Credit card interest made me go over limit

chiquita37

I've just received my credit card bill for the month which is over the balance limit and includes a fee for it. Thing is, it was (just) within the limit and then the monthly interest made me go over the limit.

Are credit card companies allowed to do that?! I thought I could spend up to my limit and then so long as I paid any interest due on time it'd be okay.

[Deleted User]

Your limit needs to allow for purchases, fees, interest and any other charges. Always stay a healthy distance from your limit.

terra_ferma

Have you tried calling them? Never tried with cc, but banks can wave charges as a one off good will gesture, in my family it happened a couple of times when it was just a case of a few pounds over the overdraft limit.

Paully232000

I am assuming that your last statement, prior to the one you discuss in your OP did not have a £0 balance. If you look at your last statement it should give you an indication of the amount of interest which will be added should you not pay in full.

This has been added to your new statement that you have just received, plus purchases in the last month which has taken you over your limit. You should have taken this into consideration when making purchases this month.

Aquamania

chiquita37 wrote: »

I've just received my credit card bill for the month which is over the balance limit and includes a fee for it. Thing is, it was (just) within the limit and then the monthly interest made me go over the limit.

Are credit card companies allowed to do that?! I thought I could spend up to my limit and then so long as I paid any interest due on time it'd be okay.

Yes that may well happen if you fail to pay at least the minimum monthly payment on time.

Or it can happen if, despite paying that month's payment, you then go and charge more transactions to the account taking it back up to (almost) the limit.

You would have been advised of the likely interest to be charged, and should have allowed for that

grumbler

chiquita37 wrote: »

Are credit card companies allowed to do that?! I thought I could spend up to my limit and then so long as I paid any interest due on time it'd be okay.

Are you implying that they aren't allowed to add interest or to charge you for going over the limit? Both assumptions are incorrect.

Also, as a minimum monthly payment is bigger than "any interest due", you have to pay more than that.

chiquita37

grumbler wrote: »

Are you implying that they aren't allowed to add interest or to charge you for going over the limit? Both assumptions are incorrect.

Also, as a minimum monthly payment is bigger than "any interest due", you have to pay more than that.

No, I know they can add interest and charge for going over the limit. What I'm asking is can they charge when they made me go over the limit, and without giving me any time to pay their charge? I was within my limit the entire month. Then on statement day they added interest due and added the fee seconds later. The interest/minimum payment isn't even due yet.

Basically, say my limit is £100. Doesn't that mean I can spend £100 and if I pay any interest due on time not incur extra charges?

Aquamania

chiquita37 wrote: »

No, I know they can add interest and charge for going over the limit. What I'm asking is can they charge when they made me go over the limit, and without giving me any time to pay their charge? I was within my limit the entire month. Then on statement day they added interest due and added the fee seconds later. The interest/minimum payment isn't even due yet.

Basically, say my limit is £100. Doesn't that mean I can spend £100 and if I pay any interest due on time not incur extra charges?

Please post a legible image of your statement (less personally identifiable info) that demonstrates this.

grumbler

chiquita37 wrote: »

...I'm asking is can they charge when they made me go over the limit, and without giving me any time to pay their charge?

Yes, they can. With all the interest and charges you have to remain below the limit.

I was within my limit the entire month. Then on statement day they added interest due and added the fee seconds later.

This was perfectly predictable.

Basically, say my limit is £100. Doesn't that mean I can spend £100 and if I pay any interest due on time not incur extra charges?

No.
You can spend full £100 only if you pay the balance in full every month (and don't withdraw cash) that results in the interest getting waived.

Paully232000

i don't think you are taking into consideration the interest estimate detailed on your previous statement. this, plus spending in the last month made you go over the limit i would imagine.

Thrugelmir

chiquita37 wrote: »

What I'm asking is can they charge when they made me go over the limit,

The Credit Card company didn't make you go over the limit. You failed to leave sufficient headroom for the interest charge. The additional charges you incurred are totally self inflicted.