Credit Card over limit charges

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Deal Cadet
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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.

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

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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)

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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

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Fanil wrote:

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

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.

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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.

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Ramta_Jogi wrote:

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.

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

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guest_999 wrote:

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.

Axis bank shows available limit daily in credit card section (i have neo cc) if i pay 1000 – they show available limit as card limit + 1000.and they dont impose penalty if i use card limit + 1000 .

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Bk100 wrote:

Axis bank shows available limit daily in credit card section (i have neo cc) if i pay 1000 – they show available limit as card limit + 1000.and they dont impose penalty if i use card limit + 1000 .

That is different matter(paying money in advance to temporarily increase transaction limit). We are discussing about a situation here where somebody with a 25k card limit buys a 25k phone & then after 5 min try to do a 1k transaction. Some here are saying that because 25k transaction hasn’t settled yet so card will allow the 1k transaction with over limit charges.

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guest_999 wrote:

That is different matter(paying money in advance to temporarily increase transaction limit). We are discussing about a situation here where somebody with a 25k card limit buys a 25k phone & then after 5 min try to do a 1k transaction. Some here are saying that because 25k transaction hasn’t settled yet so card will allow the 1k transaction with over limit charges.

Yes. In that case it will be over limit.

Amount need to be credited before using it again. That means limit gets restored after amount gets credited. We can use more transactions after limit is restored. Not before that.

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Bk100 wrote:

Amount need to be credited before using it again. That means limit gets restored after amount gets credited. We can use more transactions after limit is restored. Not before that.

Not within the same billing cycle! You cannot keep on prepaying and using the card. This was changed recently by ICICI and HDFC. Do check with Axis.

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Ramta_Jogi wrote:

Not within the same billing cycle! You cannot keep on prepaying and using the card. This was changed recently by ICICI and HDFC. Do check with Axis.

I m using ICICI cc.. Limit is 9k only.. But m spending more than 20k per cycle by prepaying.

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Ramta_Jogi wrote:

Not within the same billing cycle! You cannot keep on prepaying and using the card. This was changed recently by ICICI and HDFC. Do check with Axis.

Let me check with sbi card customer care, recently I found out that transaction limits in sbi card app now represents limit per statement billing cycle & because max limit that can be set is card limit so logically it implies that it is not possible to spend more than card limit in a month(had a PoS transaction failed which I thought shouldn’t as it was under the max transaction limit but sms said failed due to crossing the transaction limit for the billing cycle though card had almost 90% limit available).

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VimAl_Raj wrote:

I m using ICICI cc.. Limit is 9k only.. But m spending more than 20k per cycle by prepaying.

That’s news for me!

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VimAl_Raj wrote:

I m using ICICI cc.. Limit is 9k only.. But m spending more than 20k per cycle by prepaying.

Have you checked your cibil report? What is the bill amount that icici is reporting to cibil?

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Bk100 wrote:

Yes. In that case it will be over limit.

Amount need to be credited before using it again. That means limit gets restored after amount gets credited. We can use more transactions after limit is restored. Not before that.

I checked with Axis bank. Even after the limit is restored, they are saying that you will be charged for over limit usage if you do another transaction.

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Swagger18 wrote:

I checked with Axis bank. Even after the limit is restored, they are saying that you will be charged for over limit usage if you do another transaction.

Not sure as my card limit is 100000 and usually i prepay but my spend hardly 5000 to 10000 pm.

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Swagger18 wrote:

Have you checked your cibil report? What is the bill amount that icici is reporting to cibil?

They report the due amount..I always make d due amount below ₹300..so no effect on CIBIL score..

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