Over the limit fees on your credit card no more

Did you know that when you purchase something on your credit card and you are about to go over your credit limit for that card, your purchase still goes through. Meaning your credit card company does not deny your purchase, and next thing you know you have just gone over your credit limit and you will be hit with a over the limit fee on your next bill.

When you receive the bill and decide to pay only the minimum required payment you barely squeeze under the credit limit again. Next billing cycle, even if you didn't use the card, you notice you are over the limit again, and yep, you got charged another over the limit fee.

Why does this happen?
It is because of the interest rate on your balance is added to the total on the account. The almost to the limit balance pushes the next balance over the limit again, and so it keep going.

In order to get out of the over the limit fee cycle you need to pay more than a minimum payment on your credit card. At minimum add the late fee amount, typically $39.00 on top of the minimum fee. Whatever amount you pay over the minimum needs to be high enough to cover the finance charges that keep accruing on the account.

Of course it may be a good idea to keep the card out of your wallet as well, to avoid accidentally using the card and going over the limit again.