Don’t go over your Credit Limit, This can Hurt
Many consumers believe that they can go over their credit limit as long as they pay the money back before the due date. This is a common credit card myth, and one that can get you in a lot of trouble. You have a credit limit for a reason. You are not permitted to spend more than this amount even if you are going to pay it back before the due date. Sure, your credit card company will let you go over your limit but they will charge you for this soon enough. Do you really want to pay a penalty in addition to your regular bill?
What will happen if you go over your credit limit? For one, it is common for your creditor to increase your interest rate. In turn, every purchase you make from there on out is going to cost you much more.
As noted above, going over your limit is also going to force your credit card company to charge you a fee. Do you know what your over-limit fee is? Even if you don’t ever plan on going over your limit, you should still know what this fee would be if you make a mistake. Generally speaking, an over-limit fee can range from $50 to $75 but it is still a good idea to know the exact number.
As you can see, if you exceed your credit limit it can hurt in many ways. Not only can your credit card company raise your interest rate but they can charge you a hefty fee as well. To avoid this, always know your balance as well as your limit. This will go a long way in ensuring that you don’t ever get close to exceeding your limit and triggering a nasty string of events.
