What will happen if your credit card exceeds your limit?

Some banks may need to charge a certain over-limit fee. In fact, the occasional overpayment has little impact, as long as you remember to repay it on time in the future. However, if you frequently max out or max out your credit card, it will not be conducive to maintaining your card. It may trigger bank risk control, resulting in your credit limit being reduced, or in serious cases, your card may be blocked. And if the repayment amount is too large due to blind swiping of credit cards, it will also bring great repayment pressure to customers.

Credit cards, also called credit cards, are credit certificates issued by commercial banks or credit card companies to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000).

Compared with ordinary bank savings cards, the most convenient way to use credit cards is that they can be used for ordinary consumption without cash in the card. In many cases, you only need to return the consumed amount on schedule.

You can use overdrafts without deposits, and you can enjoy an interest-free period of 20-56 days for on-time repayment without any interest charges (most banks will charge an interest of 50,000 cents on the day of cash withdrawal, and 2 handling fees, ICBC cash withdrawals are free of handling fees and only charge interest).

Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

You can enjoy discounts when you use the card at the bank's designated merchants.

Accumulate personal credit and add a record of integrity to your credit file that will benefit you throughout your life.

It is accessible nationwide and you can withdraw money or make purchases by swiping your card at ATMs and POS machines with the UnionPay logo; (Note: Credit cards are only suitable for consumption and swiping. It is best not to withdraw cash. The handling fee for cash withdrawals is very high and very inconvenient. Cost-effective)

Swipe card purchases, collect existing points with some credit cards, and offer a variety of discounts and lucky draws throughout the year, so you can always be surprised as long as you use the card; (most credit card online payments do not have points, but online shopping payments Very convenient and fast)

Free mailed statements every month, allowing you to transparently control every consumption expenditure; (now promoting green environmental protection, paper statements can be canceled and changed to electronic statements)

The unique supplementary card function is suitable for couples to manage finances at the same time, or to control their children's financial expenditures.

The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.

400 or the 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately and there is zero risk of losing the card.

Have validity period: It is known that the validity period of domestic credit cards is generally three or five years.

Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) for business cooperation to provide cardholders with preferential services.

What will be the consequences after a credit card is exceeded?

If the card consumption exceeds the fixed limit, it is called over-limit.

The consequence is that over-limit fees will be charged. For this amount of money, the bank will charge an over-limit fee of (10005) 50 yuan, so it is not cost-effective to overdraft.

If returned on time. There will be no overdue payment.

Extended information:

Credit card over-limit fee is referred to as over-limit fee. It means that the cumulative credit limit used by the cardholder in a billing cycle exceeds the actual approval of the card on the billing date. When the credit limit is exceeded, the cardholder must pay an over-limit fee based on a certain proportion of the excess.

Situation 1: Exceeding the limit due to the use of the over-limit limit

Since the over-limit limit is an implicit limit beyond the credit card limit set by the bank, it is usually not stated explicitly to the user. If you don't know how your credit card limit is being used, you are likely to use the implicit over limit.

If the over-limit consumption cannot be repaid before the over-limit consumption is recorded, the bank will charge an over-limit fee for the excess amount.

Scenario 2: Interest and late payment fees lead to over-limits

Most banks do not set over-limit limits, but over-limit fees may still be incurred because the repayment was not repaid in full last month. The interest and late payment fees incurred will result. Failure to repay in full in the previous period will result in recurring interest and late fees. These fees will increase day by day and eventually cause the debt to exceed the credit limit.

The probability of such an overrun is small and easily ignored by users. Therefore, cardholders need to pay special attention - if the full repayment of the previous period was not made, they should pay attention to their own credit limit usage. .

Scenario 3: Expiration of temporary credit limit leads to overrun

During the long holidays, many banks provide customers with automatic increases in credit card credit limits, or users contact customer service in an emergency. Apply to increase the credit limit according to a certain proportion. This part of the limit is called a temporary limit.

Under normal circumstances, after the temporary limit expires, the credit card limit will be restored to the original credit limit. If there is still a portion in the account that exceeds the original credit limit, an over-limit fee will be charged proportionally.

Over-limit fee standards stipulated by the Central Bank

After using the card beyond the limit, credit card holders will not enjoy the interest-free repayment period and minimum repayment amount. Overdraft interest shall be paid based on the prescribed interest rate on the cash transaction amount or overdraft amount starting from the bank accounting date.

The card-issuing bank shall charge an over-limit fee of 5% of the excess of the credit limit if the credit card holder uses the card. my country's card-issuing banks have their own regulations on charging over-limit fees, but the fees generally cannot exceed the relevant regulations of the central bank.

Most banks do not charge over-limit fees for over-limit behavior, and some banks do not even set over-limit fees; but some banks charge over-limit fees, and the charging standards even exceed the regulations of the central bank. It depends on the specific situation. Bank regulations.

Regulations of various banks

Industrial and Commercial Bank of China, China Construction Bank, Bank of Communications, Industrial Bank and other banks will not charge over-limit fees for the time being; Agricultural Bank of China’s over-limit fees have been cancelled, but if customers cannot Repayment in excess of the limit will affect the next application for a temporary limit increase;

Bank of China's over-limit fee has also been cancelled, but if the customer cannot repay on time, late fees and interest will be incurred; Bank of Beijing will not charge it for the time being. There is an over-limit fee, but the card will not be usable during the over-limit period;

China Merchants Bank does not charge an over-limit fee, and the part used for the temporary limit will be included in the minimum repayment amount of the next bill. , you can pay it off in one lump sum on the due payment date. Shanghai Pudong Development Bank charges an over-limit fee of RMB 5 for the excess of the fixed limit; Guangfa Bank charges an over-limit fee of RMB 5 for the excess of the fixed limit, with a minimum deduction of RMB 10 and a maximum deduction of RMB 200; China Everbright Bank charges a permanent deduction of RMB 10 for the excess of the fixed limit. An over-limit fee will be charged for 5% of the credit limit;

CITIC Bank will charge an over-limit fee for 5% of the credit limit. The minimum fee is 5 yuan or 1 US dollar or 5 Hong Kong dollars or 1 euro.