Hdfc CC - Manage Overlimit Usage?

[me@mit]

I have used 90% of my credit limit in HDFC Diners metal credit card, and got a message to enable Overlimit.
It says no additional cost but was not sure if this is only for enabling this feature or also for the amount used above the CC limit?
Has anyone used this feature and will it be as good as the normal credit limit with no extra charges on the overlimit usage?

 

[yusuf646]

Zero charges are only mentioned for activating the feature. When you spend over the limit, HDFC will charge 2.5% of the over-limit amount, subject to a minimum of 500 + GST.

 

[ALOAK]

I have used 90% of my credit limit in HDFC Diners metal credit card, and got a message to enable Overlimit.
It says no additional cost but was not sure if this is only for enabling this feature or also for the amount used above the CC limit?
Has anyone used this feature and will it be as good as the normal credit limit with no extra charges on the overlimit usage?

It is to enable only of course if you use beyond your limit it is just like overdraft. Incase u exceed your limit.

 

[Deleted member 11974]

you will be charged for using excess limit

 

[RajeshV]

Will the 500 be charged even if the excess amount was prepaid?

 

[Abhi5467]

Will the 500 be charged even if the excess amount was prepaid?

Yes. Anything above the credit limit will be charged even if you prepay (confirmed with bank when I needed to buy more than the limit)

 

[IcyFrag]

I have used 90% of my credit limit in HDFC Diners metal credit card, and got a message to enable Overlimit.
It says no additional cost but was not sure if this is only for enabling this feature or also for the amount used above the CC limit?
Has anyone used this feature and will it be as good as the normal credit limit with no extra charges on the overlimit usage?

How is the overlimit calculated? Like if I have already spent 90% of my DCB limit and I pay the entire amount back before bill generation, Can I again spend 100% of my credit limit till my bill is generated? Or will I be charged for an over limit of 90% overuse?

 

[IcyFrag]

How is the overlimit calculated? Like if I have already spent 90% of my DCB limit and I pay the entire amount back before bill generation, Can I again spend 100% of my credit limit till my bill is generated? Or will I be charged for an over limit of 90% overuse?

Also, what about the floater cards? Like if I have already spent 90% of my DCB limit and I pay the entire amount back to DCB before bill generation, Can I then spend 100% of my floater card limit neu infinity as well, or will it be termed as overlimit?

 

[ALOAK]

How is the overlimit calculated? Like if I have already spent 90% of my DCB limit and I pay the entire amount back before bill generation, Can I again spend 100% of my credit limit till my bill is generated? Or will I be charged for an over limit of 90% overuse?

Over limit is over your assigned limit. Say tour cc limit is 5lkhs and you spend 550lakhs you will be charged as over limit on 50k extra only. This is just like a over draft with a difference in interest. Before you can spend over your limit you need to first register for overlimit only then cc will allow it else it will get declined.

 

[ALOAK]

banks extend the over-limit facility, allowing you to surpass this limit by a predetermined percentage, often between 10% and 20% of the original credit limit. For instance in this scenario, you could spend Rs 1.8 lakh on your Credit Card instead of the standard Rs 1.5 lakh.
Over-limit fees themselves do not directly affect your credit score. However, consistently exceeding your credit limit can negatively impact your credit score.
While some banks charge up to 5% of the over-limit use, IDFC FIRST Bank credit cards have a much lower over-limit fee of 2.5%. This is subject to a minimum spend of Rs. 500

 

[IcyFrag]

Over limit is over your assigned limit. Say tour cc limit is 5lkhs and you spend 550lakhs you will be charged as over limit on 50k extra only. This is just like a over draft with a difference in interest. Before you can spend over your limit you need to first register for overlimit only then cc will allow it else it will get declined.

Just to clarify the example. Say my statement cycle is 1st to 31st of the month and I have a cc limit of say 5 lakh

Now by 10th of the month, I have already spent 4.5 lakhs in a single transaction (90% of of my assigned credit limit)

On 11th I made a payment of 4.5 lakh outstanding amount, clearing all my dues well before bill generation.

Now on say 20th of the month, I make a transaction of 1 lakh using the same cc. Now will the over limit charges be charged for me on extra 50k since I'm 50k over my assigned cc limit in the same billing cycle?

Or will over limit not kick in since the pending dues were paid and I did not spend over my limit in a single transaction?

 

[ALOAK]

Just to clarify the example. Say my statement cycle is 1st to 31st of the month and I have a cc limit of say 5 lakh

Now by 10th of the month, I have already spent 4.5 lakhs in a single transaction (90% of of my assigned credit limit)

On 11th I made a payment of 4.5 lakh outstanding amount, clearing all my dues well before bill generation.

Now on say 20th of the month, I make a transaction of 1 lakh using the same cc. Now will the over limit charges be charged for me on extra 50k since I'm 50k over my assigned cc limit in the same billing cycle?

Or will over limit not kick in since the pending dues were paid and I did not spend over my limit in a single transaction?

As per your info u still have not crossed over limit. Because u say you cleared the dues before billing cycle and again if u spend 90 percent after billing cycle and pay off and the again spend 1lakh u have not crossed it. If u cross your cc limit within your statement cycle then overlimit charge kicks in. Else no. Is this what u meant.

 

[IcyFrag]

As per your info u still have not crossed over limit. Because u say you cleared the dues before billing cycle and again if u spend 90 percent after billing cycle and pay off and the again spend 1lakh u have not crossed it. If u cross your cc limit within your statement cycle then overlimit charge kicks in. Else no. Is this what u meant.

Got it.. thanks