Advice Needed-Over Credit Limit

Frank121

miss_clarabelle wrote: »

Thank you YorkshireBoy. You've put my mind at ease. When I said about it "hanging over me" I was referring to the worry. I'm a worrier lol. I spent ages and ages looking for the t&c's. They weren't easy to find for me! It says in the Summary Box at the start:

"Default charges-If your payment is late, if you exceed your credit limit, if your payment fails-£12"

It doesn't specifically say on your statement date, but then later in the document it does say specifically "£12.00 if you are over your credit limit on your statement date", so I think I had previously only read through the Summary Box statements for clarification. The numbered t&c's are the ones I have agreed to, aren't they? And they say "on the statement date" so I think I'm happy with that.

Hello Miss Clarabelle!

Please don't worry the terms and conditions are very clear that you won't be charged so long you have cleared the excess balance by the time your statement is produced . You have done this so everything will be ok.

I'm sure there is some excess limit built into the card and eventually if those small transactions (which didn't need authorization) reach that limit then it would be flagged for someone to manually review.

How you thought about asking for your credit limit to be increased? Please only do this if you can afford it though, having a higher limit isn't an excuse to get into debt. (which you are smartly avoiding by paying off your card in full each month) I'm just thinking that it might make thinks simpler for you and you could avoid this situation in future if your credit limit was a bit higher.

Frank

miss_clarabelle

Thanks Frank. I knew I could rely on this forum to help me figure it out. I did think about trying to increase my limit the other day, but for some reason the option was missing online. I think it was probably because I'm over the credit limit currently. I've paid the balance, but it takes a few days to clear. I don't necessarily think it's essential for me because I rarely get anywhere near the current limit. It has only happened because I've been buying expensive home improvement things (patio slabs, carpets etc.) and loads of baby bits over the past couple of months. I've not gone over my budget because I have the money set aside in a savings account to cover these items, but I've just been very poor at juggling the money around. Usually I'm so on the ball, but I've been distracted!

I guess an increased limit would be good if such situations arose again, but tbh I think it's unlikely I'd ever have this many big spends together. I wouldn't want to get myself into debt and the bigger the credit limit the bigger the temptation. My husband is 6 months away from paying off his IVA, which was due to credit card issues from before we met and I'd never want to be in the situation he was in. It's a real eye opener and it inspires me to be organised/frugal. But this past couple of months I've taken my eye off the ball! I think the best plan is just to get on top of paying it off as soon as it gets near the limit, as well as in full every month. Like I said, it's not as if I didn't have the cash set aside to pay it. I was just dumb and forgot/lost track!

Thank you all once again xxx

chattychappy

pvt wrote: »

No. If you tried to spend £5k with a £1,500 credit limit your card would be declined when the vendor tried to get it authorized by the issuer. I'm guessing you went over your limit making a number of small transactions that were probably below the threshold for which the vendor needs authorization from the issuer.

Yes, or they might simply authorise it anyway if the CC are confident that the cardholder is good for the risk.

OP: it does sound like your limit is too low. Suggest you ask for an increase or apply for another card. Of course whatever you spend and whatever your limit you've got to stay within your means!