- Discussion board

I just found out my GMcard will allow me to go over my limit, by XXX dollars, and then charge me a $29.00 overlimit fee. I didn't ask to go over my limit, so how can they legally get away with that? The customer agreement says if I ASK they may,or may not, extend my limit and then I would be responsible for the fee. The problem is I never asked to go over my limit. Any thought's? Any body!!!

Credit card issuers will allow an account to go overlimit to prevent "check-out embarassment". It is their view that you are responsible for knowing and adhering to your credit limit. As a courtesy, they will allow your account to go overlimit because they assume that you want and need to make that purchase. The fact that you knowingly used the card to the extent that it went overlimit will be viewed as your "asking permission" to go overlimit.

Most issuers will refund your first overlimit fee as a courtesy to you.

If you prefer that your account not be allowed to go overlimit, most issuers can put a flag on the account that will cause it to decline any charge that would put the account overlimit.

But remember, interest and other fees can also put an account overlimit, so never spend up to your credit line.

The_Insider