are you considered to be over your credit limit only when a over the credit limit fee is charged to your account?
I was declined over the phone for a credit limit increase by Capital One after two months. They sent me a letter which gave the reason as "previous overlimit status." I had gone over my limit after one month, when the annual fee was first imposed. Dumb move on my part, and dumb procedure on their part. The letter mentioned "previous overlimit status," but no overlimit fee was ever imposed. This was the internal Capital One reporting system. As far as credit bureaus go, I think an overlimit balance only shows up if you are overlimit on the statement closing date.
Did you call Capital One about the decision? Most companies do their requests through a computer and it is not smart enough to see "why" you were over limit. If your annual fee was the only reason you were over the limit, chances are the company may do another review and take that circumstance into consideration.
