How to Avoid Paying Over the Limit Fees on Credit Cards

Do Not Pay Over the Limit Charges

Many people are under the impression that once they have reached the limit on their credit card their credit card will be denied for future transaction.  However, this is not the case.  The credit limit on a credit card is the amount of money can charge it with without being charged a penalty fee.  But the credit card company does not stop you from going over the limit.  Whenever he make a purchase beyond your credit limit the transaction will go through just like when you are purchasing renewal under the limit except for the fact that you will be charged a penalty fee.  In your next statement the minimum payment that you will be required to make will be just enough to put you under the credit limit again.  However, if you only make the minimum payment you will realise that you still get charged for an over the limit fee in your next monthly statement.

This happens for a simple reason. Whenever you go over the limit on a credit card the minimum payment on your billing statement is just enough to bring you under your credit limit again.  But if you are revolving balance on your credit card you will be charged monthly interest and other financial charges as well which will again bring your balance beyond your credit limit which will in turn again resulting you getting charged and over the limit penalty fee.

It is simple and easy to avoid paying over the limit charges on your credit card simply by making more than the minimum payment.  Once you make enough payment on your credit card that covers for the finance charges and the interest that will be charged on the balance that you are carrying your balance will stay under the credit limit for the next month as well.

It is important to stay under the credit limit on your credit card otherwise you will end up paying extra charges every month.

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