Exceeding your credit limit can lead to several consequences, apart from leading to a drop in your credit score.
You can face transaction denial, over-limit fees, high interest, high minimum payments, and a drop in available credit.
If you have opted for over-limit protection, you may be able to make the purchase, but you will incur over-limit fees.
These fees can be as high as $35 per transaction. Going over your limit can also result in a higher credit utilization rate.
Repeatedly exceeding your credit limit can lead to cancellation of your credit card account and a lower credit limit.
Therefore, it is important to monitor your credit card usage and stay within your limit to avoid consequences.
You can check your credit limit by logging into your online account or checking a recent credit statement.
You can also set up alerts to notify you when you are approaching your credit limit so you can track it.
Consider a credit limit increase or a new credit card account to increase available credit and improve utilization rate.