Just curious: does going over your limit show up on your credit report? If so, is it counted as a derogatory item?
2007-03-19 23:58:45 · 5 answers · asked by sirmoosta 2 in Business & Finance ➔ Credit
Going overlimit can hurt you 2 ways.
1. It affects your utilization ratio which makes up 30% of your score. and...
2. It can hurt your chances of getting a line increase with some credit card companies, not to mention that they could jack up your interest rate to boot.
It's not considered a derogatory item like a charge off or delinquency, but it does skew the data of what your credit report really is. Let's say that you're paying on time, but you're overlimit. While it's great that you're making the payments, you're still at or over your utilitzation ratio. The best bet is to keep it at 30% or below (preferably below).
2007-03-20 04:35:29 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It does show up, and if affects your credit score, but it isn't considered derragatory like being over 30 days late. It's best to stay under 40 or 50% of your available credit. If you do go over your limit you will probablky be charged a $35.00 over limit fee. If you do not pay it off immediately you will get bugged by the company and they may raise your interest rate to default rate. If you go over more than once in a great while, the company might raise your rate. It also may affect your ability to obtain additional credit.
2007-03-20 01:59:52 · answer #2 · answered by jimmyjohn 4 · 0⤊ 0⤋
You could try to avoid going over your limit by paying cash for part of the transaction and charging the rest or by splitting the purchase over two cards. Have you requested that the credit card company raise your credit limit? I charged a computer to my credit card and nearly maxed it out and it shows that amount as my "high" even though I've had an increase in credit limit and have ALWAYS paid off my card in-full and on time.
2007-03-20 01:09:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If they report it, it will report as a high balance, that would show you were overlimit. It will definately hurt your scores through high utilization. As for your credit, if you apply for credit and an underwriter looks over your reports, it's there to see.
As for that creditor and others, being overlimit "may" get you rate jacked and/or credit limit decreased by any of the creditors.
Pay it down as fast as possible. That may work in your favor if you plan to ask for goodwill in waiving the overlimit fees, lowering the interest back down if they do rate jack you.
2007-03-20 00:14:32 · answer #4 · answered by echo 7 · 2⤊ 0⤋
no it does not show
the credit reports shows that you have made your payments.
it does not show payment amounts IE: minimum of maximum.
The report simply confirms that you are capable of re-paying the loaned amount.
2007-03-20 00:10:57 · answer #5 · answered by Anonymous · 0⤊ 0⤋