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Over the Credit Limit


new2this
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Hi,

I've seen several post that list going over the credit limit will negatively effect your credit limit. I have several accounts where the high credit is higher than the credit limit because after purchasing large items, I lowered the credit limit.

Was this not a wise move?

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<blockquote>Originally posted by new2this

Hi,

I've seen several post that list going over the credit limit will negatively effect your credit limit. I have several accounts where the high credit is higher than the credit limit because after purchasing large items, I lowered the credit limit.

Was this not a wise move?

</blockquote>

I have secured cards, and what I figured out, is that if I ever go over the limit, what I do, is send in a payment to the security deposit of the card, and get the new limit to where its higher than the high balance. Example......if my limit was 250 and I used it to where it was 267, I sent in a security dep of 50 bucks, to where the new limit is 300, with the highest balance is 267. This way, it appeared to the CRAS that I never went overlimit. :D

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It will negatively affect your credit score by going over the limit. The key is to pay it down as quickly as you can. It would be better to leave your limit high and just not charge it up. I have read that you shouldn't have more than 40-50% of your limit used up - easy for them to say! :p

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If you have a regular credit card account not with secured; then call up customer service and ask them if you can have a credit limit increase. They may review your credit reports though - and it is best to space this out 6 months from the infraction of having gone over the limit.

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No, I did not go over the limit. I lowered my limits.

Here the scenario:

I opened an account and got a $2500 limit and bought $2000 dollars in merchandise. Over time, I paid off the $2000 and not wanting to tempt myself in the future, I lowered the limit to $500. So now my reports reads

Account #####

High Credit $2000

Credit Limit $500

Balance $0

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