How does going over my credit limit affect my credit score?

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.|||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!"|||Being close to the max or overdrawing your credit card account can have adverse affects on your FICO credit score(s). This is because 30% of your FICO score is based on debt utilization, or how much of the debt you are using. When you are using more than 50% of your revolving debt that sets off flags and makes it look as though you are too dependent on the debt.





The first step is to get balance back under the limit. Then you need to work on getting the balance on the card under 50%. As a general rule your FICO score is best helped when you are using no more than 10% of your credit limit when the statement balance is reported to the credit bureaus.|||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)%26gt; 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