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Can you exceed your credit card limit? Pros, cons, and tips to manage it

The article from Moneycontrol discusses the implications of exceeding your credit card limit. It explains that while some credit card issuers allow you to go over your limit, this can come with several consequences. Exceeding your limit might result in over-limit fees, higher interest rates, and could negatively impact your credit score. On the positive side, it can provide emergency access to funds when needed. The article outlines the pros, such as flexibility in urgent situations, and cons, like potential damage to your credit rating and increased costs. It also provides tips for managing your credit card limit effectively, such as setting up alerts for nearing your limit, understanding your card's terms regarding over-limit transactions, and maintaining a buffer below your limit to avoid accidental overspending. The piece emphasizes the importance of understanding your credit card agreement and managing your finances wisely to avoid the pitfalls associated with exceeding your credit limit.

Read the Full moneycontrol.com Article at:
[ https://www.moneycontrol.com/news/business/personal-finance/can-you-exceed-your-credit-card-limit-pros-cons-and-tips-to-manage-it-12879731.html ]