Question : How bad will going over my credit limit affect my score?
I have a Visa Card with Bank of America with a limit of 700.I recently went over my credit limit twice within about a month period. (However I am constantly checking my account balance and making payments when I get money)I know it is not good to even have this amount of debt and that I should stay at 30% of my credit limit. I am working to completely pay off this card and am no longer using it. How bad would you say my credit score may have been affected?
- asked by Sara C
All Answers:
Answer #1
The worst part is they will probably raise yourinterest rate, besides chargeing you all thosefees, it does lower your fico score but you canbring that back up if you pay and don't charge itanymore.I recommend reading DAVE RAMSEY's Book toyou.The Debtor is Slave to the Lender,....remember that.
- answered by TaylorProud
Answer #2
It won't affect your credit much except for thepoints related to your amount used to amountavailable revolving credit ratio. But you don'treally have many points to lose if you are at 99%.
- answered by Bob
Answer #3
No effect... Here is a article about How arecredit scores calculated.Credit scores aregenerated by plugging the data from your creditreport into software that analyzes it and cranksout a number. The three major credit reportingagencies don’t necessarily use the same scoringsoftware, so don’t be surprised if you discoverthat the credit scores they generate for you aredifferent.Why are credit scores sometimes calledFICO scores?The software used to calculate a greatnumber of credit scores was created by Fair IsaacCorporation–FICO.Which parts of a credit historyare most important?The pie chart above right showsa breakdown of the approximate value that eachaspect of your credit report adds to a creditscore calculation. Use these percentages as aguide:35% - Your Payment History30% - Amounts YouOwe15% - Length of Your Credit History10% - Typesof Credit Used10% - New CreditYour Payment HistoryIncludes:Number of accounts paid as agreedNegative public records or collections Delinquentaccounts: total number of past due items how longyou’ve been past due how long it’s been sinceyou had a past due payment What You Owe:How muchyou owe on accounts and the types of accounts withbalances How much of your revolving credit linesyou’ve used–looking for indications you areover-extended Amounts you owe on installment loanaccounts vs. their original balances–to makesure you are you paying them down consistentlyNumber of zero balance accounts Length of CreditHistory:Total length of time tracked by yourcredit report Length of time since accounts wereopened Time that’s passed since the lastactivity The longer your (good) history, thebetter your scores Types of Credit:Total number ofaccounts and types of accounts (installment,revolving, mortgage, etc.) A mixture of accounttypes usually generates better scores than reportswith only numerous revolving accounts (creditcards) Your New Credit:Number of accounts you’verecently opened and the proportion of new accountsto total accounts Number of recent creditinquiries The time that’s passed since recentinquiries or newly-opened accounts If you’vere-established a positive credit history afterencountering payment problems In general, checkingto make sure you aren’t attempting to opennumerous new accounts Credit scoring software onlyconsiders items on your credit report. Lenderstypically look at other factors that aren’tincluded in the report, such as income, employmenthistory and the type of credit you areseeking.What’s a Good Credit Score?Credit scores(usually) range from 340 to 850. The higher yourscore, the less risk a lender believes you willbe. As your score climbs, the interest rate youare offered will probably decline.Borrowers with acredit score over 700 are typically offered morefinancing options and better interest rates, butdon’t be discouraged if your scores are lower,because there’s a mortgage product for nearlyeveryone.Here’s an look at credit scores amongthe US population in 2003:Up to 499: 1%500 - 549:5%550 - 599: 7%600 - 649: 11%650 - 699: 16%700 -749: 20%750 - 799: 29%Over 800: 11%Multiple CreditScoresYour bank will pull credit reports andscores from all three major credit reportingagencies: Transunion, Equifax and Experian.They’ll probably use the middle score to workyour loan application. Ask your lender to explainwhich credit scores will be used and how theyaffect your loanapplication.
http://www.apply-best-credit-card.com/how-the-credit-score-is-calculated/
- answered by Kids B
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