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Author: LaughingRaven Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308369  
Subject: Re: Decoding the T&C Date: 7/30/2007 5:54 PM
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What I think it means: If a cardholder has a limit of $7000 and foolishly charges the balance up to $6990 without having started from a zero balance, interest charges will push the balance over the limit and an overlimit fee will be charged. (This much I already understood.) By the time the cardholder sees the overlimit fee, it's one day into the next bill cycle and an overlimit fee will be charged on the following bill even if the cardholder pays the bill in full by the due date and makes no more charges during the subsequent bill cycle.

I've experienced this in person, so yes, that's exactly how it works. Done properly, it can cause the cardholder to go overlimit more than once, which gives the lender all the justification they need to invoke the penalty rate. Also, credit insurance charges are considered purchases, and they happen right after interest posts, making it even easier for unsuspecting cardholders to incur a fee.

--
Raven
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