A consumer could get hit with over-the-limit fees if they use their credit card before the card issuer processes the cardholder’s monthly payment.
The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we may receive compensation when you click on links to products from our partners. Learn more about our advertising policy.
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Please see the bank’s website for the most current version of card offers; and please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.
Consumers may get hit with fees for going over their credit limit if they don’t pay attention to when their monthly bill payment posts.
While the cardholder may send their payment in to the credit card issuer well before the due date, the bank may not process their payment immediately. As a result, simply having the issuer receive the payment does not mean the credit card balance is immediately reset to zero.
If that cardholder happens to be very near their credit limit before sending off payment, but then makes additional charges before the payment gets processed, those charges could push them over their credit limit.
A call to the credit card issuer’s customer support number (usually provided on the reverse side of the card or on the monthly statement) to explain the situation may be enough to get over-the-limit charges reversed. Still, it is best to avoid getting into this situation in the first place.
Another strategy is to use online bill pay. Most banks include their web address on the back of their credit card. By going online to set up an account, you can pay your credit card balance off before you ever receive a monthly statement. Additionally, it could help your payment get processed faster.
To comment on this story, write Editors@CreditCards.com.
More credit card news.