Does going over your credit limit affect your credit score? If so, how serious is it?
Answers:
This is how your score is broken down:
1. 35% payment history
2. 30% total debt vs. available credit
3. 15% length of time establishing credit
4. 10% types of credit
5. 10% inquiries and the ratio between new accounts and established accounts
Going over your limit directly affects #2, which is close to ⅓of your score. It's ideal to be at 30% of your total available credit on all accounts. What may help is to request for a line increase to prevent from going overlimit in the future.
If u go over by the new cycle then yes..
Yep, bad.
It might not, if your limit is fairly low, and you pay it back very quickly. If you habitually exceed the limit, that will show up.
Once or twice for emergency reasons, and if you pay it down below the limit by the end of the billing cycle, you'll be ok.
It does effect it. You should pay down your balance as soon as possbile. You typically only want to use 30%-50% of your total limit. The higher the balance the worse off you are. It shouldnt lower you score too much as long as you pay it down below the credit limit soon.
As long as you pay it off on the same cycle it wont hurt you. In other words it does not show up as a negative on your credit report. I have done it several times and never seen anything about it on my report.
However, having your credit card at or near its limit is a bad thing for your credit score in itself.
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