1. TXChubbyRN's Avatar
    Is it a ding on my credit if I go over my limit? I purchased something the other day and just realized I went over my limit by $100. I've always paid on time and next payment will include my monthly amount plus the $100 I went over. I'm about a year or so into restoring my credit and don't want this to hurt me. Should I worry?
    10-21-08 09:23 AM
  2. JStiner's Avatar
    I would make the payment as soon as you can and pay down the over. I would also pay down and not use more then 50% of the open line on any card if you are trying to fix your credit.

    And never have more then one or two cards

    Its not always about how much debt you have but the amount of debt your able to create in a splurge

    Posted from my CrackBerry at wapforums.crackberry.com
    10-21-08 09:45 AM
  3. Hi-Definition's Avatar
    It depends on how the credit card company and the issuer of the credit card handle such overage on the person's credit limit.

    Some companies/issuers will raise the APR/interest rate; some will simply increase the monthly minimum payment to match the overage amount, some will make the total amount due on the card immediate. All in all; normally this does not become reported on your credit report..it will only risk being reported if you fail to recompense your credit card for the amount that you went over. There's a tier system...the overage is handled between the customer/credit card company first; if that's unsuccessful...that is when it will reflect on your credit report.

    It's best to consult your card's issuer if it's really concerning you. I'm only sharing insight based on my knowledge of this.
    10-21-08 09:51 AM
  4. exelant's Avatar
    Once again Hi Def is correct. The kicker is that you're in the process of restoring your credit. The card company can -- and usually does, bump you up to the maximum interest rate . This is done by computers based in part on your history, so the only way to do something about it is to talk to a Customer Service rep who has a heart. Call them and arrange to pay the overage -- You might be able to pay it before the statement date if you hurry, but don't count on it. Your best bet is the rep, they have a lot of power.

    I'm not getting on you, but I'll tell you what I have learned due to my own mistakes. You should realize that bad marks will remain on your credit report for seven years no matter what. The companies who claim they can restore your credit are liars. While negative marks will stay for seven years, you can start to make it better by making payments on time and not maxing out your accounts. They look at how often and how long your credit lines are at or close to their maximums. So try to not run high balances. It is [email protected] if you do and [email protected] if you don't. If you keep zero balances, that doesn't help either.

    If you pay on time and avoid maxing your cards, your score will start to improve. After as short as a year, you'll be able to do things like buy a car, but it is critical to do what I have advised about payments and balances. The credit reporting companies are almost above the law. The sentences are longer than probation for theft. It would be nice if, say, after four or five years an actual human reviewed your account and bumped your score up based on your history, but that's not the way it works. There are a couple high risk companies who will issue cards with high interest rates to help you get started -- Bank of Marin and Household. They are HIGH interest and are only for restoring credit. Make a mistake with them and you're done for seven years.

    Good luck, and call those people.
    10-21-08 01:03 PM
  5. scywin's Avatar
    Call the 800 number on the card. Explain your situation and ask how they would prefer to handle it, then do wgat they ask.

    The key is to call them first, not wait for it to turn into a problem.

    Posted from my CrackBerry at wapforums.crackberry.com
    10-21-08 01:48 PM
  6. berry me with it's Avatar
    Exelant gave a very good answer. The only thing I'd like to add is that a zero balance isn't such a bad thing to have. It is most important that you have revolving credit, not that you carry a small balance. For example, it looks better if you run a decsent balance, say 30% of credit line, and pay it off every month then retaining a very small balance, say 10%, but only paying the minimum payment. They want to see you can responsibly use the credit you have been given and that you can make the payments.
    10-21-08 01:58 PM
  7. JRussett's Avatar
    another quick tip - it's been proven that having 3-4 credit cards is the magic number when it comes to your credit score...and also you should keep the card that you've had the longest, that'll help the score too...on time payments are the best way to boost your score
    10-21-08 02:15 PM
  8. berry me with it's Avatar
    Don't ever close your longest standing credit card!! That is huge on your report.
    10-21-08 02:19 PM
  9. Tre Lawrence's Avatar
    Some good advice, particularly Hi-Def.


