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.

When you're charged

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.

1. Monitor spending closely.

2. Sign up for free e-mail alerts.

3. Make the limit your limit.

4. Call ahead and get that limit raised.

5. Check out cards from local banks and credit unions.