#overlimitfee

To be a successful credit card holder, it is encouraged to start building a good credit score once you get your first credit card because having a high credit score means the increase of credit limit as well (Fontinelle, 2012). When I first got my credit card I had a credit limit of $1000. I usually use my credit card for larger payments such as electronics, cosmetics or gasoline for the car.  

To make payments on time, I set a reminder every 28th day of the month and this helps me remember to pay my bills on time without having to be charged interest. I did this routine for more than 6 months and it lead me to an advantage. Recently I received a letter from Royal Bank of Canada offering a raise to my credit card limit to $4000.

How did this happen?

The most basic and simplest way for the bank to raise your credit limit is to pay your bills on time to show a good credit score.

https://www.google.ca/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjt5snRroPQAhUo_IMKHcTtAHAQjRwIBw&url=http%3A%2F%2Fwww.creditcards.ca%2Fcredit-card-news%2Fis-increasing-your-credit-limit-a-good-idea-1264.php&psig=AFQjCNGtRCvz-lqZ7sTMvidDmpY7VEIbcg&ust=1477945624627108

Over-limit Fee

However, before my credit limit increased to $4000, there was this one time I wasn’t aware of my credit card limit, and spent passed it. When I bought my laptop for $1017, I kept thinking I am only swiping my credit card once and $1017 is not much of a difference from $1000. But I was wrong, I was charged an over-limit fee of $30 for spending $17 over the credit limit. Although I had to pay this $30 fee, this fee gave me a lesson of staying aware of how much is to be spent when I am using a credit card. Therefore always be aware of what your credit limit is because you do not want to make the same mistake I did in having to pay that over-limit fee.