Overlimit Fee

[ccquestion]

With all of the holiday shopping this year I was incredibly close to going over my credit card limit but I managed to stay $5 under. However, I just received this month's bill and I was charged an overlimit fee because the interest charge for the month put me over my limit. I thought that interest charges could not be counted against you for over limit charges. I had been with another credit card company before and they had told me that they can not charge a fee for the interest you just don't have any available balance. But now they sold the company to this new company and the new company is saying that they can charge an overlimit fee for interest. Also, will this affect my credit score? Thanks

[Jeremy]

Overlimit fees being charge when interest puts you over the limit is standard practice. I'd imagine when your bank got bought out they sent you a new terms and conditions for your card that had that fact burried in it. Being over the limit currently will hurt your credit score, but there's no historical record of this on your credit report, so once you pay off part of your balance and are no longer over you limit, it shouldn't have any impact.

[javablues]

Another expenditure item which could catch you flat footed is annual renewal fees. That includes your renewal fee as principal card holder and your extension account holder's fees. The latter is regradless whether his or her credit privileges were enjoyed or not.