Overlimit Condition and Charges - Confusion

[Collector_sahab]

As we know that Bank of Baroda is on a spree in distributing Lifetime Free BOB Credit Cards. Even they have made the application process extremely simple, allowing C2C application through online mode.
Although the credit limit they are providing is considerably less than one's credit worthiness. Here comes the Big chance of spending over limit.
I saw many people complaining on Twitter that they were charged overlimit charges on their bill by BOB, sometimes even twice in a single bill. So, can you clarify on what cases overlimit charges are levied by banks in general, or specific to BOB :
......................................................................
Let us assume a (BOB) credit card with a Limit of INR 30K

Case 1: User spends 35K on card, then Does a pre-payment of 30K to card, and final billing amount is 5K.

Case 2: User spends first 20K on card, then does a pre-payment of 20K to card. Then again spends 20K on card, and again does a pre-payment of 15K to card, in the same billing cycle, making final billing amout 5K.

Case 3: User spends 35K on card and pre pays 35K , making final bill of 0.

Case 4: User First makes a pre-payment of 10K on card, making the outstanding amount to -10K, then spends 38K on card, making final outstanding bill to 28K.

In all the cases, consider credit card limit as 30K. Please clarify the cases in which overlimit charges will be levied by bank. Also, add any other possible cases of overlimit charges applicable and also any other trick to avoid overlimit charges, if possible.
You may also share your real situation experience regarding overlimit of your cards.

 

[Harshal]

As we know that Bank of Baroda is on a spree in distributing Lifetime Free BOB Credit Cards. Even they have made the application process extremely simple, allowing C2C application through online mode.
Although the credit limit they are providing is considerably less than one's credit worthiness. Here comes the Big chance of spending over limit.
I saw many people complaining on Twitter that they were charged overlimit charges on their bill by BOB, sometimes even twice in a single bill. So, can you clarify on what cases overlimit charges are levied by banks in general, or specific to BOB :
......................................................................
Let us assume a (BOB) credit card with a Limit of INR 30K

Case 1: User spends 35K on card, then Does a pre-payment of 30K to card, and final billing amount is 5K.

Case 2: User spends first 20K on card, then does a pre-payment of 20K to card. Then again spends 20K on card, and again does a pre-payment of 15K to card, in the same billing cycle, making final billing amout 5K.

Case 3: User spends 35K on card and pre pays 35K , making final bill of 0.

Case 4: User First makes a pre-payment of 10K on card, making the outstanding amount to -10K, then spends 38K on card, making final outstanding bill to -2K.

In all the cases, consider credit card limit as 30K. Please clarify the cases in which overlimit charges will be levied by bank. Also, add any other possible cases of overlimit charges applicable and also any other trick to avoid overlimit charges, if possible.
You may also share your real situation experience regarding overlimit of your cards.

Remember that when you spend more than the available limit on your credit card, you will be charged an overlimit charge.

 

[thekirang]

As we know that Bank of Baroda is on a spree in distributing Lifetime Free BOB Credit Cards. Even they have made the application process extremely simple, allowing C2C application through online mode.
Although the credit limit they are providing is considerably less than one's credit worthiness. Here comes the Big chance of spending over limit.
I saw many people complaining on Twitter that they were charged overlimit charges on their bill by BOB, sometimes even twice in a single bill. So, can you clarify on what cases overlimit charges are levied by banks in general, or specific to BOB :
......................................................................
Let us assume a (BOB) credit card with a Limit of INR 30K

Case 1: User spends 35K on card, then Does a pre-payment of 30K to card, and final billing amount is 5K.

Case 2: User spends first 20K on card, then does a pre-payment of 20K to card. Then again spends 20K on card, and again does a pre-payment of 15K to card, in the same billing cycle, making final billing amout 5K.

Case 3: User spends 35K on card and pre pays 35K , making final bill of 0.

Case 4: User First makes a pre-payment of 10K on card, making the outstanding amount to -10K, then spends 38K on card, making final outstanding bill to -2K.

In all the cases, consider credit card limit as 30K. Please clarify the cases in which overlimit charges will be levied by bank. Also, add any other possible cases of overlimit charges applicable and also any other trick to avoid overlimit charges, if possible.
You may also share your real situation experience regarding overlimit of your cards.

+1

 

[zaid_2913]

My personal experience is if you spend more than available Limit in the card while transacting is considered as over limit. Case 1 and case 3 considered as over limit.

 

[souvikr]

As we know that Bank of Baroda is on a spree in distributing Lifetime Free BOB Credit Cards. Even they have made the application process extremely simple, allowing C2C application through online mode.
Although the credit limit they are providing is considerably less than one's credit worthiness. Here comes the Big chance of spending over limit.
I saw many people complaining on Twitter that they were charged overlimit charges on their bill by BOB, sometimes even twice in a single bill. So, can you clarify on what cases overlimit charges are levied by banks in general, or specific to BOB :
......................................................................
Let us assume a (BOB) credit card with a Limit of INR 30K

Case 1: User spends 35K on card, then Does a pre-payment of 30K to card, and final billing amount is 5K.

Case 2: User spends first 20K on card, then does a pre-payment of 20K to card. Then again spends 20K on card, and again does a pre-payment of 15K to card, in the same billing cycle, making final billing amout 5K.

Case 3: User spends 35K on card and pre pays 35K , making final bill of 0.

Case 4: User First makes a pre-payment of 10K on card, making the outstanding amount to -10K, then spends 38K on card, making final outstanding bill to -2K.

In all the cases, consider credit card limit as 30K. Please clarify the cases in which overlimit charges will be levied by bank. Also, add any other possible cases of overlimit charges applicable and also any other trick to avoid overlimit charges, if possible.
You may also share your real situation experience regarding overlimit of your cards.

