If you go over your credit limit, your credit card company may add the over-limit amount to your minimum payment, lower your credit line, or even close the account if you're exceeding the limit too often. Also, your credit score will drop if the balance is still over the limit when reported to the credit bureaus.
Fee Amount: Credit card over-limit charges in India typically range from 2.5% to 3% of the over-limit amount, with a minimum fee usually set around ₹500. These charges vary depending on the bank and the specific credit card. Moreover, GST is also added to this amount.
Rates and fees
You pay no annual fee to have the Citi® Diamond Preferred® Card. For foreign transactions, you'll pay a 3% fee, and there is a 5% balance transfer fee with a $5 minimum. This card's APR is a variable 17.24% - 27.99% and is based on your creditworthiness.
Make Multiple Payments
If you make frequent purchases, consider making multiple payments throughout the month to keep your balance low. This can help you avoid a case of an over limit credit card and reduce interest charges.
If you elected to allow the card issuer to allow charges that exceed your credit limit, you have the right to change that election at any time by notifying the card issuer. However, the change will not apply to transactions that occurred before you notified the card issuer.
Overlimit fee
The average overlimit fee is $25–$35;1 but the fee can't be higher than the amount that exceeded your limit—if you go $20 over, you can't be charged a fee higher than $20. The best way to avoid this specific fee is to opt out of the overlimit protection and stay well under your limit.
A credit score of 670 or greater is recommended when applying for the Citi® Diamond Preferred® Card, but scores in the excellent credit tier of 740 or higher have the best shot. Credit score requirements aren't hard and fast.
What is the highest credit limit for the Citi Diamond Preferred card? The highest credit limit for the Citi Diamond Preferred card is over $10,000, according to multiple reports from cardholders on online forums.
The Citi Diamond Preferred Card is not a suitable choice for cash back or rewards hunters. It won't help you get into a fancy airport lounge or provide you with cellphone coverage.
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.
Helps keep Credit UtiliSation Ratio Low: If you have one single card and use 90% of the credit limit, it will naturally bring down the credit utilization score. However, if you have more than one card and use just 50% of the credit limit, it will help maintain a good utilization ratio that is ideal.
When you exceed your spending limit, your account may be flagged for closer monitoring, potentially leading to more frequent account reviews. In extreme cases, repeatedly exceeding your limit might prompt the issuer to close your account altogether.
No, there is no over limit fee for the Citi Diamond Preferred but you will need to repay the amount by which you have gone over the limit within the next billing cycle. Usually, Citibank doesn't allow cardholders to go over their credit limit.
If you go over your credit limit, your card could be declined. If you're part of the optional over-the-limit coverage program, you could also be charged a fee for each billing cycle that you exceed your credit limit. Your credit card company must tell you how much these fees are before you opt in.
With a Citi credit card, like the Citi® Diamond Preferred® Card, Citi Premier® Card, or Citi® Double Cash Card, your minimum payment is equal to the full amount if your balance is under $41. If your balance is higher, you'll pay the greater of $41 or 1% of your balance plus interest and late fees.
Annual fee: $0. APR: 0% intro APR on purchases for 12 months and 0% intro APR on balance transfers for 21 months, and then the ongoing APR of 17.24%-27.99% Variable APR. Sign-up bonus: N/A. Rewards: None.
The credit card that gives you the highest available credit is the Chase Sapphire Preferred® Card because it reportedly offers a maximum credit limit of $100,000. Chase Sapphire Preferred reserves its maximum credit limit for the highest-income individuals with good credit or better, though.
Silent Generation (75+) $5,000 and above, with the average being around $30,000. Baby Boomers (56-74) Between $5,000 – $10,000, most people have around $40,000.
The highest credit limit for the Citi Diamond Preferred card is over $10,000, according to multiple reports from cardholders on online forums.
The most difficult Citi card to get is the Costco Anywhere Visa® Card by Citi, since it's their only consumer card that requires excellent credit to qualify. You also need to join Costco if you're not already a member and earn enough income to afford monthly payments on the card.
The bottom line. The Citi Diamond Preferred is a solid balance transfer credit card option for those who want to avoid paying an annual fee.
How much you can exceed your credit limit mainly depends on the credit card issuer's terms and conditions. Over-limit protection is a benefit that some credit issuers offer. This mitigates, but does not eliminate, the risk of temporarily exceeding your limit.
Consumer Financial Protection Bureau Releases Final Rule on Credit Card Late Fees, with Overdraft Fees on Deck. On March 5, 2024, the Consumer Financial Protection Bureau (Bureau) announced the final rule governing late fees for consumer credit card payments, likely cutting the average fee from $32 to just $8.
Paying off your entire credit card balance every month is the most cost-effective strategy that avoids not only over-limit fees but also high-interest rate charges.