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Poor Bastard

Exceeded Credit Limit Question

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I have a low limit card of $5500 that I put a couple charges on that caused me to exceed the credit limit by about $20. Next thing I know I'm seeing a warning on my monitoring that I exceeded my credit limit and about a 30 point drop. Yes, I know that with MyFico the alert and corresponding drop are not necessarily even related. But there were no other charges that would have impacted anything.

 

I paid it off in full as I always do, I use my cards as charge cards. Now it looks like my score went back up 20 points. So it looks like I took about a 10 point hit. Not a huge deal at the end of the day but it still peeves me. I'd have been more careful if I know a freaking $20 over the credit line would trigger their algorithms even though my other cards are at 0 balance.

 

Anyhow, if I call the CC company, any chance of getting the over limit alert off my account? Or could they not do something even if they wanted to?

 

I'm worried this will now impact credit limits if I go for some other high limit cards. How long will this impact me, if at all?

 

Thanks

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3 hours ago, Poor Bastard said:

I have a low limit card of $5500 that I put a couple charges on that caused me to exceed the credit limit by about $20. Next thing I know I'm seeing a warning on my monitoring that I exceeded my credit limit and about a 30 point drop. Yes, I know that with MyFico the alert and corresponding drop are not necessarily even related. But there were no other charges that would have impacted anything.

 

I paid it off in full as I always do, I use my cards as charge cards. Now it looks like my score went back up 20 points. So it looks like I took about a 10 point hit. Not a huge deal at the end of the day but it still peeves me. I'd have been more careful if I know a freaking $20 over the credit line would trigger their algorithms even though my other cards are at 0 balance.

 

Anyhow, if I call the CC company, any chance of getting the over limit alert off my account? Or could they not do something even if they wanted to?

 

I'm worried this will now impact credit limits if I go for some other high limit cards. How long will this impact me, if at all?

 

Thanks

I went over my CL by 10k a few years ago as an experiment. FICO dropped around 70+ points. It was a non-event. Went back up to within 10 points after the next cycle and fully recovered the cycle after that. I doubt it has any negative effect other than it shows you can charge a lot and pay it. Most underwriters will see that as a good thing.

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3 hours ago, cashnocredit said:

I went over my CL by 10k a few years ago as an experiment. FICO dropped around 70+ points. It was a non-event. Went back up to within 10 points after the next cycle and fully recovered the cycle after that. I doubt it has any negative effect other than it shows you can charge a lot and pay it. Most underwriters will see that as a good thing.

Was that on a Flex spending card (i.e. Sig VISA; World MC) or another card with a hard limit?

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For there to have been an alert, it would appear that you had allowed a balance to report.  Easiest way to resolve this issue in the future is to not permit a balance to report.  Being close to (or over) the limit is never good for scoring. 

 

And, if it was simply that a statement cut and the high balance during the cycle was over the limit but the statement balance itself did not report in an overlimit situation, then this is a nothing-burger.  But maxed out cards can EASILY cost you the 30 points discussed...

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On 6/19/2019 at 8:58 PM, Poor Bastard said:

I have a low limit card of $5500 that I put a couple charges on that caused me to exceed the credit limit by about $20. Next thing I know I'm seeing a warning on my monitoring that I exceeded my credit limit and about a 30 point drop. Yes, I know that with MyFico the alert and corresponding drop are not necessarily even related. But there were no other charges that would have impacted anything.

 

I paid it off in full as I always do, I use my cards as charge cards. Now it looks like my score went back up 20 points. So it looks like I took about a 10 point hit. Not a huge deal at the end of the day but it still peeves me. I'd have been more careful if I know a freaking $20 over the credit line would trigger their algorithms even though my other cards are at 0 balance.

 

Anyhow, if I call the CC company, any chance of getting the over limit alert off my account? Or could they not do something even if they wanted to?

 

I'm worried this will now impact credit limits if I go for some other high limit cards. How long will this impact me, if at all?

 

Thanks

Something else changed.  More likely, several other things changed from the time before your first alert until your last score observation.

 

You seemed to get that at the beginning your post 👍🏼 and then lost your orientation just one paragraph later.  👎

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On ‎6‎/‎20‎/‎2019 at 12:00 AM, Rogue said:

Was that on a Flex spending card (i.e. Sig VISA; World MC) or another card with a hard limit?

It was originally a Chase Freedom siggy and NPSL. This required payment of any excess above the CL on the next statement.  However, Chase changed that years ago and there's nothing in the card agreement anymore about over CL balances. In fact the statement that came after I exceeded the CL by 10k only required a minimum payment of around $300. Both Visa and MC World have removed the NSPL wording but apparently Chase, at least, remains ready to approve large charges over the CL.

 

Part of the change is that the CARD Act requires people to "opt in" for over CL fees/interest. So almost all banks that issue decent cards have simply dropped the over CL fees. That's had one major effect.

 

Essentially, all cards are now NPSL. Or rather, what they will let you actually charge is typically higher but unknown. Unlike Amex, there is no way to check your spend ability over the CL. Back when the cards came out people would call the CSR and ask and the CSR had no way to know. In my case the CSR had no idea and just said to try the charge. Well allrighty!

 

So Visa and MC's efforts to go after Amex's charge card customers was stillborn. But they still usually allow charges over the CL with the amount depending on the issuer and the history you have with them. 10% to 20% seems to be regularly allowed. Other than scores (temporarily) there really is nothing bad. Unless, of course, you don't PIF! And even that's not bad from the bank's POV. They love the interest!

 

Getting back to the FICO impact. When a card reports a CL and you approach 90% of the CL expect a significant hit to scores. And in my case I was over my CL by 60% and that produced a 90 point FICO drop into territory not seen since my reports had baddies. So the negative impact increases a lot when you go well over the CL.

 

Outside of possible experiments, I put my large charges on Amex. It doesn't cause much of a wiggle in FICO scores even if the charge is more than all my CLs in regular CCs combined.

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