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2006-11-02 05:38:26 · 3 answers · asked by Anonymous in Business & Finance Credit

capitol one

2006-11-02 05:44:58 · update #1

3 answers

it depends on your bank. Read the fine print on your bill.

Some banks increase your rate to very high levels, like 25-30%, AND charge you an over-limit fee. It all depends on which bank/card you have.

2006-11-02 05:43:47 · answer #1 · answered by Kutekymmee 6 · 1 0

It actually might not go up and if it does, each company has difference terms so you will need to either contact your creditor OR review your statement.

The problem with over the limit fees is that if you do this a few times, the account will be closed and placed into a collection agency. Also, when you end up over the limit, it reflects negatively on your credit report which will make it harder for you to get new lines of credit because creditors will not want to trust you.

The best thing to do is pay off all of your credit cards and not spend any money on them. If you HAVE to use them, only use 25% of the available limit if you want to maintain good credit.

2006-11-02 13:42:14 · answer #2 · answered by Brey 3 · 1 0

It depends on the terms of your agreement with the creditor. Your credit card company may only charge you the over the limit fee while leaving your current rates as is. You'd be better off calling your credit card company to find out if your rates have changed. They can provide you with all of the specific information that you need.

If you are continually going over your credit card limit within a minimal range, but consistently pay the balance, you may also consider asking for a credit limit increase. However I caution that if you do request an increase, ask that they do not run your credit information to do so. You want to keep your negative credit inquiries at a minimum.

You may also want to contact your credit card company, and ask them not to back your purchases if they exceed the limit. This way your charges are rejected, and you don't run the risk of being charged another over the limit fee.

If you find yourself exceeding your credit card limit constantly, and are unable to financially back your purchases, you may find it most advantageous to look into alternative charge options such as a prepaid or secured card.

2006-11-02 13:41:56 · answer #3 · answered by Janx 2 · 0 0

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