This topic contains 5 replies, has 4 voices, and was last updated by Anonymous 7 years, 9 months ago.
- May 6, 2011 at 9:18 am #207578
I recently went over my credit limit by $10 and noticed that the credit card account (Cap One) was reported as delinquent on my equifax credit report? How can this happen and what are the consequences to my credit rating/score? Thanks for your response.
- May 7, 2011 at 1:00 pm #265847
before you worry about your credit score you need to worry about your wallet.
Since you went over your limit, you MIGHT be in violation of the terms of your agreement with your credit card company.
So you will be smacked with the over the limit fee (probably about $35.00)> and you might have to pay a late fee if you paid the minimum amount. If you did not pay the usual amount (plus the late fee) then you WILL be reported as late. If this happens, look for your interest rate to go up so the minimum payment that was 200 before your extra ten bucks could turn into a new payment of 300 buck with your over the limit fee, your late fees and your new interest rate.
Now onto your credit.
Credit scores are comprised of a few things but one of them is the limit on your card verus available credit.
The ideal amount is 35 percent or less. Meaning you dont want to have more than 34 percent of your credit limit being utlized. If you go over that amount your credit starts to drop. since you have NO available credit on this card, your score will be negatively affected.
NOt sure by how much since credit is a combination of factors, how much THIS will impact your score depends on what else you have going on with your other trade lines.
I so hope you make a decision to cut up the credit cards.
Use your stimulus payment to pay down as much debt as you can.
Best of luck to you
- May 14, 2011 at 10:30 am #275702
It’s always best that you stay 50% and below your credit limit. Anytime you go past that 50%, it serves as a negative factor to your credit file. Once creditors/lenders see this, it makes them then think you’re living beyond your means and you’re actually charging something in which you cannot afford. As for this being classified as a delinquent item, it will stay on your file for 7 years from the time it went delinquent. No one can tell you exactly how many points your score will drop. And here’s a little hint: “No one knows for sure exactly how credit scoring works!”
- June 10, 2011 at 4:30 am #438032
sure there is —
1. if you can afford to make your payments, you don’t get a modification.
2. if you’re unemployed, you get foreclosed instead.
3. modifications are only for the unlucky few — took a big cut in income but are now [perhaps again] employed full time. And the upper middle class need not apply.
- June 10, 2011 at 4:30 am #438033
You can request, but unless there is some sort of hardship (you took a substantial pay cut, for instance), you will not receive a modification.
Mods are not easy to receive approval for, at all.
- June 10, 2011 at 4:30 am #438034
Don’t fret and just be calm. Maybe you’re just missing out information regarding loan modification. Try to inquire regarding the obama loan modification program through the website reflected below. They are the right people to ask about this and are knowledgeable with the program.
May this help you. Good luck.
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