Are there any charges for an overlimit credit card?

Over-Limit Credit Card Fees: What You Need to Know

Credit cards are a convenient way to make purchases, but it’s important to be aware of the fees associated with them. One common fee is the over-limit fee. This fee is charged when you exceed your pre-approved spending limit.

Over-limit fees vary between issuers. Some issuers may charge a flat fee, while others may charge a percentage of the amount by which you exceed your limit. For example, one issuer may charge a $25 over-limit fee, while another may charge 2% of the amount over your limit.

It’s important to note that over-limit fees are in addition to any interest charges you may incur. If you exceed your credit limit, you will be charged interest on the amount over your limit. This interest will continue to accrue until you pay off your balance.

Avoiding over-limit fees is simple. Just be sure to track your spending and ensure that you do not exceed your credit limit. If you do exceed your limit, contact your credit card issuer as soon as possible. They may be able to waive or reduce the fee.