If you go over your credit limit, will the charge still go thru?

[MichaelD]

Say you have a $3,000 credit limit on your credit card. Your balance is $2,000. If you try and charge $1,300 will it go thru or get declined?

That is all.

FWIW...the card is with the financial institution I bank at...and am in excellent standing with.

 

[murphy55d]

Declined.

 

[MichaelD]

What confuses me is in the past, I've ACCIDENTALLY gone over by $20-$30 and it went thru.

This is an issue of "great buy right now that will not be there a week from now when I get paid."

 

[Lvis]

Sometimes it goes through, and your bank charges you a fee for doing it.

 

[MichaelD]

Bah. I just tried calling my bank...they aren't open. Sons of bitches. :disgust: Why couldn't I be rich instead of good looking?

 

[Zorro]

What are you buying i might wnat one

 

[murphy55d]

yeah, what hot deal is this? $1300 sounds like an HDTV on sale. Hmmmm.

 

[Amused]

Sometimes they will go through.

But be warned: Many times a low rate card will default to a high interest rate if you exceed your credit limit. Some low rate cards will default to the high interest rate even if you reach more than 80% of your limit on more than one account (First USA and Bank One i know for sure).

 

[MichaelD]

Heheh, not computers parts this time. It's a 5-piece set of HT speakers. Axioms. Link to Axioms' page.

I got in touch w/the bank and requested a limit increase. Should find out in the next few hours. They will turn me down. They turn EVERYONE down. The day I come into money, I will deposit it ALL in their bank.

Then exactly 48 hours later, take it all out and close my account, just for spite. Those fckers have never helped me out once when i needed it. They offer free everything and are local to me; the only reasons I stay with them.

 

[murphy55d]

Oooh, sweet.

Your neighbors will appreciate it.

 

[fr]

I think it will be declined if you try to go $300 over. It might go through if it's $30 over or less, but I think they will charge you a overlimit fee if it does.

 

[Jugernot]

Some cards do, some don't. It also depends on the amount, $300 over a $3000 limit is 10%... which is quite high. Sometime they let it slide if it's less than 5% over.

 

[cyclistca]

Originally posted by: MichaelD
I got in touch w/the bank and requested a limit increase. Should find out in the next few hours. They will turn me down. They turn EVERYONE down. The day I come into money, I will deposit it ALL in their bank.

They didn't turn me down when I ask for one a few years ago.

 

[DT4K]

Depends on the bank.
Most of them let small amounts go through.
That way, they can charge you a $30 over-limit fee for going 5$ over your limit.
If you got a card with a good rate, that good rate may be contingent on not going over the limit and not being late on any payments. If you do either of those, they will raise your rate to whatever they have defined as the "default rate".

 

[DT4K]

You could always get a payday loan. Places like QuikCash, etc.
Can be expensive depending on how much you want to borrow and how long it will be until payday, but it could be a better deal for you then going over your card limit.

 

[Vic]

Originally posted by: Amused
Sometimes they will go through.

But be warned: Many times a low rate card will default to a high interest rate if you exceed your credit limit. Some low rate cards will default to the high interest rate even if you reach more than 80% of your limit on more than one account (First USA and Bank One i know for sure).

Yep. And many credit card providers will report being over the limit as "30 days late" on the credit bureau.

 

[StageLeft]

Some low rate cards will default to the high interest rate even if you reach more than 80% of your limit on more than one account (First USA and Bank One i know for sure).

Now THAT is a dirty trick. Some credit card companies are dirty bastards.

Anyway as mentioned it depends on you and your car. My older brother used to overdraw on his frequently by a couple of hundred (this was in Canada). However I was once just under on mine (also in canada) and I couldn't even overdraw the pre-pay at a gas pump (I know that most companies pre-authorize for a buck before putting the final amount through. I don't know how gas stations do it, because I couldn't prepay for a gas tank's worth).

 

[Vic]

Originally posted by: Skoorb

Some low rate cards will default to the high interest rate even if you reach more than 80% of your limit on more than one account (First USA and Bank One i know for sure).

