What is an over-limit fee and how does it relate to the billing cycle?

An overlimit fee is a fee charged by credit card issuers when you exceed your credit limit. It is assessed when you make a purchase, cash advance, or incur fees that cause your outstanding balance to exceed your credit limit.

The overlimit fee is typically a fixed amount set by the credit card issuer and can vary among different credit cards. It is important to note that not all credit cards charge overlimit fees, and some credit card issuers may provide options to optin or optout of overlimit transactions.

The overlimit fee is related to the billing cycle because it is typically assessed and included in your credit card statement for the billing cycle in which the overlimit transaction occurred. If you exceed your credit limit multiple times within a billing cycle, you may be charged multiple overlimit fees.

To avoid overlimit fees, it is important to monitor your credit card usage and stay within your credit limit. You can keep track of your credit card balance and available credit by regularly reviewing your credit card statement, checking your account balance online or through mobile banking, or contacting your credit card issuer for updates on your credit limit.