Credit Card over limit charges

176°
Genius
MrFreak

Suppose my cc limit is 25k and I use that 25k and then I pay 25k before bill generation and then again I use the card for 1k. Will I be charged for over-limit usage? And what will the bill amount reported to CIBIL? Please, help.

18 Comments  |  
8 Dimers
  • Sort By
Benevolent Benevolent
Link Copied

You swiped 25k you paid 25k. Hence your available balance is 25k.

Mobile Guru Mobile Guru
Link Copied

No Over-Limit charges
I think they will only report that 1k (if that’s the outstanding balance by month end or the usual time their report to credit agencies)

Finance Ninja Finance Ninja
Link Copied

If 25k is adjusted before you using 1k then no overlimit charges. In case it’s still in processing state and then you used, they will charge overlimit charges

Critic Critic
Link Copied

How? Available card limit decreases instantly with usage so if you use 25k on a 25k limit card then available limit is zero & any further transaction will not be possible giving “insufficient balance” error.

View 11 more replies
Finance Mentor Finance Mentor
Link Copied

This usage of credit card over and above the credit limit by pre-payment into card account is now prohibited & even penalized by most issuers. Please check with respective bank/issuer.

Genius Genius
Link Copied

Issuer – Axis Bank.
Do you have any idea has axis bank started to penalize as well?

Finance Mentor Finance Mentor
Link Copied

@Swagger18 I do not have Axis credit card. Please call Axis customer care & ask.

replyuser
Click here to reply
Reply