Don't think much. Just disable overlimit feature and keep using your card, whichever transaction falls under overlimit category will fail automatically.

 

[Tosh]

As we know that Bank of Baroda is on a spree in distributing Lifetime Free BOB Credit Cards. Even they have made the application process extremely simple, allowing C2C application through online mode.
Although the credit limit they are providing is considerably less than one's credit worthiness. Here comes the Big chance of spending over limit.
I saw many people complaining on Twitter that they were charged overlimit charges on their bill by BOB, sometimes even twice in a single bill. So, can you clarify on what cases overlimit charges are levied by banks in general, or specific to BOB :
......................................................................
Let us assume a (BOB) credit card with a Limit of INR 30K

Case 1: User spends 35K on card, then Does a pre-payment of 30K to card, and final billing amount is 5K.

Case 2: User spends first 20K on card, then does a pre-payment of 20K to card. Then again spends 20K on card, and again does a pre-payment of 15K to card, in the same billing cycle, making final billing amout 5K.

Case 3: User spends 35K on card and pre pays 35K , making final bill of 0.

Case 4: User First makes a pre-payment of 10K on card, making the outstanding amount to -10K, then spends 38K on card, making final outstanding bill to -2K.

In all the cases, consider credit card limit as 30K. Please clarify the cases in which overlimit charges will be levied by bank. Also, add any other possible cases of overlimit charges applicable and also any other trick to avoid overlimit charges, if possible.
You may also share your real situation experience regarding overlimit of your cards.

Case 1 you won't be able to spend 35k on 30k limit card unless you enable overlimit

Case 2 all good no charges

Case 3 overlimit again

Case 4 Overlimit charges will apply as you are spending more than your limit (if any single transaction is more than 30k) else no charges.

 

[thekirang]

Please consider same cases for hdfc card and tell..

 

[Tosh]

It's bank agnostic

 

[SiddharthR]

Case 4: final outstanding bill to -2K.

Won't it be 28k

 

[Collector_sahab]

Won't it be 28k

Yes, corrected

 

[gurubhai]

Case 4 Overlimit charges will apply as you are spending more than your limit (if any single transaction is more than 30k) else no charges.

Can you share any link for this case.
As mentioned on this link https://economictimes.indiatimes.co...yond-your-card-limit/articleshow/73224405.cms
They quote

Point to note
Anuj Kacker, COO, MoneyTap said, "You can purchase beyond the credit limit in a twofold way. Let's take an example: Say you want to purchase a laptop worth Rs 60,000 but your credit card limit is only Rs 50,000. You can overpay the card with the excess amount, that is, Rs 10,000, so you have a negative balance. That way, when you make a purchase that exceeds your card's limit, it won't max out."

So now I am confused. I actually want to get something which is 6K more than my axis card limit. 😅

 

[SiddharthR]

Can you share any link for this case.
As mentioned on this link https://economictimes.indiatimes.co...yond-your-card-limit/articleshow/73224405.cms
They quote

So now I am confused. I actually want to get something which is 6K more than my axis card limit. 😅

But the spending limit is only maximum credit limit, so no way to spend in single transaction. May be possible in multiple transactions.

 

[orangespark]

Will there be a charge if i have -20k balance in cc and i withdraw using atm 10k rs?

 

[SiddharthR]

Will there be a charge if i have -20k balance in cc and i withdraw using atm 10k rs?

Yes, of course, as per T&Cs for cash withdrawal for that particular card

 

[Seth]

Can you share any link for this case.
As mentioned on this link https://economictimes.indiatimes.co...yond-your-card-limit/articleshow/73224405.cms
They quote

So now I am confused. I actually want to get something which is 6K more than my axis card limit. 😅

Bro have you tried?
I also want to do tx 4k higher than my limit.
Thinking to pre pay 4k and then do full payment.
Is it possible without over limit charges?
Keeping over limit option is already disabled.

 

[gurubhai]

Bro have you tried?
I also want to do tx 4k higher than my limit.
Thinking to pre pay 4k and then do full payment.
Is it possible with over limit charges?
Keeping over limit option is already disabled.

I didn't take risk. no point using a specific card for discount and then paying overlimit charges as well. 😅

Is it possible with over limit charges?

Yes it is possible with overlimit enabled but you will be charged extra according to the card u have.

 

[Seth]

I didn't take risk. no point using a specific card for discount and then paying overlimit charges as well. 😅

Yes it is possible with overlimit enabled but you will be charged extra according to the card u have.

No I meant without over limit charges bro.

What if I do same as this article , means pay advance like 4k and then use cc limit+4k payment?

 

[gurubhai]

No I meant without over limit charges bro.

What if I do same as this article , means pay advance like 4k and then use cc limit+4k payment?

I don't think so.
Can you break your amount into multiple payments? then you can do it by pre-payment.

 

[Seth]

I don't think so.
Can you break your amount into multiple payments? then you can do it by pre-payment.

No bro , it auto fetch premium amount which can't be edited.
So have to pay in full which is 4k higher than my limit

 

[SiddharthR]

No I meant without over limit charges bro.

What if I do same as this article , means pay advance like 4k and then use cc limit+4k payment?

Bro u can't pay more than ur limit in one go,
To use overlimit,
U can do it in 2 txn only

Overlimit is when, let's assume, (₹15k limit)
U did ₹14k txn & u have to another ₹4k txn, but u don't have that ₹14k amount to pre-pay now and still want to do ₹4k txn & want more limit, then u first need to activate overlimit & then u can do txn of ₹4k.

And if u want to do txn of ₹15.001k still u can't do that by pre-paying ₹1, bcoz txn amt is more than ur limit (15k)