What Happens If You Go Over Your Credit Limit?

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Your credit limit is the maximum amount you're allowed to spend on a credit card. It is possible to go over your credit limit by making a transaction or because of fees and interest. Going over your limit can result in fees, a higher interest rate, and a drop in your credit score.



Introduction No one wants to go over their credit limit. It can be an embarrassing and concerning experience with long-term effects, especially if you have a short credit history. Credit card issuers extend a credit limit based on debt, income, and ability to repay the amounts you charge to your card.

While it's increasingly harder to go over your credit limit, it's possible. But it's best to stay far from your limit if you can. Here's what happens when you go over your limit, and ways to prevent it from happening.

Your credit limit is your borrowing capacity, or the amount of money you can charge to your credit card. Most often, if you make a charge that will put you over your credit limit, you will see your card declined . A few banks offer over-limit protection — but you have to opt into it, and agree to pay fees for going over your limit.

The Credit CARD Act of 2009 legislated that fees are limited to the a.