Now THAT is a dirty trick. Some credit card companies are dirty bastards.

Anyway as mentioned it depends on you and your car. My older brother used to overdraw on his frequently by a couple of hundred (this was in Canada). However I was once just under on mine (also in canada) and I couldn't even overdraw the pre-pay at a gas pump (I know that most companies pre-authorize for a buck before putting the final amount through. I don't know how gas stations do it, because I couldn't prepay for a gas tank's worth).

Interest rates are subject to market conditions beyond the credit providers control. Short-term rates (like credit cards) can not be securitized like a long-term closed-end mortgage. In short, anyone who thinks that "fixed forever at 2.9%" credit card really is fixed forever is a fool (or perhaps simply uneducated). If it was, the provider would go out of business within days after the Fed raised rates (which they will do someday).

 

[SilentZero]

Depends if its a Debit card or soley a credit card. Some people have overdraft protection on their accounts and if your debt card is used while you have a near empty checking the charge will go thru (at least it has once for me). With a credit card, not even a chance.

 

[tk149]

Your bank may be lying to you. They may have told you that your credit limit is, for example, $1000, but actually set it a little higher, like $1,100.

One reason they might do this is because often, when you use a debit/credit card, the merchant puts a hold on your account. For example if you swipe your card at a gas station, the merchant may place a hold on the card for $50 IMMEDIATELY, even before you have finished pumping gas. This way, the merchant knows you have enough credit/money to pay for the gas. That hold may stay on your account for two or three days, therefore even though you only bought $5 worth of gas, you have $50 less credit available to you until the hold is released.

I know gas stations do this, I'm not sure what other merchants do too, but I know there are a bunch.

 

[Vic]

Absolutely no major bank would ever lie to you about your limit.

 

[Epoman]

Or you can get a credit limit like mine (on one of my cards) $37,500

 

[Chumpman]

Originally posted by: Epoman
Or you can get a credit limit like mine (on one of my cards) $37,500

Or the $100,000 Platinum Card from Visa, or the unlimited small business card from American Express

 

[MichaelD]

Originally posted by: Epoman
Or you can get a credit limit like mine (on one of my cards) $37,500

Heh, my brother fell into that trap. He always bragged "I only have/need one credit card." He had a $30K limit. At one point, he owed almost $25K.

I, OTOH, have four cards...and owe less than that. We'll leave it at that.

AMAZINGLY enough, they approved my increase! I almost fainted. I got my speakers. I am a happy man. Poorer, but happy. You can't take it with you so you might as well spend it now! I am also The King of Superior Rationalization Skills.

 

[Amused]

Originally posted by: Vic

Originally posted by: Skoorb

Some low rate cards will default to the high interest rate even if you reach more than 80% of your limit on more than one account (First USA and Bank One i know for sure).

Now THAT is a dirty trick. Some credit card companies are dirty bastards.

Anyway as mentioned it depends on you and your car. My older brother used to overdraw on his frequently by a couple of hundred (this was in Canada). However I was once just under on mine (also in canada) and I couldn't even overdraw the pre-pay at a gas pump (I know that most companies pre-authorize for a buck before putting the final amount through. I don't know how gas stations do it, because I couldn't prepay for a gas tank's worth).

Interest rates are subject to market conditions beyond the credit providers control. Short-term rates (like credit cards) can not be securitized like a long-term closed-end mortgage. In short, anyone who thinks that "fixed forever at 2.9%" credit card really is fixed forever is a fool (or perhaps simply uneducated). If it was, the provider would go out of business within days after the Fed raised rates (which they will do someday).

That is irrelevant. First USA raised my low rate to the "default rate" at a time when insterest rates were DROPPING. They did not do it due to market forces, and even explained to me it was because too many of my revolving accounts were near their limits. (It was Xmas, and I was building my first HT setup.)

Needless to say, I do not bank with First USA anymore. I paid the card off the day I was notified and closed my account. I understand that they have been bought by Bank One, and that Bank One has continued this practice.