Card Overuse

Submitted by Suryakant Verma on Tue, 2006-07-18 00:38. :: Credit Cards

All creditcard companies provide you with maximum value for which your card can be used incase of transaction and for credit cash.

Have you ever wondered, what is Card over use charge for, if your card has certain limit beyond which card can not be sued?

Interesting thing to note is that card companies knowingly allow your card use over and above set limit, say by 1-2% and then charge you Rs350-500 for availing such a facility.

Innocent customer is caught unaware and blame is passed on to him, as cardoveruse clause exists in TOS but they don't explain how can card be overused when there is a set limit.

Also, this is UNFAIR practice as customer remains under impression that card can not be used over a limit and if trasnactinos were to jump the border, card company will deny transaction, but it is not so.

So, next time you shop, be aware of this.

Companies may claim to SMS or call you, but those services are another way to make money in form of service charges and related.

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All the credit cards I have

Submitted by bree-anne on Wed, 2007-10-10 11:46. *

All the credit cards I have had will not allow me to use them when I go over the limit. The transaction is declined. I am having thoughts about using a debit card at the moment and only keeping my credit card for emergencies.
A debit card is simply one which draws money from your account. It only allows you to make use of the money which you actually have. If you fear you might misuse a credit card then a debit card is the best option for you. However, this card does not allow you to take money on credit and will thus restrict your expenditure. What do you all think about the debit card campared to the Credit card?

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Doesn't you credit card stop

Submitted by TeKn1qu3z on Wed, 2007-10-10 04:15. *

Doesn't you credit card stop after you reach the limit? It caps itself and will not let anymore payments be made with it.

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Spend your money, Wisely!

Submitted by gscs on Mon, 2007-10-08 22:54. *

Of course, i am agree that the credit card is really useful when you're running out of cash in hand. It's depend on how you manage it and how you spend it wisely. Use Common sense, whats a good deal and whats a rip off.

However, inadequately using your credit cards can cause you or possibly force you into bankruptcy. Don't forget that every time you use your credit card you are borrowing money. Think about some issues like; Only make purchases you can afford to repay at the end of the month, Find a card that offers rewards you will use or Shop around for a card with 0% interest and no fees for balance transfers.

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This actually happened to me

Submitted by DrMike on Mon, 2007-10-08 21:53. *

This actually happened to me with 2 cards! When in college I of course over spent on my cards and ocne they reached their limits I figured all auto charges would be denied and the services for them cancelled... but no, each of my cards carried a 10% over limit fee so I ended up being an extra $450 in the hole that I never inted to be.

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Financial Institution's Policies

Submitted by gscs on Mon, 2007-10-08 11:57. *

I can say this is the exactly the reason behind most financial institution's policies. They starting promote for the college students and giving a lot of privileges to them.

Another unfortunate occurrence is that since college students are generally inexperienced with regards to the usage of credit cards, they easily slip into debt and will overuse their new found resources and create a terrible personal debt issue. Credit card debt can be a horrendous monster Credit card debt for students is certainly not uncommon.

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