What is a credit card over-limit fee?

An over-limit fee is charged when a transaction pushes your balance above your credit limit. Since the Credit CARD Act of 2009, issuers cannot charge it unless you have explicitly opted in to over-limit coverage — otherwise the transaction is simply declined.

If you have not opted in, any transaction that would exceed your limit is declined at the point of sale with no fee. If you have opted in, the transaction may be approved and the issuer can charge a fee — generally capped at the amount by which you exceeded the limit, and no more than once per billing cycle. Going over your limit may also be listed as a penalty-APR trigger in some agreements. If you regularly bump against your limit, requesting a credit limit increase is usually the better move than opting into over-limit coverage: a higher limit lowers your utilization ratio and eliminates the risk of declined transactions or fees.

Reviewed by the ClearValue Editorial Team · Last updated 7/8/2026