Credit Card Overlimit: You can spend more than the credit card limit. We are going to explain about this in detail in this article along with the rules of RBI.
RBI Credit Card Overlimit Rule: Credit card is a good financial product in today’s time. With its help, you can easily get many good discounts and you also get 50 days interest free amount. Also, if needed, you can use it as an emergency fund.
The problem with credit cards is that there is a limit given with every card and sometimes this limit falls short at the time of need. In such a situation, a question arises in the minds of people whether money can be spent on credit card even after this limit. Let us know.
Can money be spent from credit card even after the limit is reached?
According to the information given by RBI, an amount exceeding the credit card limit given by the bank can be spent (overlimit), but for this the cardholder will have to go to the credit card company in advance and give consent for the overlimit. . After this the card company can give you the option of credit card overlimit. The card company or bank will have to give the user the option to start and stop this overlimit on their website, mobile app and other platforms.
How much will be charged?
According to the information given by the Central Bank, the facility of credit card overlimit can be provided by the bank or card company only after the consent of the cardholder and the overlimit charge will be levied accordingly.
Could it be on credit score?
If you use your credit card overlimit, it can have a negative impact on your credit score. Generally it is considered appropriate to utilize up to 30 percent of the credit card limit.
