Reduce Credit Card Charges

Credit card companies make a lot of money.  How?  Obviously they charge a high rate of interest, but they also charge various fees that may not be obvious.  Did you know that most credit cards will charge an extra fee if you exceed your credit limit?  It’s true.

Most people assume that they won’t be able to exceed their preset credit limit; if they try to make a purchase that will exceed their limit, they assume the card will be declined.  It may be, but it’s also possible that your card issuer will allow you to exceed your limit by a moderate amount.  Why would they allow that?  Simple: more fees for them.

If you have a $10,000 limit, they may allow you to go as high as $11,000 or $12,000.  However, if you do, they will charge you an “over-limit” fee.  The fee could be $50 or more per month, and that’s in addition to the interest they will also charge you on the purchase.

Be careful; know your limit, and don’t exceed it.  Of course the best advice is to always pay your card in full each month, so that you pay no interest or extra fees.  That’s the truth about credit card costs.

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