{"id":2128,"date":"2021-01-13T10:51:56","date_gmt":"2021-01-13T06:51:56","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=2128"},"modified":"2021-01-13T10:54:14","modified_gmt":"2021-01-13T06:54:14","slug":"overdrawn-credit-card-overlimit","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/","title":{"rendered":"overdrawn credit card ? How I went overlimit?"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"How_your_credit_card_get_overdrawn\"><\/span><span style=\"font-weight: 400;\">How your credit card get overdrawn?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is a known fact that every credit card comes with a \u201ccredit limit\u201d.It the amount you can owe on a credit card. The limit on your credit card depends up on your credit card type that bank offers you, based on your creditworthiness and income you show.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Have you ever wondered what happens when you cross your credit limit or make a big purchase that exceeds your credit limit? Do bank provides an option to exceed the limit? The answer is no. Unlike a bank account, there is no\u00a0 \u201coverdraft facility\u201d on your credit card.<\/span><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_2131\" aria-describedby=\"caption-attachment-2131\" style=\"width: 360px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2131\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2021\/01\/credit-card-31.png\" alt=\"overdrawn credit card overlimit fees\" width=\"360\" height=\"360\" \/><figcaption id=\"caption-attachment-2131\" class=\"wp-caption-text\">overdrawn credit card overlimit fees<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2334eb42f36\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2334eb42f36\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/#How_your_credit_card_get_overdrawn\" >How your credit card get overdrawn?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/#Can_you_exceed_your_limit_on_your_credit_card\" >Can you exceed your limit on your credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/#Over_limit_charges\" >Over limit charges<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/#What_is_an_over-limit_fee_on_a_credit_card\" >What is an over-limit fee on a credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/overdrawn-credit-card-overlimit\/#Impact_of_Going_Over_on_Your_Credit_Limit\" >Impact of Going Over on Your Credit Limit\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Can_you_exceed_your_limit_on_your_credit_card\"><\/span><span style=\"font-weight: 400;\">Can you exceed your limit on your credit card?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you exceed your limit without any prior confirmation, you may not embarrass of having declined your credit card. Being said, there are few banks in UAE that let their customers exceed their credit limit up to a certain point.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, some of these banks set the upper limit of <\/span><b>overdraw<\/b><span style=\"font-weight: 400;\">ing at 5% of the existing limit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These may be the reasons that you <\/span><b>overdraw<\/b><span style=\"font-weight: 400;\"> on your credit card.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You are ought to make a bigger purchase or performed other transaction that let you exceed your credit card limit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the UAE, Banks have different rules on the overdrawn credit card account. While some of the banks said that this 5% over the limit facility is offered to all customers. And some said that it would be decided on a case to case basis at the bank\u2019s discretion. The bank takes many factors into the account like your creditworthiness, your income, how timely your payments for previous credit card bills were and how often you exceed the limit set for you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But major banks will decline your credit card when you use beyond its limit in any case.<\/span><\/p>\n<blockquote><p><span style=\"text-decoration: underline;\">Tip<\/span> : If you perform transactions up to your 100% credit limit, make an immediate payment of atleast 10% amount, if you failed to make that payment, on your statement date;\u00a0 interest, Emis and other charges will be added to your balance and that will take your account over limit.<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Over_limit_charges\"><\/span><span style=\"font-weight: 400;\">Over limit charges<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_over-limit_fee_on_a_credit_card\"><\/span>What is an over-limit fee on a credit card?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A\u00a0<b>credit card over-limit fee<\/b>\u00a0is a penalty charged when you exceed the maximum balance, or limit, on your\u00a0<b>credit card<\/b>. This\u00a0<b>fee<\/b>\u00a0is added to the balance that you must repay to your\u00a0<b>credit card<\/b> company.<\/p>\n<p><span style=\"font-weight: 400;\">Your credit card will not be spared if you overdraw on it without paying over-limit charges. Many credit card issuers will offer this option but using it often lead to hurt your credit score that is not good for your financial life. You can opt this over limit o transactions at any time(when you need it).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a List of Overlimit fees charged by different banks in UAE :<\/span><\/p>\n<table width=\"660\">\n<tbody>\n<tr>\n<td width=\"142\"><strong>Bank Name<\/strong><\/td>\n<td width=\"518\"><strong>Overlimit fees<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"font-weight: 400;\">Emirates Islamic Bank<\/td>\n<td style=\"font-weight: 400;\">AED 200 for each transaction that is above your credit limit.<\/td>\n<\/tr>\n<tr>\n<td style=\"font-weight: 400;\">ADCB<\/td>\n<td style=\"font-weight: 400;\">AED 275 payable as a fee at the end of your billing cycle if you are overdrawn.<\/td>\n<\/tr>\n<tr>\n<td style=\"font-weight: 400;\">RAKBANK<\/td>\n<td style=\"font-weight: 400;\">AED 249 payable as a fee at the end of your billing cycle if you are overdrawn.<\/td>\n<\/tr>\n<tr>\n<td style=\"font-weight: 400;\">Dubai Islamic Bank<\/td>\n<td style=\"font-weight: 400;\">AED 225 payable as a fee at the end of your billing cycle if you are overdrawn.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Impact_of_Going_Over_on_Your_Credit_Limit\"><\/span><span style=\"font-weight: 400;\">Impact of Going Over on Your Credit Limit\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An over the limit on credit card account probably show some impact on your credit report. This will hurt your credit score. An over-the-limit credit card balance increases your credit utilization and could lower your credit score. You cant avoid d having the high utilization reported to AI Etihad credit bureau if you fail to pay your balance down before your account statement closes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you frequently <\/span><b>overdraw <\/b><span style=\"font-weight: 400;\">your credit card limit could signal to your provider an inability to properly handle the credit that has been extended to you. Your bank will view you as a risk and may decline your credit card.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0So it is better to not use more than your credit limit. If you want to make a big purchase that would exceed your available credit, first ask your credit card issuer for a credit limit increase.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How your credit card get overdrawn? It is a known fact that every credit card comes with a \u201ccredit limit\u201d.It [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2,76],"tags":[60,555,373,553,554,558,556,557],"class_list":["post-2128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-cards","category-banking-terms-dictionary","tag-credit-card","tag-credit-card-overdrwan","tag-credit-limit","tag-overdraw","tag-overdraw-on-a-credit-card","tag-overdrawn","tag-overdrawn-meaning","tag-overlimit-fees"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=2128"}],"version-history":[{"count":2,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2128\/revisions"}],"predecessor-version":[{"id":2134,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2128\/revisions\/2134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/2129"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=2128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=2128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=2128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}