Over limit on credit card - bad credit history?
- Thread starter phil675
- Start date
If that's what the OP is doing then not a good start is it with going over the limit 
Just for emergencies and to build a bit of credit history, online ordering and so forth. I wasn't on a lot of money at the time I applied for it, to be fair having a low limit is probably beneficial for me! (Except when I go over by a few quid
)
I don't know the ins and outs of it, but I would have thought if you went over a credit limit, but paid it off then you would probably be fine, infact, they would probably increase your credit limit.
However, if you went over it and then kept missing repayments, it would effect your credit rating just how it normally would.
However, if you went over it and then kept missing repayments, it would effect your credit rating just how it normally would.
Associate
- Joined
- 28 Jan 2010
- Posts
- 344
It doesnt effect your credit rating, anything to do with limits on credit are all internal
It's not as bad as a late payment but you will probably have a "black mark" with the card company and risk future limit increases for a few months, but as long you you bring it back within the limit within a few days it should not show on your credit file.
Sorry, this is just completely untrue. Both Equifax and Expirian record credit limits, payments made, over-limits, missed payments and defaults.
Not all providers choose to share such information though - but the majority do.
For what it's worth I don't think going over a limit is that much of an issue, as long as it's not that often. It's not flagged as a missed payment (or a default - default is multiple missed payments and an explicit legal term).
It could be used by somebody assessing to give you credit, but unlikely IMO. When I have credit checks on tenants for example most over-limits are ignored, as are the odd missed payments (say 1 or 2 in a 36 month period).
Red lights for me/us are repeated over-limited, repeated missed payments (even if only repeatedly 1 month behind), and a high percentage of used available credit. By the last one, say you have 10k available and you're constantly using 9k+ of that as a running balance - that would set the alarm bells off.
By way of example, this is Experian's record of the card I use for day to day stuff:
it also further breaks-down to show you any whether only the MINIMUM payment has been made, and whether you're over the limit at any point in the month.
A lot more info than you imagine.
it also further breaks-down to show you any whether only the MINIMUM payment has been made, and whether you're over the limit at any point in the month.
A lot more info than you imagine.