Credit Card Over Limit Fees – Tips to Avoid Them

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Swearing off the plastic because of the disadvantages of using a credit card is not always a smart idea. Using credit cards can help you to gain rewards and build credit. 

And while you definitely want to use credit cards so that you can take advantage of the benefits of being a cardholder, you wouldn’t want to spend too much and end up taking a balance.

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You need to make some adjustments if you fail to adhere to fair spending limits and find that you regularly charge too much on your credit cards. Here are several tips to help you avoid spending over the credit limit allocated to you, so you can avoid over-limit fees.

Credit Card Over Limit Fees - Tips to Avoid Them

Don’t Opt-in To Credit Limit Fees

Before they can charge you a credit limit fee, the credit card issuer needs to have your authorization. Over-the-limit purchases can be “opted out”

If you do so, you will not be charged an over-the-limit fee for any transaction that would place you over the maximum. Your charge could go through if you preferred over-limit protection, but you could be faced with charges, higher interest rates, or lower credit limits.

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Attributed to the high balance on your card, you might also see your credit score decrease. Your credit card issuer could close your credit account if you incur too many over-limit fees.

Know Your Credit Limit

If you don’t know what it really is, it is much easier to go beyond your limit. Check your billing statement to know your credit cap, log in to your online account, or contact your credit card customer service using the number on the back of your credit card. 

If the issuer of your credit card has a mobile app, before making any new credit card transactions, you can download the app to access your account. Since creditors often increase and lower credit limits, checking your limit regularly is a smart option.

Keep Track Of Your Current Credit Card Balance

You’ll want to stay on top of how you’re doing after you’ve put restrictions as to how much you can charge every month. You can do this by logging into your online credit card account on a frequent basis. 

You can sign in daily or weekly to see what your current card balance is, depending on how much you charge items. Evaluate the amount you have spent and the funds you have left to cover your bill or to the limits of spending you have imposed for yourself.

If at the end of each month you’ve surpassed your spending limit or you’re not going to have ample money to pay off your balance in full, avoid charging instantly to avoid credit card debt.

Credit Card Over Limit Fees - Tips to Avoid Them

Look Into Apps That Alert You When You’re Overspending

When your credit card balance reaches a certain amount, several apps allow you to set personalized alerts.

To establish spending limits on particular spending categories, you can also use budgeting apps and connect your accounts to the app so that you can easily monitor whether you are staying to your limits.

When you get near to your budgeted amount or surpass your limit, many of these apps will notify you. You will be alerted right away when you start spending too much — even if you fail to notice your card balance. This is going to inform you when it is time to stop spending.

Bottom Line

Although short-term gratification can be obtained by spending beyond your credit limit, it can cause long-term money difficulties, including penalties, debt, and harm to your credit score. 

If you go over your credit limit, calm down and recall why you went over your cap in the first place, and evaluate your budget.

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