    Just to nitpick a bit: it is difficult to peg an optimal number on the "right" number of credit cards. The FICO high-achievers I know of have tradelines in the double digits. The relative "thickness" of one's file is extremely important when it comes to weathering credit storms. Age and cleanliness are other huge factors.

    Exalant: good stuff.

    For real world advice, visit creditboards.com. The myths dispelled will shock you.
    10-21-08 03:23 PM
  10. TXChubbyRN's Avatar
    Thanks for the advice, everybody. I've been doing a lot of online research and it seems there's a lot of contradictions regarding keeping cards open or closed (with zero balances) and as already posted above having the right number of credit cards with a certain balance. It's all so confusing. Currently I'm paying religiously on my car (got a co-signer for that) and my cell phone and two department store cards which are also with co-signers. I have a bonus from work coming so I plan on paying off both of those cards in one shot so the question remains if I should close the accounts or leave them open with zero balances. So yes, I'm [email protected] if I do and [email protected] if I don't.
    10-21-08 06:24 PM
  11. prince_1308's Avatar
    First to answer the original question, Using 90-!00% of your credit does bring your credit score down therefore you want to make a pymt before the statement date ends so before your account revolves. Second you always want to use max 15-30% of your credit. So lets say a 100$ balance on a 200 credit limit card is bad compared to 100$ on 1000$ card limit. As for your zero balance cards i would leave them open but what you want to do is use 10% of that credit limit and pay it off
    10-22-08 11:21 AM
  12. locciola17's Avatar
    Don't ever close your longest standing credit card!! That is huge on your report.
    this is a great tip for me!! i never really thought about that but i have had my amx since i was 18! (now 27) and i wont be closing that any time soon based on that advice!

    i just consolidated all my debt with a loan from my credit union. i closed 3 accounts and paid off another two. i am keeping that visa and amx open and only keeping those to keep my credit good (currently at 715 - wanna be over 740!!)

    this is a great thread!!
    10-23-08 09:10 PM
  13. reniena's Avatar
    Most credit card companies don't report overlimits, at Least the one I work for doesn't but bureaus can infer it by credit limit and balance. Call your credit card company and ask for a higher limit once you're under your current limit but don't use your card until you're under half your limit at least. Having cards open with no balance can hurt your score too.
    10-25-08 03:11 PM
  14. reniena's Avatar
    By the way, being nice when you call your credit card company will get you farther than if you're a ****. Make them WANT to help you.

    Posted from my CrackBerry at wapforums.crackberry.com
    10-25-08 03:17 PM
  15. ItsBets's Avatar
    Good thread indeed. Just sick that I cut my oldest credit card into about a billion pieces right after I closed the acc't. -- Aww well, felt reallllll good, though!!

    Posted from my CrackBerry at wapforums.crackberry.com
    10-25-08 11:56 PM
  16. metalwraith's Avatar
    How true this is.. more credit limit.. more rope to be hung with..

    11-01-08 04:26 PM
  17. Tre Lawrence's Avatar
    Good thread indeed. Just sick that I cut my oldest credit card into about a billion pieces right after I closed the acc't. -- Aww well, felt reallllll good, though!!

    Posted from my CrackBerry at wapforums.crackberry.com
    Don"t sweat it too much. A closed card still reports positively for 10 years, continually adding to the age component. You do lose potential FICO utilization points, but if you keep your balances low, you should be fine.

    And (to others) available credit DOES NOT equal debt. I know plenty of people with available credit in the 6 or 7 figures. A responsible person uses a credit card like a debit card. You only spend what you REALLY have, and by that I mean cash in the bank. The credit cards are just a smarter conduit.
    11-01-08 05:01 PM
  18. elpresidente408's Avatar
    Opening a credit card initially lowers your credit score, but it helps you in the long term because of your debt-to-credit ratio. If you have a credit card you're never going to use, it's better to keep the account open, and cut up the card so nothing's charged to it.

    Let's say you average $500/mo on your bill. It looks better on your record if you have 6 cards with $20,000 total credit than having 1 card with a $2000 limit because your ratio would be 2.5% instead of 25% of available credit.

    Also, if you do not have any cards opened, or never had one, it's difficult to have a credit history.
    11-02-08 01:41 PM
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