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RBI Credit Card Overlimit Rules: Credit card is a good financial product today. With its help, you can easily get many good discounts and you also get 50 days of interest free amount. Also, if needed, you can also use it as an emergency fund.
The problem with credit cards is that every card comes with a limit and sometimes this limit falls short when needed. In such a situation, a question arises in the minds of people whether money can be spent on credit cards even after this limit. let us know.
Can money be spent from credit card even after the limit is reached?
According to the information given by RBI, an amount more than the credit card limit given by the bank can be spent (overlimit), but for this the cardholder will have to go to the credit card company beforehand and give consent for the overlimit. , After this the card company can give you the option of credit card overlimit. The card company or bank must give the user the option to start and stop this overlimit on their website, mobile app and other platforms.
How much will be charged?
According to the information given by the Central Bank, the facility of credit card overlimit can be provided by the bank or card company only after the consent of the cardholder and the overlimit charge will be levied accordingly.
Could it be on credit score?
If you use your credit card overlimit, it can have a negative impact on your credit score. Generally it is considered appropriate to use up to 30 percent of the credit card limit.