Can I go over my credit card limit?

What is a credit card limit?

Credit card limit is the maximum amount of money that the bank provides for customers to spend on shopping and paying for personal needs. Each card issuing bank will have a minimum credit limit and a maximum credit limit. This amount is different for each type of card issued. Within the same card product, each person's credit limit is also different.

Normally, when granting a credit card limit, the bank will base it on a number of factors such as:

- Income: This is an important factor that determines the credit card limit. During the application process, the bank will ask customers to prove their income. The higher and more stable the income, the higher the approved credit limit.

- Job : When you have a stable job, the bank will see your ability to pay off your credit balance in the long term. Therefore, banks always check your employment status in your credit card application.

- Credit history: When reviewing credit applications, banks will check information such as: whether you have opened too many credit cards, whether you have a habit of paying debts on time, what your spending habits are... All of this information helps the bank assess your ability to pay off credit balances.

If spending exceeds the given limit, the bank will charge the customer an over-limit fee. (Illustration photo)

Can I use my credit card over my limit?

According to the current credit card limit policy, the issuance of limits is both to control and regulate the amount of money used from the bank, and to form the habit of "using as much as you have". However, there are still some cases where banks allow the use of credit beyond the credit limit. The amount of the excess will depend on the regulations of each bank.

To be able to use beyond the granted limit, the credit card must have a history of usage and payment history with high reputation and credibility.

The credit limit is granted by the bank immediately after opening the card, the cardholder can only spend within this limit. If spending exceeds the credit card limit, the customer must accept to pay the over-limit fee.

During the process of using a credit card, if spending needs increase and the old credit limit can no longer be met, the cardholder can think of a solution to increase the credit limit.

If the credit history is good, the bank will automatically increase the credit limit for the customer. In addition, the cardholder can also proactively contact the bank to request a limit increase or increase/split the limit, open another credit card.

However, to have the bank increase the credit limit, customers must meet a number of criteria set by banks such as increased income, always paying off credit balances on time, minimizing early credit card cancellations, and making regular purchases through the card to help improve credit scores and history.

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