Credit limit

youcanttakeitwithyou

Hi all.

Is it possible to spend more than your credit limit?.

Ive read about people who have spent OVER there limit.
My main concern would be if someone stole my card and racked up a load of debt on it.


just a thought.

rsykes2000

Yes you can go over your limit. In theory the banks have procedures to prevent / minimise this but it is still easy to do so.

allthingsconsidered2009

i don't see how the card would keep authorizing

MattLFC

In a lot of cases, it happens, when you are right next to the limit, and they apply interest to it.

So, say you have a £2000 limit, and you are at £1989, and the interest is applied, and it takes it to say £2013, then you are over the limit. Some will also then add a £12 charge on top of this for being over the limit lol.

Enfieldian

Unless you are going over because of interest/charges it is unlikely.

I filled up the car last night and was not paying attention to the pump so I put about £56 of fuel in when I knew I only had £52/53 credit left on the card.

The transaction was declined so I had to pay £50 on the card and the rest in cash.

noah271007

Enfieldian wrote: »

Unless you are going over because of interest/charges it is unlikely.

I filled up the car last night and was not paying attention to the pump so I put about £56 of fuel in when I knew I only had £52/53 credit left on the card.

The transaction was declined so I had to pay £50 on the card and the rest in cash.

I think you had a very LUCKY escape there! It is really more of a money earner and they do allow limits to be breached absolutely. Sometimes it declined and sometimes it does not. Maybe got to do with the online/offline transactions perhaps?

jamalfatty

Credit cards have what is called a 'shadow limit' which is basically a percentage of your limit that they will allow you to go over your limit. Yes it could be a nice little money earner for the banks but it can also be helpful, as an example if you paid your car insurance on your card but was a little short for a payment it would still go through rather than leave you uninsured.

The onus is on the consumer though to know how much they have available and keep to that, cant blame the banks for your own overspending

h_roberts

My new sofas (at 2000 a pop) came earlier than expected which meant my A&L card got hit hard in the same month as another big bill. A&L took it in their stride, just charged me £12 for the privilege! (I paid off in full on due date, so incurred no interest.)

Scotty501_2

Yes the credit limit is there for protection - by not just for you but the lender too. The lender has to adhere to the rules of responsilble lending - but it is not their job to manage you finances, and keep you living within your means - that I am afraid is done by you and solely by you as an adult in charge of your own cash flow, Hence why you have to be over 18 to have a credit card.