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Credit Cards

Credit Card Basics:
-Credit Card Benefits
-Glossary
-Applying for the Right Card
-Card Offer Pros & Cons
-Cash Advances
-Balance Transfer Tips
-Smart Credit Card Use
-Going Over-the-Limit
-Credit Card Scams
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-Paying Bills on Time
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GOING OVER YOUR CREDIT CARD LIMITS
Most people are not aware of the consequences of charging their credit card over the limit. You will incur an expensive penalty fee. Typical over-the-limit charge are $29 and $35. Going over the limit equates to damaged credit, even if you have a great credit history.

The fees associated with any type of credit card are going to be clearly displayed in the credit card agreement. Your monthly statement is also going to list your credit limits as well as your balance information and payment due dates.

Most people do not read the fine print of their credit card agreements, or their bills, and become shocked when they get hit with the over-the-limit fee. It is very common for people to find out about the over-limit-fees for the first time after getting charged for one.

How do I end up going over the available limit?
When you make a purchase that is greater than your available credit limit, the credit card issuer will do one of two things: decline your transaction, or approve it and charge you the over-the-limit penalty fee.

It is also common practice by credit card companies to approve a transaction that exceeds limits and then to increase the customers credit line automatically. This is usually done only for their best customers, i.e. someone that has had an account for several years, has never been delinquent on a payment and maintains minimal credit card debt.

Companies are in-tuned with offering credit cards to potential clients with specific credit profiles. This includes the handling of over-the-limit fees. This means credit card issuers will determine what clients can exceed their credit limits, and by how much. Credit card companies do not want to decline any purchases.

 

Ways to avoid going over your credit card limits
The fees being charged by credit card companies for going over your limit is growing, and is going to continue to get higher. Below is information that will help you avoid going over your credit limits.

 - Keep track of your spending - Doing this will help you stay way within your available limits. Always leave a cushion just in case you have to make an unanticipated purchase.
 - Enroll for free e-mail alerts - Credit card companies will often send you an email if you are approaching your credit limit.
 - Know what your limit is and what your balance is - You may even also be able to request that your credit card issuer does not allow purchases to be made that are above the limit.
 - Request a credit line increase - If you anticipate making a large purchase, call and try to get your limit raised.


 

 

 

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