People who have just applied for a credit card may have heard of the term credit card overage, but they don’t quite understand what it means. What does credit card overage mean? How is the overage calculated? Let’s take a look.

What does credit card over limit mean?

Credit card over limit means that the cumulative credit limit used by the cardholder in a billing cycle exceeds the actual approved credit limit of the card on the billing date. . For example, if a cardholder has a credit card limit of 5,000 yuan and spends 5,400 yuan, the credit card exceeds the limit. Handling various credit card services requires handling fees. When the credit card exceeds the limit, a certain handling fee will also be charged.

How to calculate the credit card overage

Generally, credit card overage means that the cumulative credit limit used by the cardholder in a billing cycle exceeds the actual credit limit of the card, and the excess amount is Fees will be charged according to a certain percentage, and the general fee standard is five thousandths of the excess amount.

To give a simple example, the fixed limit of your credit card is 10,000 yuan. The bank has provided you with a temporary limit of 2,000 yuan, but the actual limit you used exceeds 10,000 yuan. Generally, the temporary limit of Minsheng Bank credit card is valid for 15 days. You did not repay the temporary limit provided to you by the bank before the validity period of the temporary limit expires. Then even if you are over the limit.

Credit card over-limits are subject to a certain fee, referred to as over-limit fees, which refers to when the cumulative credit limit used by the cardholder in a billing cycle exceeds the actual approved credit limit of the card on the billing date. , all payables in the account do not enjoy the interest-free repayment period, and the cardholder must pay a certain proportion of over-limit fees for the excess.