The credit limit or over-the-limit fee is not a common credit card fee. It appears when a certain credit limit is exceeded due to purchases. According to the Credit Card Act, over-limit fees are almost completely abolished.


A credit card is currently evaluated as a highly valuable financial tool in case of an emergency when money is required immediately. It goes without saying that credit cards with no fee exist, however, a prevalent number of them are charged with fees that depend on the way a credit card is used. There are several types of credit card fees, such as annual, foreign transaction, cash advance, late payment, and balance transfer fees.

When a credit card is approved, a person is generally assigned a specific credit limit. It is defined as the maximum balance available at a certain time. If a customer makes a purchase that causes the over-limit of the credit card’s balance, he or she may be charged with an over-the-limit credit card fee.

At the beginning of the 2000s, this type of fee was a highly disturbing issue for consumers. A substantial number of credit cards would require a new fee every month until the credit limit was restored. When a cardholder deposited the minimum required amount to an account to stop fees, finance charges would create the situation of over-limit again and result in regular fees.

At the present day, abusive over-the-limit fees became significantly uncommon due to the 2009 Credit Card Act. According to this law, cardholders may be charged with over-limit fees exceptionally and in specific circumstances. The number of charged fees in consecutive payment cycles was limited as well. This policy had a highly positive economic impact and resulted in substantial savings of customers’ finances since over-the-limit credit card fees were abolished.