What is Over Limit Facility in Credit Card?

Credit Card
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Please tell me what is over limit facility in credit card?

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While I personally don’t encourage overspending but this particular feature has saved me. Over limit facility in credit card is a feature that offers an option to spend beyond approved credit limit. Of course this is not a free thing, banks won’t do it out of the goodness of their hearts. It comes at an additional cost and under specific terms.

Note that you won’t have this facility available to you automatically. You ‘ll have to put in a request with your credit card provider first and upon approval, you will be able to avail benefits of the over limit facility on credit card.

Let me give you an example for better understanding on what is over limit in credit card.

Suppose you have a credit card limit of Rs. 10000 and you have to make a purchase of Rs. 12000. You will be able to do that if you opted for overlimit facility on your credit card. However, just know that when you receive your credit card, you will be charged an additional fee along with the transaction charges for using the credit card over limit.