I pay off my credit card bill every month and usually spend right up to the limit- I called to ask for an increase and they denied me, but they didn't decline my card when I went over and then charged me an overlimit fee. Is that supposed happen, legally? What the heck?
2006-09-11 11:58:30 · 19 answers · asked by hezzrozz4 1 in Business & Finance ➔ Credit
Yes, even though you think that you are using your credit card responsibly, the credit card company sees someone who is always borrowing up to their max than paying it off. To get the credit card company to increase your limit, try charging only up to half of your limit than paying it off for a while. Or do what I did and charge some on my credit card, pay it off over a couple of months than charge some more on it keeping well within my limits. They took me from $500 to a lot more than that in less than a year.
Yes, it is legal for them to charge you for going over your limit since you have a binding agreement with them. What I have done in the past is if I am up close to my limit, I will go online and make a payment to give me breathing room.
2006-09-11 15:20:26 · answer #1 · answered by andy 7 · 1⤊ 0⤋
Absolutely. In fact, going over your limit proves that they made the right decision in not increasing it. It doesn't matter if you pay it off every month. The mere fact that you take the card to the limit every single month shows you may be a credit risk that one day you just may not. The fact that you not only came so close to the limit, but crossed it, pretty proves them right. You don't manage your credit very well. You will also find that taking your card past the 30% mark on such a regular basis slams your credit score. Guess what? The world isn't all about you. It's not illegal for someone to tell you "no."
2006-09-11 15:19:17 · answer #2 · answered by misslabeled 7 · 1⤊ 0⤋
You must have a really low credit limit. Stop going over the limit and pay the minimum for a few months and then ask for a credit line increase again. Maybe they are flagging the fact that you pay the balance in full every month. Try maintaing a balance for a few months without going over the limit and then try again. In my experience if you do this eventually they will increase your credit line automatically.
What they are doing is all in the fine print of the Agreement. If you do not like it, do not use the card.
2006-09-11 12:04:00 · answer #3 · answered by Kokopelli 7 · 1⤊ 1⤋
My CC company (visa) kept on increasing my limit and eventually lost me, I still have the card but I am too afraid to use it in case someone gets hold of the details.
I always use the mastercard instead, small limit so whatever happens it's just a small amount.
Basically I'd suggest you start searching for a better bank, if you pay on time, they all seem eager to lend you MORE, so I am not sure what yours are playing at, I wouldn't think they are competent and leave them.
An easy way to increase your "limit" is to just pay in the money yourself, this is what I do to my mastercard when I go on holyday for instance I "raise" it by just paying it in.. hey I am not rich, in fact quite poor so if I can do it.......
here's some good reading:
http://credit-cards.ebookorama.com
and here http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck! hope my little rant helped you.
2006-09-11 12:44:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes. Folks, read your terms and conditions before you act. They are there to protect you, so that you don't come here, and ask if it's "legal" for them to do something. Rarely will a credit card company risk regulatory and popular scrutiny for a $29 over limit fee assessed "illegally"
2006-09-11 15:02:45 · answer #5 · answered by Jason 3 · 1⤊ 0⤋
Of course they can. You agreed to a certain limit. You are now asking for more money, which is basically saying, " Loan me more money!!"
The reason you go over is that you charge multiple charges that haven't yet posted-- your charges are not "instantly" deducted from your limit like an ATM-- there is a delay there. So they are not intentionally giving you more than you can take, its just that they havne't caught up to your spending just yet.
Quit spending up to your limit and you'll be fine. If you can afford to pay it off, why not just pay cash??
2006-09-11 12:23:27 · answer #6 · answered by Anonymous · 1⤊ 0⤋
OK look, the credit card companies don't give a rats *** about you! you think they do this for your benefit!? they only give you a card cuss you have to pay them interest and overage fees and all that other crap. You are not a "respected customer" you are a cash machine to them.
Another thing, read the fine print before you sing up for a credit card, they have the power to change your terms of agreement even after you singed. They can even change the price of something you already own.. that's if you're still paying it off in witch case it still belongs to them.
2006-09-11 12:08:08 · answer #7 · answered by Anonymous · 0⤊ 2⤋
yes it is, just a thought for you why go so far up to and over your limit each month..............from their point of view you are almost [ish] getting to the point of being a bad risk and then you more or less prove it by going over AFTER you asked for the increase, I know you pay it off each month so the money is not the problem, so why not have a bit more spending cash in your pockets and use that instead of paying them to use your own money ???
2006-09-11 12:06:35 · answer #8 · answered by candy g 7 · 2⤊ 0⤋
Yes, they can. Ask them why they denied you. If you received an income increase, tell them that. If not, go to another big credit company like Citibank or Bank of America.
2006-09-12 06:25:12 · answer #9 · answered by Steve R 6 · 0⤊ 0⤋
Yes - check the terms & conditions which you will have accepted to receive and use the card.
2006-09-11 12:04:04 · answer #10 · answered by aarcue 3 · 1⤊ 0⤋