WalletHub, Financial Company
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An over-limit fee is a credit card fee charged when a cardholder spends more than the card’s credit limit. Legally, thanks to the Credit CARD Act of 2009, card issuers are not allowed to charge over-limit fees unless the cardholder has explicitly given the card issuer permission to process over-limit charges. That means you have to “opt in” before they can charge you an over-limit fee. If you opt out – or fail to take any stance one way or the other – charges that would otherwise put you over your credit limit may be declined, and you won’t be charged any over-limit fees.
That’s a big reason why many issuers have dropped over-limit fees in recent years. In fact, most major card issuers in the U.S. no longer charge over-limit fees on their credit cards. Although some still do charge these fees, they are required to state over-limit fees and other fees in their cards’ terms and conditions. To see if your credit card charges an over-limit fee, look at the fees section in your credit card terms. Fees will be listed near the top in a table format.
Federal law caps over-limit fees to one fee per billing cycle, for up to 2 consecutive billing cycles if you fail to bring your balance under the credit limit. However, they can charge you another fee if you bring it down and go over your limit again. If your card issuer isn’t following these laws and will not resolve the issue with you personally, you can file a complaint with the Consumer Financial Protection Bureau.

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Compare CardsGina Marte, WalletHub Advisor
@ginamarte
An overlimit fee is charged by a credit card issuer when a cardholder exceeds the card’s credit limit. Overlimit fees are typically $25 for the first over-limit charge but some card issuers opt not to charge overlimit fees.
By law, "a card issuer cannot charge an overlimit fee unless you have opted in to permit them to allow charges that put you over your credit limit."
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