I was over my limit on my credit crd 2 mnths in a row and they raised my APR. Will this hurt my credit score? We are wanting to buy a house next year and I am afraid it will hurt us with getting a mortgage. I plan to have my CC paid halfway off by the time we apply for a mortgage. Will this hurt us and our credit score?
2007-08-16 02:42:01 · 4 answers · asked by GirlNextDoor 2 in Business & Finance ➔ Credit
As long as you were simply over your limit and not late the only thing that would be effected is your debt to credit ratio.
This makes up 30% of your credit score so yes it will effect your score, but as long as you get your balance below 30% by the time you apply for your home loan, you should be fine.
As far as your APR is concerned, this has no effect on your credit score.
2007-08-16 02:55:10 · answer #1 · answered by ? 7 · 2⤊ 0⤋
You should really take a close look at your spending habits. If you not only are carrying a balance on your credit card but when over the limit TWO months in a row, you are living beyond your means. Not a good way to go into buying a home which has tons of unexpected expenses.
Make a budget. Start by writing down everything you spend for a week or two. Then look for ways to cut back and spend wisely.
At least till you get that credit card paid in full (which would be much better than just half), put yourself on a strict budget. Eliminate all the extras -- eating out, cell phone, new clothes, etc. Put every penny you can squeeze out of that budget on that credit card. You should have it all paid off within the next year.
2007-08-16 03:36:00 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
Of course it will. How did you like those $39 over limit fees? And now your APR that is probably close to 30% (maybe more) You are now stuck with that rate for at LEAST 6 months and even then you will likely have to call and ask for them to lower it.
2007-08-16 02:57:15 · answer #3 · answered by Craig T 6 · 0⤊ 0⤋
Yes, it will.... definitely for the short term, and a little bit as time goes on, but by next year as long as you have been paying down the balance and get it below 40% of your credit line you should be fine.
2007-08-16 02:47:41 · answer #4 · answered by Mike 6 · 0⤊ 0⤋