Credit Limit

RG2015

I have been using a credit card since 1978 but I have only recently acquired a 0% card. I have never even approached my credit limit so this is all new to me. My question is hypothetical but of great interest to me.

Does anyone know if my credit limit would be breached when my available credit went negative or would it only be in default when my balance exceeded my credit limit a day or two later?

[Deleted User]

You'll go overlimit as soon as you go over the limit. Some will not charge a fee if you come back under the same day.

Whether it is reported to the CRAs, depends on on their reporting cycle.

bengal-stripe

RG2015 wrote: »

Does anyone know if my credit limit would be breached when my available credit went negative or would it only be in default when my balance exceeded my credit limit a day or two later?

Don't risk it finding out! - You probably will lose your 0% promotional deal.

Ben8282

RG2015 wrote: »

I have been using a credit card since 1978 but I have only recently acquired a 0% card. I have never even approached my credit limit so this is all new to me. My question is hypothetical but of great interest to me.

Does anyone know if my credit limit would be breached when my available credit went negative or would it only be in default when my balance exceeded my credit limit a day or two later?

Wow! You have been using credit cards for even longer than I have and have never before had a 0% card or offer. Your credit history must have been really bad.
As soon as your available balance becomes negative you will have exceeded your credit limit. If you plan to do this and then repay before the actual statement balance exceeds your credit limit in 1 or 2 days, I would caution against it as even if this is not reported to CRA's it will definitely affect your internal credit rating with the credit card issuer. Reduce the balance first then spend.
Also, if you plan doing this on a 0% card you risk loosing the 0% deal.

RG2015

Ben8282 wrote: »

Wow! You have been using credit cards for even longer than I have and have never before had a 0% card or offer. Your credit history must have been really bad.

Until 2014, I only had 1 bank a/c and 1 credit card, both from the 70s. I then got a reward credit card and also checked my credit reports with the 3 CRAs. None of my credit reports had any accounts so my credit history wasn't bad, it just did not exist!

Thanks for the replies and as I said it was a hypothetical question and I do not intend to do this. I just wondered if a credit card balance was like a bank balance which was only calculated at the end of the day (or at least 2pm) for bringing an account back into credit/terms.