Gone over your credit card limit?

it is not uncommon for credit cardholders to be charged for going over their credit limits. and it generally only occurs with your consent. if you find yourself in such a situation, there are only two possible outcomes. either you incur a late fee or you end up hurting your credit score.

Click here to get information about credit cards.

opting out of over the limit charges

when a credit card is issued, you might be given an option to opt for over-the-limit transactions. if your bank provides this facility, you can opt in or out of this option anytime you want.
in case you have this option enabled, purchases exceeding your limit usually go through. the allowed overdraft amount and the levied fees are decided by your bank.
on the contrary, if you have opted out of this, any transaction that exceeds your limit would be automatically declined. this saves you from any unwarranted charges on the card.

Click on this links:- //www.reddit.com/user/cardinsider/comments/skaltz/top_best_icici_bank_credit_cards/?utm_source=share&utm_medium=web2x&context=3

impact of going over your credit limit

apart from the applicable charges, surpassing your credit card limit can have two more consequences:

• increased debt-to-limit ratio: the debt-to-limit ratio represents the consumer’s total credit card debt versus total credit card limits. in other words, it represents the amount of debt that is available for your usage. going over the card limit effectively translates to a ratio of more than 1 (or 100%), which can be bad for your credit report in the long run.
• implications on credit reports: it is rare for credit ratings to be impacted due to single over-the-limit instances. but multiple instances like these are will have a detrimental effect on the ratings.
• future credit prospects: multiple lenders can access your report and review it with soft credit checks from time to time. with a low credit score, future prospects of credit increases or new credit card issuance can be impacted.