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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
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
- 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.