Over Your Credit Limit
I just got a notice from American Express that they are: (1) “raising your Annual Percentage Rate (APR) on purchases and cash advances,” (2) “raising the Annual Percentage Rate (APR) on any balances that have a penalty rate because of a late payment,” and (3) “increasing the late fee.”
However, they also say: “We are pleased to let you know that we will not charge you a fee if you go over your credit limit.”
Now, the whole idea of going over one’s credit limit seems like a strange thing. The credit card industry seems to have been treating such limits like the police do with speed limits: you can exceed them as long as it’s not by whopping amounts. Now, like the police who don’t ticket you for going, say, 64 mph in a 60 mph zone, the credit card companies are letting you off.
I’m a bit old fashioned when it comes to credit card limits (not speed limits, though). If you have a $2,500 limit, I guess I think any charges over that should be declined by the credit card company. And how high can you go? We know 70 mph in a 60 zone will get you a ticket if a cop clocks you. But how many hundreds of dollars can one go over a limit? Or is it a percentage of the limit so that someone with a $10,000 limit can violate it to a greater extent than the person with a $2,500 limit?
American Express ends their notice by saying: “Don’t forget, it’s still important to keep your balance under your credit limit.”
Oh, in case you didn’t know: “Please remember you can avoid late fees by paying on time.” Well, who woulda thunk?
However, they also say: “We are pleased to let you know that we will not charge you a fee if you go over your credit limit.”
Now, the whole idea of going over one’s credit limit seems like a strange thing. The credit card industry seems to have been treating such limits like the police do with speed limits: you can exceed them as long as it’s not by whopping amounts. Now, like the police who don’t ticket you for going, say, 64 mph in a 60 mph zone, the credit card companies are letting you off.
I’m a bit old fashioned when it comes to credit card limits (not speed limits, though). If you have a $2,500 limit, I guess I think any charges over that should be declined by the credit card company. And how high can you go? We know 70 mph in a 60 zone will get you a ticket if a cop clocks you. But how many hundreds of dollars can one go over a limit? Or is it a percentage of the limit so that someone with a $10,000 limit can violate it to a greater extent than the person with a $2,500 limit?
American Express ends their notice by saying: “Don’t forget, it’s still important to keep your balance under your credit limit.”
Oh, in case you didn’t know: “Please remember you can avoid late fees by paying on time.” Well, who woulda thunk?
posted by Bud Hirsch at 2:00 PM
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