A woman sitting on the couch, looking down at her laptop.

What Happens If You Go Over Your Credit Limit?

6 min read

Published August 28, 2025

Table of contents

Key Takeaways

If you enroll in over-limit protection from your credit card company, you may be able to go over your credit limit.
Typically, exceeding your credit limit results in an over-limit fee.
Spending more than your credit limit increases your credit utilization ratio, which may damage your credit score.

Your credit limit is the maximum amount you can spend on your credit card before paying down your balance. But what if you have an emergency and need to use your maxed-out credit card? Or if a purchase would accidentally push your balance past your credit limit? Often, the transaction may be declined, leaving you to scramble for another credit or debit card option at the register. But, in some cases, you may be able to complete the transaction and pay a fee later on. Understanding the consequences of exceeding your credit limit may help you manage your balance.

Can you go over your credit limit?

Yes, some credit card companies may allow you to exceed your credit limit in certain cases.

Credit card issuers determine whether a cardmember can go over their credit limit on an individual basis, typically based on factors like the cardmember’s credit score and payment history on the credit card account.

What is over-limit protection?

Over-limit protection is a service some credit card issuers provide that prevents some of your purchases from being declined if you go over your spending limit.

You may only make purchases that exceed your credit limit if you’ve already given the credit card issuer permission by opting into over-limit protection. A credit card company may allow you to enroll in over-limit protection through their mobile banking app, online banking tool, or over the phone. Even with over-limit protection, you still usually have to pay a fee for every over-limit transaction.

If you decide later on that you’d rather not deal with over-limit fees, you may opt out. But if you do, future transactions that would go over your credit limit may be declined.

Can transactions be declined if they exceed your credit limit?

Yes, transactions that exceed your credit limit are generally declined unless you’ve opted into over-limit protection. A declined transaction may feel stressful or inconvenient, but it won’t hurt your credit score, appear on your credit report, or cost you a fee.

How much can you go over your credit limit?

Even if you enroll in over-limit protection, credit card issuers still generally cap the amount you can charge over your credit limit at a certain amount. The specific number depends on your credit card issuer. Some credit card companies may give you more flexibility if you have a consistent payment history or good credit score.

What happens when you go over your limit?

The ability to exceed your credit limit may come in handy during an emergency. But, even with over-limit protections, you may still face some negative consequences for going over your credit limit.

Charged an overdraft fee

Exceeding your credit limit may come at a cost. Card issuers usually charge a fee for each purchase over your credit limit. But per the CARD Act of 2009, credit card companies can’t charge you an over-limit fee without your explicit permission.

When you opt in to over-limit protection or agree to process a transaction that exceeds your credit limit, you typically permit the card issuer to charge an over-limit fee. The Consumer Financial Protection Bureau explains that over-limit fees are usually around $25 to $35.

But, under the CARD Act, your fee can’t be greater than the amount you spent over your credit limit. So, if your transaction only brings you $17 over your credit limit, the highest over-limit fee a card issuer may charge you is $17.

Under the Truth in Lending Act, your card issuer can’t charge you over-limit fees if interest charges push your credit card balance past your credit limit—the fees only apply to transactions.

Penalty APR

Your credit card issuer may begin charging you a penalty APR that’s higher than your standard interest rate if you overspend your account. This damaging consequence could increase your outstanding balance drastically, making it difficult to get out from under your credit card debt.

You may be especially at risk of a penalty APR if you’ve maxed out multiple credit cards, exceeded your limit more than once, or failed to pay your over-limit fees. Fortunately, under the CARD Act, you’re entitled to 45 days’ notice before your interest rate increases. If your card issuer informs you that your rate will increase, try to pay down as much of your balance as possible.

Other consequences of going over your limit

If you’re considering exceeding your credit limit, make sure you check your credit card terms to determine other potential actions your card issuer may take:

Increasing your monthly minimum payment.
Billing you immediately for the excess amount.
Cancelling your credit card account.

Did you know?

If your only credit card doesn’t provide you with enough available credit, you might consider applying for a new credit card. But first, make sure you’ve paid down your balance, including any over-limit fees. Then you may start comparing credit card options with perks and rewards.

Compare

Does going over your limit impact your credit score?

The act of exceeding your credit limit doesn’t immediately affect your credit score. But unless you quickly pay down the balance, it may drastically increase your credit utilization ratio, which plays a major role in determining your credit score.

Your credit utilization rate is the portion of your overall available credit that’s in use at one time. If you’re using most of your available credit, lenders might think you’re having financial issues that may make you a risky borrower. Generally, you should try to keep your credit utilization as low as possible.

When you overspend your credit limit, your credit utilization for that account is over 100%. Such high credit utilization on one account may severely skew your overall credit utilization ratio, especially if you either have no other revolving credit accounts or have another maxed-out credit card. A high credit limit may seriously damage your credit score, making it more difficult to qualify for a credit limit increase or a new credit card in the future.

Your credit score may fall further if you fall behind on payments or if your credit card issuer closes your account.

If you have to make a purchase that goes over your spending limit, you may minimize the impact to your credit score by paying your balance down before you receive your credit card statement.

The bottom line

While exceeding your credit limit is possible in a pinch, it’s risky. If you have a low credit limit and often need a little more wiggle room, you might consider requesting a higher credit limit from your card issuer instead, especially if you have a good credit score.

On the other hand, if you’re frequently at risk of exceeding your limit because you have a hard time managing your balance, you might consider a balance transfer credit card offer or non-profit credit counseling.

Important Information >