Managing Your Credit Limitby FDIC
Know your credit limit and stay below it. There are two problems with going over your card's credit limit. One is that your card issuer will charge you a penalty, which can be expensive, typically about $30 for each instance. Also, exceeding your credit limit may damage your credit score, which may mean higher interest rates, now and in the future. To be confident you are within your credit limit, Kincaid recommends the following. "Periodically check your balance by phone or online to make sure you stay within your limit," she said. "Also give yourself an extra cushion -- either try not to get too close to your credit limit or call the card company to get a higher limit if you anticipate a special need, such as a vacation or major purchase."