Over-the-Limit Fee

Over-the-limit fee is charged when your balance exceeds your credit limit. Since CARD Act 2009, you must opt-in to allow over-limit transactions and fees. Without opt-in, charges exceeding limit are simply declined.

Fee structure (if opted in):

• First offense: Up to $25
• Repeat within 6 months: Up to $35
• Can't exceed amount you went over (e.g., $5 over = max $5 fee)

Why you should NEVER opt-in:

1. Over-limit fees add to balance, pushing you further over
2. High utilization damages credit score (maxed card = big score drop)
3. Can trigger penalty APR up to 29.99%
4. Shows financial stress to lenders

Better approach: Decline over-limit opt-in. If purchase is declined:

• Use different payment method
• Pay down balance immediately
• Request credit limit increase (if creditworthy)

Going over limit is a red flag you're overextended. Address the underlying spending/income problem rather than paying fees to spend more than you can afford.