credit card qustion anyone know about credit cards?

Question

ok i just got a credit card with so much money on it i dont wanna mess up my credit so can i olny spend the amount of credit they gave me or can i go over it then pay the bill of what i spend when it come's i think i have 1000$ of credit on the card can i go over it? or can i just spend the 1000$

Answer 1

Even using a large portion of your limit (more than half) can red flag your account, and possibly cause a drop in credit score, increased mortgage rates, increased insurance premiums...it's called Universal Default, you screw up with one company once, all the other companies you depend on can screw you back. Don't charge it if you can't pay it all off on the next statement, or else you have to pay huge interest. If you think $1000 is free money, think again, you will have to pay it back. $1000 is easy to spend, hard to earn, imagine how many hours of work you need to pay it off. Last time I checked over the limit fee was $35 for my account.

Answer 2

you never want to go over the limit on your credit card. They charge an over-the-limit fee, most times $25. It also looks bad on your credit report, it shows that you don't know how to watch your spending. I wouldn't spend the $1000 either unless you're planning to pay it off as it comes in. Meaning if you spend that $1000 make sure you have the $1000 in your checking account to pay it off. Unless you want to pay finance charges out the butt. I nearly maxed out my very first Visa, and I was paying almost $20 a month in finance charges. I found out the hard way what having a credit card is all about. Don't make that same mistake, even though I have learned and at an early age,don't make that same mistake. It's a b**ch to learn that way but I am on top of my credit because of it.

Answer 3

DO not go over it, you will get socked with over the limit fees which will add up VERY quickly. DO NOT max out your card either, no matter how tempting. It is very easy to ruin your credit. Pay your balance at the end of every month, that way you won't get charged finance charges (that can add up to lots of cash, because lots of times they have crazy interest rates like 28 percent, that's 28 cents on every dollar!). And, don't mail your payment late, or you will get some more fees. If you have a job, try not to use your card, pay cash when possible.

Answer 4

Don't start out with a credit card wondering how you can manipulate the system. If you're responsible with your use of credit, it will pay you back over and over again. Once you screw up your credit, it takes a long, long time to make things right again. Do not go over your limit. They'll either "freeze" your card or charge a fee. Charge only what you can easily pay off.

Answer 5

You can only spend less than the credit line. In fact it is always safe not to spend all the money in the credit card because of the finance charge and interest that might push your spending over the limit of the card.

Answer 6

Most credit cards have an "over-the-limit" fee if you pass your limit of $1,000. Don't forget, this isn't free money but your future earnings. Be responsible and don't charge what you can't afford to pay off each month. Smart people use credit as a tool and not a crutch.

Answer 7

If you read the disclosure notice with the card, there are fees if you go over the limit. How are you going to pay the $1000 back? Minimum payment? It will take you many years to pay it off.

Answer 8

Keep in mind it's only credit until you use it then it becomes debt . I work in financial services and I have helped many people to payoff their cards. Some of them owed the credit card company 60-70 thousand and one of them even defaulted and was facing jail time and restitution until we were able to help.I know this is way out of the league of your question but many of these people started out like you. So enjoy the responsibility of you new credit card, but just know what your dealing with.

Answer 9

They may let you go over it by $100.00 but then they will denie your charge. They may not let you go over, but usally they will and then they can charge you the overlimit fee ($20-$40). They don't always charge it, but can.