credit limit

[lanaa]

Hi all, I'm new to this forum.
I was wondering what will happen if I go over my credit limit on my credit card? Is this bad for my credit history?

[wakii]

Yes I think it is. Try not to do it.

[Canadian]

You'll have to pay a penalty fee, if you go over your credit card limit. Keep in mind that such penalty fee are usually quite high (over $25) and always try to avoid going over your credit limit. You can check all the credit card fees in your credit card contract. If you try to purchase something on your credit card and the purchase exceeds your limit, then 2 things may happen. The first one is the bank declining the transaction, and the second one is the bank allowing the transaction, but charging you the fee.

[Lumber Joe]

Such situation is subject to penalties and exceptionally high interest rates.

[bullish]

I've never gone over my credit card limit, however I'm pretty sure there are penalties if you do this.

[Steven]

Yes there are penalties of course, and you can check how much it will cost you with your credit card company.

[trent]

Although I use one of my credit cards a lot, I always pay it off in full when its due. It's just more convenient for me to charge anything I can on the card, because there are no charges for using it, I get cash back for every dollar spent up to a certain limit, and I can clearly see what I spent my money by simply looking at the credit card statement.