Credit card limits

A lot of times I will see clients that have not realized they have gone over their credit card limit, or they have mentioned to me, at time of application, that their credit card limit was paid down, and is no longer above the limit. Here’s how it works: If your credit card limit is $1000 and your balance is $980 at the time your bill is released, then chances are it will show over your limit. What most people dont realize is interest gets calculated on the balance and the bank will always allow interest to calculate, therefore bringing you over your limit. When applying for a car loan or trying to get a                          car loan pre-approval this will be looked at from the potential lender as a negative. Even if you have paid it down by the time you apply the lender will look at it like you are mis managing your credit, and more then likely not want to grant credit at the best rate due to this. It is important to know the difference between reporting date and bill release date. I would suggest contacting a credit bureau and seeing when each of your credit lines reports to the bureau. It is very important to have your credit used not exceed your limit at time of bill release. When applying for a car loans Calgary or looking to get a low interest rate car loan its best to go into the process knowing where you sit. If your credit card shows over balance then wait until the next billing cycle and make sure it is paid down. It is also important to have your credit card limits not be utilized over the 50% mark. This means that if your limit is $1000 then try to not use(or have it show) that your over $5000 used. Credit cards, if you need the,. are not free money. They should be used for credit, and credit is not the consumers money, it is the banks. When your applying for a car loan in calgary or filing our an                         application for a car loan try to choose an outlet that will spend the time with you, to ensure you are aware of what your car loan interest rate is why it is that rate.

Just my 2 Cents

-M

Mark

Mark