Table of contents
Chapter 1: Match card and lifestyle
Chapter 2: Credit reports and scores
Chapter 3: Costs and fees
Chapter 4: Managing your cards
Chapter 5: Using credit wisely
Chapter 6: Special-need card users
What happens when I charge my credit card over the limit?
You will be socked with a hefty penalty fee. Over-the-limit fees of $29 and $35 are common.
Norm Tapper, a Bankrate.com reader in Indiana, was charged a $25 late fee and $25 over-the-limit fee on a Capital One card with a $300 limit.
Issuers point out that fees are spelled out in the credit-card agreement and monthly statements list credit limit, balance information and due dates. But a lot of people are shocked by over-the-limit fees. In fact, most people learn about a card's over-the-limit penalty after they get charged one.
A third option, approve the transaction and automatically lift the credit line, is reserved for the best customers.
Today's issuers are adept at targeting card offers to a customer's specific credit profile and that includes the handling of over-the-limit charges. Issuers decide which customers can go over credit limits and by how much. The last thing an issuer wants to do is decline a card purchase.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
A little research could save you BIG on interest.