Credit card interest made me go over limit

chiquita37

Thrugelmir wrote: »

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.

Thanks for being such a nice person about it

chiquita37

Aquamania wrote: »

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

It's okay, I guess from this thread they're allowed to do this. It just came as a bit of a shock is all, as I mentioned I was under-limit the whole month so the last thing I expected was to be landed with an over-limit fee.

bhp6636

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.

This has happened to me as well on two different credit cards. I learned my lesson and make sure to never go right to the limit.

fozmcfc

In simple terms limit is say £500.


You spend £499.


Minimum payment is £7.


Thus next balance is £492 + interest.


However, particularly if you withdraw cash, the interest on that money could well be £7 in itself, let alone the purchase interest.


So therefore you go over £500, when the interest is added to the £492.


I've said this a few times before, but when I had an Egg card and had cash withdrawals on it, they messaged me, during the month, to say, if you only pay the minimum, with interest added, you will go over your limit.


So yes it is correct procedure, but card companies, could well, alert customers of the fact, they need to pay more.

chattychappy

fozmcfc wrote: »

So yes it is correct procedure, but card companies, could well, alert customers of the fact, they need to pay more.

Or people could acquaint themselves with mathematics...