Going over your limit?

[GoldenloveNY]

According to my Discover It, there is no fee in going over my limit. However, I never knew one could charge beyond their credit limit. I was in the understanding that let's say ccc "X" gives one 1k, then you cab only charge up to that amount. Any charge after that will be declined. So one could go over their limit? Really? By how much? Will this lead to your lender giving you Cl?

[chnceit]

You need to "opt in" in order to go over your limit its part of the new credit card act.

[FloridaState12]

The only time I ever went over my limit was because I had a pending gas transaction... it only showed as 1 dollar but when it cleared it was like 50 dollars so it pushed me over my limit. I'd imagine that's the only way to go over- when pending transactions clear and end up pushing you over.

[Roarmeister]

It is quite possible to go higher than your limit. Not by charging on it though but if don't keep up with payments the intererst can easily take you up and over the limit.  Not desireable in any sense.

[GoldenloveNY]

Okay, now I understand. Thanks guys! 

[Wolf3]

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@chnceit wrote:

You need to "opt in" in order to go over your limit its part of the new credit card act.

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Not True.   The "opt in" only allows them to charge you a fee for it..   They can choose to accept or decline any charge whether you opt in or not.

Paypal Smart Connect has let me go over my limit by quite a lot and I let it report.  They didn't charge me since I did not opt in. They did not increase my minimun payment to bring it below CL balance.    I PIF and the next month, I got a big CLI.

I think whether they accept or delince depends on creditor and your spending and payment habits.

[bs6054]

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@Wolf3 wrote:

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@chnceit wrote:

You need to "opt in" in order to go over your limit its part of the new credit card act.

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Not True.   The "opt in" only allows them to charge you a fee for it..   They can choose to accept or decline any charge whether you opt in or not.

Paypal Smart Connect has let me go over my limit by quite a lot and I let it report.  They didn't charge me since I did not opt in. They did not increase my minimun payment to bring it below CL balance.    I PIF and the next month, I got a big CLI.

I think whether they accept or delince depends on creditor and your spending and payment habits.

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Right, so as has been posted here before, opting in really makes little sense: it doesn't guarantee that the charge will go through, just that if it does go through, you will get charged.  And if you don't opt in, the charge might be allowed anyway.

[Dustink]

Most banks will gladly allow you to charge over your limit. If you do not opt in, you can not be charged a fee for going over. If you opt in and the terms of the card indicate an over limit fee, then you will be charged that fee if you go over. As for the discover it, you may go over your limit as you wish. Just keep in mind that your utilization may be adversely effected.