Over-Limit Fee

GeneralGlossary term

Definition

A fee charged when spending exceeds the credit limit. Now rare due to 2009 CARD Act requiring opt-in for over-limit transactions. Typically $25-35 if applicable.

Related terms

Credit LimitThe maximum amount of money a lender allows you to borrow on a credit card or line of credit. Your credit limit is determined by factors such as your income, credit history, and existing debt. Spending close to or above your credit limit can hurt your credit score and may result in over-limit fees.

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