Credit cards: exceeding the credit limit

The credit limit is the maximum amount that the credit card company allows you to reach when making payments using your credit card. When this is exceeded, various penalty costs arise. Here is a little summary.


Credit Limit Overage Fee

Credit Limit Overage Fee

Some companies automatically block the card when the credit limit is reached . Others allow customers to exceed it, while demanding payment of overage fees. We therefore advise you to regularly monitor the balance on your credit cards in order to avoid paying over-limit fees.

Or you can opt for a prepaid credit card, on which you pay money before spending it. With this type of product, you never exceed the credit limit.


Refused payment fees

Some credit card companies charge processing fees if payment is declined . In this case, always be vigilant about your credit limit to avoid unnecessary charges!


Inactive account fees

credit cards

If you no longer need to have a credit card, it is advisable to notify the issuing company. Some companies do not hesitate to charge inactive account fees. When canceling, ask for written confirmation.


Exceeding your credit limit

If you have exceeded your credit limit, you must pay the amount exceeding the limit . And in principle to take full advantage of all the services, you must pay an amount greater than that of exceeding the credit limit.

And if you fail to make the minimum monthly payment on your credit card on the due date, your credit card issuer could increase the interest rate. So be careful with the credit limit and the minimum monthly payment.


Credit database

Credit database

Also note that the credit database in Switzerland, ZEK, monitors all credit-related activities. This means that as soon as you have a credit card, you enter this database. If you regularly encounter difficulties in paying your monthly payments, this will be reported to the ZEK . In the long run, this could be embarrassing if one day you want to obtain a larger loan or a mortgage.

So if you are having trouble paying your monthly credit card payments, don’t hesitate to call on a credit repayment professional. This can help you restore your financial situation . We therefore recommend our partner Fine Bank, specialist in credit repurchase.

You may also like...