Exceeding credit limit question

lala9

Hello

It states on my credit report a negative impact to my score is that I have exceeded my cap one credit limit several times in the past six months, and then gives an example of this happening in July. My question is how long does this stay a negative on your credit report, six months, one year? This has happened due to interest being added that I haven't accounted enough for grrrr.

Thanks

Dobbibill

Any entries on your credit report will stay on there for 6 yrs.

The further in the past they are, the lesser the impact.

Steer well clear of the credit limit. Clear the card and then pay off in full each month you use it. Using like this will make you look far more financially responsible than over limit markers.

lala9

It's not on my report as such just listed on my dashboard as part of the positives and negatives of how my accounts are run. All my accounts are up to date and green.

Dobbibill

Have you checked all 3 CRAs?

Have you been able to expand the information to show more details? It may be hiding in there. If the CRAs are telling you about it on your dashboard, it's going to be on the report somewhere.

lala9

Yes, it reflects within my report, you can see the balance is over the current credit limit, this gets reported on a monthly basis as you know. But rather like search info, does this get forgotten about in six months time, and not so much of an issue for potential lenders? Or, is this going to haunt me for 6 years, surely not!? For going a couple of quid over your credit limit.

[Deleted User]

Its impact wears off with time, but that varies by lender.

It will be relatively insignificant in 6-12 months time, but a high prime lender may be put off by it for much longer.

More importantly, it depends on the overall picture. If you make a habit of it, and also only pay minimum payments, expect it to have a larger impact.

lala9

It has reported that I am overlimit for most of 2016 by a few quid as they apply the interest (we are talking vanquis here so not small amounts), I've not paid attention until its too late and gone over, but then promptly bought it inline under credit limit, but too late it has already reported that as the statement balance, the balance history on the other hand is fine.

Will this impact in a big way??

[Deleted User]

It paints a picture of an habitual offender - ie someone who isn't living within their means. So certainly not good.

Hopefully you're not looking at applying for a mortgage or anything significant in the near to mid future. Start paying on time and staying within the limit and let time do the rest.

sourcrates

For the purpose of borrowing, a potential new lender will look at your recent credit history, now this can vary between 6 months and a year or so, depending on the lender, and the product you are applying for.

As said above, for a mortgage application, they look at the full 6 years, for a loan or credit card, maybe the last 6 months.

Generally speaking the farther back in time negative information is, the less impact it will have on you.

lala9

Thanks guys, appreciate your comments. No mortgage applications in the near future, but I am looking to apply for a balance transfer card and a new bank account, think I will leave it for a few months though :-)