Latest Addition

What is a Credit Card Over Limit Fee?


What is a Credit Card Over Limit Fee?

Are you tired of getting hit with over-limit charges on your credit cards? With a little care, you can avoid these penalties altogether. Understand that a credit card over-limit fee is essentially a penalty imposed when you exceed the maximum limit set by your card issuer. These fees can vary depending on your bank or financial institution.

Typically, if you go over your limit, you'll be required to pay off the total amount owed to your card issuer along with the over-limit fee. These fees can be triggered by various factors, including purchases, interest charges, late payment fees, taxes, auto-debit payments, or card renewal fees. To prevent unwanted costs, it's safer not to opt-in to exceed your credit limit. By taking a few simple precautions, you can steer clear of over-limit fees and keep your finances in check.

To avoid over limit fees:

1.    Never exceed the full limit.

2.    Always keep enough credit card balance and spend the rest.

3.    Maintain a credit limit of such an amount or more that the maximum balance of the card never exceeds the total credit limit after adding interest or other charges to your total outstanding when the next bill is generated.

4.    Be safe by paying some amount before the bill is generated if there is a very high transaction in any bill cycle and there is a possibility of exceeding the limit.


Thank you very much, everyone.