Five ways to avoid Credit Card over limit charges
Credit cards are handy in times of urgent shopping, bill payments and much more. But if you ask people what comes to their mind when they think of Credit Cards, the response mostly would be the fear of accumulating debt. While Credit Cards offer numerous offers, benefits, and privileges, many end up paying over the credit limit.
Credit Card is indeed an effective tool and profitable when the right card is chosen and managed meticulously. Let's look at what goes wrong and how we can manage it effectively to reap the benefits.
1.Know your Card
Sometimes, you might run into hideous surprises thrown by the bank in terms of additional charges which you may not be aware of while purchasing it. When you apply for a Credit Card, go through the terms and conditions thoroughly and have a complete knowledge about its features and benefits.
2. Be aware of your credit limit
Not knowing your credit limit could turn out to be quite a disaster. When you go on a shopping spree unmindful of your credit limit, it is highly probable that you will go over your credit limit. You can always log in to your online account or call up the credit card customer care service to know your credit limit. As the issuers change the credit limits frequently, it is always better to monitor it regularly.
3. Get updates on balance alerts
Some credit cards send email alerts and text messages to the cardholders when their balance is within the certain percentage of the credit limit. Enroll in such balance alerts and stay updated of your balance and limit.
4. opt out of Credit Limit Fees
The credit card issuers are prohibited from automatically enrolling cardholders in over-the-limit fee. Hence, be aware of it if you are enrolled without your knowledge. If you opt-in, the best way to avoid over limit fee is, stay under your credit limit.
5. Plan and get your limit raised
If you foresee, your spending might go up in the upcoming month. It is better to call up the Credit Card Customer service and increase your credit limit to avoid over limit charges.
By following the above-mentioned points, you can improve your spending habits and monitor credit limits as well.