If you go over your credit card limit, Wells Fargo may either deny the transaction or allow it without increasing your overall credit limit. Whether or not the transaction goes through depends in part on how you have managed the account and how long you’ve been with Wells Fargo. There is no Wells Fargo credit card over-limit fee. But if Wells Fargo allows an over-limit transaction, the amount over the limit will be due along with the minimum payment on your next billing statement.
Things are a bit different if you use a Wells Fargo credit card for overdraft protection on a bank account from Wells Fargo. Overdraft protection means that if your Wells Fargo checking account doesn’t have enough money to cover a purchase, your credit card gets used to cover the difference. The overdraft charge and its resulting fee could take you over your credit limit. The overdraft fee is $12.50 if the total of overdraft protection advances for the day is $50 or less. It’s $20 if the total of overdraft protection advances for the day is greater than $50.
If you find yourself frequently in danger of going over the credit limit on your Wells Fargo credit card, you may want to ask for a credit limit increase.
Here’s how to ask for a Wells Fargo credit limit increase:
You can request a credit limit increase by calling Wells Fargo customer service at (800) 642-4720. However, you’ll need to have sufficient income to handle the increased limit. You’ll also need a history of timely payments on your card in order to have a good chance of getting approved. Keep in mind that when considering you for a credit limit increase, Wells Fargo may ask to do a hard pull of your credit, which would temporarily drop your score by a few points.
If you go over your credit limit, your credit card company may add the over-limit amount to your minimum payment, lower your credit line, or even close the account if you’re exceeding the limit too often. Also, your credit score will drop if the balance is still over the limit when reported to the credit bureaus. That said, it’s more likely that the card’s issuer will simply decline any transaction that would result in the balance exceeding the credit limit.… read full answer
The only time credit card issuers can charge an over-limit fee is when a cardholder has opted in for the ability to exceed their credit limit. Even when you’ve given your credit card company permission to authorize over-limit charges, card issuers can only assess one over-limit fee per billing cycle, and that fee cannot exceed the amount by which the cardholder has gone over the limit. Ever since the CARD Act of 2009, which created these over-limit rules, most card issuers have stopped charging over-limit fees. Instead, they often just decline transactions that would go over your limit.
Finally, don’t forget that credit utilization accounts for about 20% of your overall credit score. You should always be careful not to use your credit card’s full credit limit, since maxing out a card may damage your credit score significantly. To avoid reaching your card’s credit limit, consider paying down your balance more often, applying for a new line of credit, or asking your card’s issuer for a credit limit increase.
It’s important to remember that these are the lowest credit limits you’ll start out with if you’re approved for an account. You could receive a higher limit. And the actual limit you’ll receive is based on your credit history, income, employment status, level of debt and more. Unfortunately, you won’t know how much your credit limit will be until you’re approved. Wells Fargo does not publicly disclose its maximum credit limits.
If you accept the initial Wells Fargo credit limit offer, you can request an increase in your credit limit after at least six months of timely payments. Also, after six months, Wells Fargo may review your account for an automatic increase. Eligibility is based on things such as payment history and your total amount of debt. But there’s no guarantee when, or if, an automatic increase will occur. An automatic increase uses a soft inquiry, which means your credit score is not affected.
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