ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit Limit
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Late Payment Fee
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Over-the-limit fee
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Returned Payment Fee
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Detailed explanation-1: -Generally, credit card issuers charge a fee of Rs. 500 on exceeding the credit limit amount. You must go through your credit agreement and understand the terms and conditions and the billing statement to determine how exactly your over-limit fee is charged.
Detailed explanation-2: -Any approved transactions above your credit limit are subject to over-the-limit (or over-limit) fees. This credit card fee is typically up to $35, but it can’t be greater than the amount you spend over your limit. So if you spend $20 over your limit, the fee can’t exceed $20.
Detailed explanation-3: -You max out a card if you reach the credit limit, and this means additional transactions will be declined. A maxed-out credit card can cause your credit score to drop, possibly by as many as 50 points. This will also put you in credit card debt if you can’t pay back your full balance by the due date.
Detailed explanation-4: -Please note that if the outstanding amount exceeds the credit limit, an over-limit fee of 2.5% of the over-limit amount (subject to a minimum of ₹550) will be levied, except for ICICI Bank’s Emeralde Credit Card. Over-limit status may also happen because of fees or interest charges.