What is over limit consent in credit card? Can you tell?
I am sure just like me, you have also kept swiping your credit card without realising you have crossed the limit! Over-limit usage is the extra amount you spend above your set limit.
Say your card limit is ₹1,00,000 and you end up spending ₹1,10,000. The additional ₹10,000 is over the limit.
Over-limit consent is my clear approval to let the bank process such transactions beyond my limit. As per RBI rules, my bank can only enable this if I give them permission. I usually keep this for emergencies such as an unexpected medical bill or a sudden travel expense because it is not a free favour.
The problem? It is expensive. Banks usually charge 2–3% of the over-limit amount (with a minimum fee), plus 18% GST. On top of that, the card’s regular interest rate, often 3–3.75% per month, applies to the excess.
I also know that every time I exceed my limit, it lowers my credit score and makes lenders see me as a higher risk.
So, I try to avoid it. I either ask for a higher limit, set spending alerts, or keep my usage under 70–80% of my limit. That way, I stay in control and avoid unnecessary charges.