Everything you need to know about Credit Card Over-limit Facility (2024)

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2 mins Read | 9 Months Ago

Understanding Credit Card over limit

The credit limit is a vital factor in defining your spending capacity on Credit Cards. However, there are instances where expenses might exceed this limit. Credit Card providers have introduced the over limit facility on Credit Cards, recognising the need for a safety net. This feature allows users to transact beyond their credit limit, providing a buffer for urgent financial needs.

Suppose your Credit Card has a credit limit of Rs 1.5 lakh. Generally, you're expected to adhere to this limit for healthy financial practices. However, 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.

ICICI Bank, known for its customer-centric approach, offers a user-friendly over limit facility to address unforeseen financial requirements. This feature proves particularly beneficial during festive seasons, weddings or when facing a temporary financial crunch.

Unlike some banks that charge a higher over limit usage, ICICI Bank imposes a significantly lower fee of 2.5%. It's important to note that this fee is applicable for usage beyond the credit limit and is subject to a minimum spend of Rs 500.

How to set the over limit facility for an ICICI Bank Credit Card

Activating the over limit facility on your ICICI Bank Credit Card is easy. You can enable this feature through the iMobile Pay app. Here’s how to do it:

• Download the iMobile Pay app and log in using your credentials

• Go to the ‘Cards and Forex’ section and click on it

• Go to ‘Manage Card Tab’ and click on it

• Now, set the card limit as per your requirements and click on ‘Submit’.

Utilising the Credit Card over limit

As an ICICI Bank credit cardholder, you can decide whether to use or decline the over limit facility. Regardless of your choice, it's helpful to familiarise yourself with the terms and conditions associated with this feature.

Generally, banks may approve transactions surpassing the credit limit as a service gesture, provided the cardholder has consented. While there are no strict rules governing Credit Card over limit usage, utilising this facility only in exceptional circ*mstances is advisable. Banks expect users to exercise caution and avoid relying on the over limit feature.

Avoiding over limit charges with ICICI Bank

Proactively managing your Credit Card usage can help you avoid over limit charges.

Here are some steps to consider:

Monitor expenses

Keep a close eye on your Credit Card payments throughout the billing cycle. Reviewing your spending patterns can help you stay within your credit limit.

Set notifications

Take advantage of online apps like iMobile Pay, which notifies you when you reach a specified percentage of your credit limit.

Deactivate if unnecessary

If you do not anticipate the need for the over limit facility, consider deactivating it. It ensures that you stay within your credit limit.

Conclusion

The Credit Card over limit facility provided by ICICI Bank is a valuable tool for users facing unexpected financial requirements. While this feature offers flexibility, responsible usage is important. Understanding the over limit facility's terms and fees empowers users to make informed financial decisions.

ICICI Bank's commitment to customer satisfaction is evident in its reasonable over limit fees, waivers for limited over limit use and special privileges for specific Credit Card holders. Whether managing Credit Card payments or addressing a temporary financial shortfall, ICICI Bank's Credit Card over limit facility emerges as a reliable financial ally.

By making informed choices and utilising financial tools responsibly, ICICI Bank Credit Card users can confidently navigate their financial journey by enjoying the flexibility and convenience of the Credit Card over limit facility.

FAQs

1. What is over limit usage?

ICICI Bank offers the over limit usage feature, allowing you to spend beyond your Credit Card limit. Be mindful of potential charges associated with this flexibility.

2. What is the fee applicable for the over limit usage?

ICICI Bank charges a reasonable fee of 2.5% on the exceeding amount, ensuring you enjoy the benefits of additional financial flexibility.

3. How can I check the overuse of my Credit Card?

Regularly review your statement and use the iMobile Pay app for real-time updates on your spending and remaining credit limit.

4. What are the alternatives to an over limit usage?

Explore alternatives like Personal Loans offered by ICICI Bank if you prefer not to use the over limit facility.