An over limit facility on a credit card allows you to exceed the credit limit for a fee. This feature can be especially handy at certain times, such as festive or wedding seasons, or when you face a temporary financial crunch. However, it is important to note that you can only use the over-limit feature after giving your consent to the bank to allow this facility. Banks may also approve your transactions that exceed the credit limit as a service gesture. It is essential to monitor your card usage to avoid over-limit usage, especially if its unnecessary. Here are some key points to keep in mind regarding over-limit facility on credit cards:

• Fees: Any approved transactions above your credit limit are subject to over-the-limit (or over-limit) fees. This credit card fee is typically up to $35, but it cant be greater than the amount you spend over your limit.

• Opt-in: Over-limit fees cant be charged without your consent, thanks to the CARD Act of 2009, which requires you to opt-in to approve it.

• Declined transaction: If you go over your limit and haven’t opted into the over-limit program, your card will be declined.

• Increased interest rate: If you exceed your credit limit too many times, your issuer may raise your interest rate.

• Monitoring usage: It is important to monitor your card usage to avoid over-limit usage, especially if its unnecessary.

Overall, while the over-limit facility can be useful in certain situations, it is important to use it judiciously and monitor your card usage to avoid unnecessary fees and other consequences.