes to the credit bureaus.
