Credit Card Over the Limit Fees

evherkes

Hi,

I went over my limit by about £50, and I only found out when I got my statement through, and of course it had an "over the limit" fee. I've just had this months statement through and although I w now under, with the interest I am now back over and I have got another charge because of the interest!

Can they do this? I pay more than my minimum payments and can't afford anymore at the moment.
Shouldn't they tell you, or not let you go over your limit?

Would appreciate some help as I'm not entirely sure on where I stand!

Thanks,

Emily

opinions4u

Yes, they can do it.

Time for you to start doing sums when you get your bill through, and when using the card.

Don't trash your credit file by assuming your card company are looking after you.

whatyadoinsucka

with credit comes responsibility from both sides.
did you not keep hold of the receipts and tot them up to ensure you didn't go over the limit.

stop using the credit card immediately until you have got your balance under the limit. start keeping a record of what your spending on the card. and ensure you do not go over the limit, can you extend the limit..

the rules of successfull credit card ownership

know your balance, and keep within it,
pay the full amount every month to avoid interest (set up full amount payment)
set up a direct debit for the minimum payment to avoid fees for forgetting to pay.
don't pay interest and especially don't pay fees

evherkes

I do pay more than the minimum payment (double)

It is the first time I have used it in almost a year as I have been paying it off, but as I had just moved and I had a little one to feed I bought my food shopping with it.

As I only use it for emergencies, such as no food!, I may see if i can extend the limit, which I hadn't thought of!

Thanks,

whatyadoinsucka

as you are already over the limit they may not extend the credit. but its worth a try..
but do not be tempted to then spend up to the new limit.

this is not your money its the banks and they will charge you for it..

pkc_2

evherkes wrote: »

Hi,

I went over my limit by about £50, and I only found out when I got my statement through, and of course it had an "over the limit" fee. I've just had this months statement through and although I w now under, with the interest I am now back over and I have got another charge because of the interest!

I have never in my 10 years with MBNA have gone over the my limit, until today, by accident, and by less than 2£ and this was their interest on a CASH transaction!

I have been trying to call them for 3 days with no luck.

Anyone have any ideas if we can complain about the 12.50 charge and the 30+£ interest now being charged.!

opinions4u

evherkes wrote: »

I do pay more than the minimum payment (double)

Great. But what does that cover? Interest? Insurances? Spending?

How much does your debt go down by? Not very much, if at all.

If I'm right, you need to start thinking in terms of debt reduction, not minimum payment.

It is the first time I have used it in almost a year as I have been paying it off, but as I had just moved and I had a little one to feed I bought my food shopping with it.

As I only use it for emergencies, such as no food!, I may see if i can extend the limit, which I hadn't thought of!

Be careful here. This could be flagging up a significant problem that you need to face in to. No food for a child. Debt not falling on a credit card. Recently moved.

Time to start budgeting much more carefully. Increasing your credit limit is all well and good. But sooner or later the card company will say no. Then what?

Take a look at www.makesenseofcards.co.uk. Complete a statement of affairs and post it on the Debt-free Wannabe part of this forum. You'll get loads of help with reducing outgoings which will give you a chance to chip away at the debt.

At the moment there are signs that you could be heading towards a financial abyss. Spot them and deal with it - increased credit limit merely defers the problem. It will catch up with you sooner or later.

corbyboy

I believe they have also recently changed the rules so that your minimum payment has to cover all fees, interest and 1% of your balance. So hopefully this won't happen again.

Although I have this feeling in the back of my mind that this might only cover new customers.

[Deleted User]

Opinions4U has given you some very good advice.

YorkshireBoy

corbyboy wrote: »

I believe they have also recently changed the rules so that your minimum payment has to cover all fees, interest and 1% of your balance. So hopefully this won't happen again.

The interest part is only that interest accrued and charged to the account at statement date. Interest still accrues from statement date, through postal delays, and how ever long you sit on the bill before making the (less than full) payment, and again from this date to your next statement date...when this interest is then applied on your next statement date. If the OP is sailing so close to the wind, a £12 fee fee could tip the balance and mean it probably will happen again...unless they adopt the excellent suggestions already made in this thread.

Although I have this feeling in the back of my mind that this might only cover new customers.

No. It applies to existing customers too (or will do soon depending on lender).

corbyboy

YorkshireBoy wrote: »

The interest part is only that interest accrued and charged to the account at statement date. Interest still accrues from statement date, through postal delays, and how ever long you sit on the bill before making the (less than full) payment, and again from this date to your next statement date...when this interest is then applied on your next statement date. If the OP is sailing so close to the wind, a £12 fee fee could tip the balance and mean it probably will happen again...unless they adopt the excellent suggestions already made in this thread.No. It applies to existing customers too (or will do soon depending on lender).

I am a bit confused now. I thought the idea of the new rules was that making the minimum payment will always reduce your balance, although not always by much.