Credit card going over the limit due to interest fee

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fansrancisco
 
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Credit card going over the limit due to interest fee

Postby fansrancisco » Thu Jun 30, 2016 9:05 am

Morning,

I have the Wells Fargo Platinum VISA card and recently my credit card went over the credit limit by $36 due to interest fee charged by Wells Fargo. Due to my card going over the credit limit, Wells Fargo made a note on my credit profile as "Derogatory" for going over my credit limit. But my card went over the credit limit due to the interest fee transaction authorized by Wells Fargo.

I have always paid more than is due and paid on time.

1. Am I liable to pay OD fee?
2. Am I able to ask Wells Fargo to retract the derogatory note on my credit profile?

I called them and the agent was very ambiguous on both my questions and kept going back to the fact that because i went over my credit limit on my card and when I explained it was due to interest fee charged by Wells Fargo they would go back to saying "anytime you go over your credit limit".

Any advice would be helpful.

SF


TXviking
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Re: Credit card going over the limit due to interest fee

Postby TXviking » Thu Jun 30, 2016 7:01 pm

1. Yes, you are. WF's terms and conditions explicitly allows them to do things like this.
2. You can ask, but they are not obligated to accommodate you

Your best bet is to pay off the card (in full), tell them this was a one-time thing, and request a courtesy waiver of the overdraft fee. At the same time, ask if they would consider pulling the derogatory.

All that done, try not to keep such high balances on your credit cards that this becomes an issue. Keeping utilization to below 5% may be unrealistic if you're starting out and have low limits, but at any rate you should strive to avoid utilizing more than 1/3 of your credit line.

And if I were you, I'd ditch WF. I've had worse experiences with them than with any other bank.

takeshi
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Re: Credit card going over the limit due to interest fee

Postby takeshi » Fri Jul 29, 2016 9:35 am

It's up to to to prevent from going over the limit and that includes interest and fees assessed, not just purchases.

Given the impact of Revolving Utilization (balance[s] / limit[s]) you don't want to have a high balance reporting anyway. 30% is the generally suggested maximum. If you were high enough that interest drove you overlimit then you were already too high.

Your creditor provides you with a card agreement when you receive the card that indicates how interest and minimum payments are calculated. There are interest calculators online that you can use to determine what the interest would be.

fansrancisco wrote:I have always paid more than is due and paid on time.

Paying on time is good. The minimum is just the least you have to pay to keep your account current. You need to consider Revolving Utilization and your limit as well. You need to aim to pay every statement balance in full to avoid incurring debt and interest.

fansrancisco wrote:Am I liable to pay OD fee?

It's not a checking or savings account so overdraft is not relevant. There are, however, potentially other fees. Read your agreement and understand it. That stuff isn't just packing material for the card. It's important information.

fansrancisco wrote:Am I able to ask Wells Fargo to retract the derogatory note on my credit profile?

You can always ask but they're under no obligation to remove valid information. Get that balance paid off and then try asking them for removal.



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